Page 8 - TCW_Benefit Guide_2019 FINAL

MEDICAL COVERAGE

Eligible employees have the following medical plan choices for 2019 plan year. Please read
through the plan features and review the comparison chart on the following pages.
CALIFORNIA EMPLOYEES ALL OTHERS
• CDHP w/HSA
Anthem • PPO Anthem • CDHP w/HSA
• PPO
• HMO

CONSUMER DIRECTED HEALTH PLAN (CDHP) OPTION WITH HEALTH SAVINGS
ACCOUNT (HSA) – AVAILABLE TO ALL EMPLOYEES – ALL STATES

A CDHP is a type of medical insurance that lets you make decisions about how you’ll get the
most value from your healthcare dollars based on what factors are most important to you.

TCW’s CDHP is paired with an HSA that may be used to pay for medical expenses. The
plan offers flexibility to obtain services in- and out-of-Anthem’s network with the additional
freedom to select a specialist without a referral. You make choices about what doctors and
hospitals to use. Then you pay for your healthcare using a combination of your medical
insurance and your HSA.

ADVANTAGES OF HSA ACCOUNTS

• Total contributions up to $3,500/individual and $7,000/family pre-tax dollars for 2019.
• Unused funds roll over from year-to-year.
• Your HSA belongs to you, even if you switch employers, change health plans or retire.
• If you have a HSA from another employer, you can transfer the balance to your new HSA.
• Your money can earn interest — plus, you may elect investment options.

Some common eligible expenses may include:
• Deductibles, copays and coinsurance • Vision care, including LASIK laser
• Eligible prescriptions eye surgery
• Dental care, including orthodontia

Funding: For employees enrolling in the CDHP with HSA, TCW will contribute to the HSA
on your behalf in the following annual amounts:
Employee Only: $750 Family: $1,500

Funds are deposited each pay period, over the course of the year. You may also make your own contributions
into your HSA account up to the contribution limits. Individuals who are age 55 or older can make an
additional “catch up” contribution of $1,000.

You will make your HSA contributions via wage reductions on a federal pre-tax basis. That means
your contributions are not subject to federal withholding for income tax, Social Security, and
Medicare taxes. Most states allow employees to make qualified HSA contributions on a pre-tax
basis for state tax purposes. However, certain states such as Alabama, California, and New Jersey
tax laws provide that HSA contributions are subject to state income and employment taxes. You
should talk to a tax advisor to understand how HSA participation may impact you and your family
members from a tax perspective. Another helpful resource is IRS Publication 969, Health Savings
Accounts and Other Tax-Favored Plans (www.irs.gov/publications/p969).

6