Kansas Department of Administration

12-P-009 Addition of New Health Savings Accounts/Medical Deduction Codes

Posted on October 21, 2021 at 12:49 PM by Kansas Department of Administration

DATE: October 5, 2011
SUBJECT: Addition of New Health Savings Accounts/Medical Deduction Codes
EFFECTIVE DATE: Pay Period Beginning December 11, 2011; Ending December 24, 2011; Paid January 6, 2012
CONTACT:

Earl Brynds

 

(785) 296-5376

 

Earl.Brynds@da.ks.gov

 

APPROVAL:

Nancy Ruoff

(Original Signature on File)

SUMMARY:

Addition of New Health Savings Accounts/Medical Deduction Codes and Other Changes for Group Health Insurance Plan Year 2012


For plan year (PY) 2012, the Health Care Commission approved the addition of a new Health Savings Account (HSA) benefit option for each employee participating through the State of Kansas health insurance program in a Qualified High Deductible Health Plan (QHDHP) and making the required employee contribution to a Health Savings Account. In addition to the current QHDHP’s offered by Coventry Healthcare and United Healthcare, employees will be eligible to enroll in a new QHDHP offered through Blue Cross. SelectAccount is the custodian for Blue Cross participants.

Another major change for PY 2012 is Preferred Health being merged with Coventry. Current Preferred Health HSA and medical deduction codes will not be valid and will no longer be used in PY 2012. Members in prior Preferred Health HSA plans will be converted to Coventry HSA plans during open enrollment. Any adjustments made to previous Preferred Health HSA and medical deduction codes will be reported and remitted to Coventry.

For all three QHDHP benefit options, the HSA annual employer contribution amounts for full-time employees will be $900 for single coverage and $1350 for dependent coverage. For part-time employees, the HSA annual employer contribution amounts will be $675.12 for single coverage and $1012.56 for dependent coverage.

For all employees except 9-month paid employees at Regents Institutions, the agency GHI composite rate cost for the QHDHP benefit options will be reduced by the amount of the HSA employer contribution and the HSA employer contribution will be added as a flat employer contribution to the FSA benefit setup tables in SHARP. Both GHI and HSA employer contributions will be charged to Account Code 519500.

For 9-month paid Regent employees (16 deductions), the HSA employer contribution cost will be paid by the agency in addition to the full agency GHI composite rate cost. Regent agencies will then request a journal voucher reimbursement of the amount of their agency HSA employer contributions from KDHE, Division of Health Care Finance on a monthly, quarterly, or annual basis.

To accommodate the new HSA plan, new deduction codes will be added in SHARP effective for the payroll period beginning December 11 and ending December 24, 2011, paid January 6, 2012.

The new Medical and HSA deduction codes for Blue Cross are:

 

PLAN TYPE DEDUCTION CODE
DESCRIPTION
SHORT DESCRIPTION
10
BCCCAD
BCBS - Plan C - AT - NTU Disc MedNTUDisc
10
BCCCAT
BCBS - Plan C - AT - TU NoDisc Medical
10
BCCCBD
BCBS - Plan C - BT - NTU Disc MedNTUDisc

10

BCCCBT
BCBS - Plan C - BT - TU NoDisc Medical

 

All employees except Regent 9-month:

 

PLAN TYPE DEDUCTION CODE
DESCRIPTION
SHORT DESCRIPTION
6Y
HSASBL
BCBS-Health Sav Acct-Single-FT HSA-Single
6Y
HSASBX
BCBS-Health Sav Acct-Single-PT HSA-SglePT
6Z
HSADBP
BCBS-Health Sav Acct-Dep-FT HSA-Depend
6Z
HSADBX
BCBS-Health Sav Acct-Dep-PT HSA-DepPT

 

Regent 9-month (16deductions):

PLAN TYPE DEDUCTION CODE
DESCRIPTION
SHORT DESCRIPTION
6Y
HSXSBL
BCBS-Health Sav Act-Sgl-FT16 HSA-Sing16
6Y
HSXSBX
BCBS-Health Sav Act-Sgl-PT16 HSA-SgPT16
6Z
HSXDBP
BCBS-Health Sav Acct-Dep-FT16 HSA-Dep16
6Z
HSXDBX
BCBS-Health Sav Acct-Dep-PT16 HSADepPT16

 

The Office of General Services, Payroll Services Section will remit the employee and employer monies to SelectAccount for all agencies.

The Office of General Services, Payroll Systems Team will make changes to the SHARP payroll system to implement the new Health Savings Account benefit option/new deduction codes. Regent’s institutions are responsible for ensuring that the new Health Savings Account benefit option/new deduction codes are available in their individual systems. In addition, Regent’s institutions should be prepared to test their benefits interface and payroll files for the new deductions by November 1, 2011.

MJ:NTR:ewb

Comments
There are no comments yet.
Add Comment

* Indicates a required field

© 2022 Kansas Department of Administration. All rights reserved.