The Boston University Health Plan. How
the Health Savings Plan with Health Savings Account Works.The BU Health Savings Plan with Health Savings Account is unique because it
combines health savings plan benefits with the opportunity to save for both
current and long-term health expenses. The Health Savings Plan is an IRS
qualified high deductible plan which means you are eligible to save for long
term health expenses through a health savings account or HSA. An HSA allows you
to contribute tax-free dollars towards qualified health care expenses. We will
discuss this in more detail in just a bit. The Health Savings Plan uses the
Blue Cross Blue Shield national network of physicians. You also have the option to
see providers outside the national network. The Blue Cross Blue Shield
national network plus providers outside the national network equal your total
provider choice. Now let’s talk about the key features of the BU Health Savings Plan. There are no co-payments with this plan. You pay nothing for in-network
preventative care. For all non preventative in- and out-of-network
medical care and prescription drugs you must meet the deductible before the
plan begins paying benefits for services subject to coinsurance. After you meet
the deductible, you pay coinsurance, a percentage of the cost, until you reach
the out-of-pocket maximum. The out-of-pocket maximum is designed to
protect you from high out-of-pocket costs. Once you reach the out-of-pocket
maximum, the plan pays 100% of eligible expenses. It’s important to note
that both medical and prescription drug expenses share the same out-of-pocket
maximum in this plan. Let’s look at what you pay in the BU Health Savings Plan. As
you can see from this chart, preventive care is covered at 100% in-network. For
non preventative care and prescription drugs you pay the deductible before the
plan starts sharing in the cost of services, as shown here, up to the
out-of-pocket maximum. Prescription drug benefits are provided
through OptumRx, no through Blue Cross. You will automatically receive a
separate Pharmacy Benefit card from OptumRx. If you take maintenance
medication, you can enroll in the home delivery program and save time and money.
Now let’s talk more about the health savings account and its features. The HSA
is the key to long-term savings for healthcare. It’s the core of the BU
Health Savings Plan this unique account enables long-term savings for healthcare
expenses tax-free. The HSA provides a triple tax advantage. Money goes in
tax-free, money grows tax-free, and money is withdrawn tax-free when used for
qualified health expenses with the HSA. BU contributes as long as you contribute.
The contribution is $500 if you enroll in single coverage or $1,000 if you
cover yourself and any number of dependents. You own these contributions
immediately. You must open and contribute to the Fidelity HSA to receive BU’s
contribution. You may contribute to the HSA up to the annual IRS maximum less BU’s contribution. If you are 55 or older you can save an additional $1,000 per
year in catch-up contributions. You never lose it. That’s right, there is no use it
or lose it rule. Your balances rollover from year to year and you can take the
money including BU’s contributions with you when you retire or leave BU. As we
mentioned, both you and BU can contribute to your HSA up to IRS limits.
For single coverage the 2020 limit is $3,550 and for family coverage the 2020 limit is $7,100. This limit includes both your contributions and BU’s contributions.
BU contributes $500 for single coverage and $1,000
for family coverage. You must contribute to your HSA to receive the BU
provided contribution. If you will be age 55 or older during 2020 you can
contribute an additional $1,000 in catch-up contributions. Check
out the comparison chart and Coverage Advisor Tool at the BU Human Resources