Page 4 - 2016 Enrollment
P. 4
4
PPO Plan HSA Plan
The PPO plan is a traditional plan For 2016, there will be no major changes to the beneits on the HSA plan.
which includes ixed dollar copays To better understand the HSA plan, you must irst realize there are two
for physician ofice visits and parts to this option:
prescription drugs.
1. It is a full-ledged medical plan that offers you coverage within
For 2016, the only major change Anthem’s large network of physicians, hospitals, and facilities. The
to beneits is an increase to the major difference is everything, except preventive care, is subject to
emergency room copay. the plan deductible. Because everything goes toward the deductible,
you will pay irst-dollar costs for all physicians’ visits, medical services,
On the PPO plan only, you will and prescriptions until you meet your annual deductible of $1,500 per
continue to have the deductible individual or $3,000 per family.
carryover feature. With the 2. It comes with the option of opening a health savings account
deductible carryover, expenses (HSA), which is a special bank account only available to people who
you have accumulated towards participate in a qualiied high deductible health plan (QHDHP), like
your deductible in the last three McCormack Baron’s HSA plan. The HSA allows you to pay out-of-
months of the year—October, pocket expenses with pre-tax dollars. You will own and administer
November, and December—will your HSA account, and there are no “use it or lose it” restrictions as
apply to your deductible that starts required with the medical FSA. An HSA allows you to save and roll
over on January 1, 2016. However, money over if you do not spend it within the calendar year. In fact,
the deductible carryover does not if you change health plans or jobs, the money in the HSA account
apply to the prescription drug is yours to keep, so long as, you use it for qualiied medical, dental,
deductible. Also, please note that and/or vision expenses. The money you contribute to an HSA is
if you switch to the HSA plan, the tax-free both when you put it in and when you take it out. Eligible
deductible carryover beneit does expenses are deined by the IRS. These expenses include such things
not apply to that plan. as deductibles, coinsurance, prescription drugs, and lab tests. IRS
Publication 502 provides a complete list of eligible expenses. A link to
this list can be found at www.irs.gov.
Tax Advantages of the HSA
Contributions to an HSA are tax-free (they can be made through
payroll deductions on a pre-tax basis when you open an account with
BeneitWallet, formerly Mellon Bank).
The money in this account (may include interest and investment
earnings) grows tax-free.
As long as the funds are used to pay for qualiied medical expenses,
they are spent income tax-free.
Employee Benefits
PPO Plan HSA Plan
The PPO plan is a traditional plan For 2016, there will be no major changes to the beneits on the HSA plan.
which includes ixed dollar copays To better understand the HSA plan, you must irst realize there are two
for physician ofice visits and parts to this option:
prescription drugs.
1. It is a full-ledged medical plan that offers you coverage within
For 2016, the only major change Anthem’s large network of physicians, hospitals, and facilities. The
to beneits is an increase to the major difference is everything, except preventive care, is subject to
emergency room copay. the plan deductible. Because everything goes toward the deductible,
you will pay irst-dollar costs for all physicians’ visits, medical services,
On the PPO plan only, you will and prescriptions until you meet your annual deductible of $1,500 per
continue to have the deductible individual or $3,000 per family.
carryover feature. With the 2. It comes with the option of opening a health savings account
deductible carryover, expenses (HSA), which is a special bank account only available to people who
you have accumulated towards participate in a qualiied high deductible health plan (QHDHP), like
your deductible in the last three McCormack Baron’s HSA plan. The HSA allows you to pay out-of-
months of the year—October, pocket expenses with pre-tax dollars. You will own and administer
November, and December—will your HSA account, and there are no “use it or lose it” restrictions as
apply to your deductible that starts required with the medical FSA. An HSA allows you to save and roll
over on January 1, 2016. However, money over if you do not spend it within the calendar year. In fact,
the deductible carryover does not if you change health plans or jobs, the money in the HSA account
apply to the prescription drug is yours to keep, so long as, you use it for qualiied medical, dental,
deductible. Also, please note that and/or vision expenses. The money you contribute to an HSA is
if you switch to the HSA plan, the tax-free both when you put it in and when you take it out. Eligible
deductible carryover beneit does expenses are deined by the IRS. These expenses include such things
not apply to that plan. as deductibles, coinsurance, prescription drugs, and lab tests. IRS
Publication 502 provides a complete list of eligible expenses. A link to
this list can be found at www.irs.gov.
Tax Advantages of the HSA
Contributions to an HSA are tax-free (they can be made through
payroll deductions on a pre-tax basis when you open an account with
BeneitWallet, formerly Mellon Bank).
The money in this account (may include interest and investment
earnings) grows tax-free.
As long as the funds are used to pay for qualiied medical expenses,
they are spent income tax-free.
Employee Benefits
