State High Deductible Health Plan (HDHP) with Health Savings Account (HSA)

State High Deductible Health Plan (HDHP) with Health Savings Account (HSA) - HDHP administered by Blue Cross Blue Shield of Michigan (BCBSM), HSA administered by HealthEquity

The State High Deductible Health Plan (HDHP) with Health Savings Account (HSA) provides a different way for employees to cover health care costs while still being able to access the entire BCBSM PPO network. An HDHP offers a lower biweekly premium in exchange for higher deductibles and out-of-pocket limits. Identified standard preventive services are covered at 100%, but most other services have a 20% in-network coinsurance after meeting the deductible.

Enrollment in the State HDHP will also provide access to an HSA, which is a tax-advantaged savings account that can be used to pay only eligible health, prescription, dental, and vision-related expenses incurred for services not covered by insurance (e.g., deductibles, copays, and coinsurance).

The state will make an annual HSA contribution of $750 for an eligible individual employee enrolled in the State HDHP or $1,500 for an eligible employee who enrolls with one or more eligible dependents in the State HDHP,* effective January 1. This contribution will be prorated for employees who enroll mid-year. Employees can also make pre-tax HSA contributions by payroll deductions. The HSA balance belongs to the employee and can be carried over from year to year. You keep what you don't spend on medical expenses, even if you retire or leave state employment. Earnings on an HSA fund balance are tax-free, and you can withdraw your money tax-free anytime, as long as you use it for qualified medical expenses for yourself or your tax dependents.

You're eligible for an HSA if you enroll in the State HDHP and have no other non-HDHP health care coverage, including coverage through your spouse or any other person, and you are not claimed as a dependent on another person's tax return.

Review plan materials carefully to understand the advantages and risks associated with the plan.

*Note: MSPTA-represented (T01) employees and Other Eligible Adult Individuals (OEAIs) and their dependents are not eligible for this benefit.