Kansas Department of Administration

15-P-016 Addition of New Health Reimbursement Accounts/Medical Benefit Plans and Deduction Codes (November 21, 2014)

Posted on 10/21/2021 at 12:50 PM by Kansas Department of Administration


Informational Circular No.

15-p-016


Effective Date:

Payroll Period Ending December 20, 2014

OSM Contact Name:
Earl Brynds

Ph:
(785) 296-5376

Email:
earl.brynds@da.ks.gov

 KDHE Contact Name:
Delos DeCelle
 Ph:
(785) 296-3667
 Email:
ddecelle@kdheks.gov
Approval: Nancy Ruoff
(Original Signature on File)

Summary:
Addition of new Health Reimbursement Accounts/Medical Benefit Plans and Deduction Codes and Other Changes for Group Health Insurance Plan Year 2015

The Health Care Commission has approved adding Aetna as a new medical vendor for plan year 2015.  In addition, beginning with plan year 2015, those employees enrolled in Plan C that are not eligible for a Health Savings Account (HSA) may now elect a Health Reimbursement Account (HRA).  A Health Reimbursement Account is an employer-sponsored plan that has similarities to both a Health Care Flexible Spending Account and a Health Savings Account. However, contributions are funded entirely by the employer - no employee contributions are permitted, the HRA is not portable and any remaining funds at the end of the year will not roll into the next plan year.

To accommodate the new medical vendor and the HRA option processing, the following new Plan Type (68) and Benefit Plans/Deduction codes are being added in SHARP effective 12/7/2014:

PLAN TYPE
BEN PLAN/DEDUCTION CODE
DESCRIPTION
SHORT DESCRIPTION
 10  AETABT Medical-Aetna Plan A
 Medical
 10  AETCBT Medical-Aetna Plan C
 Medical
 10  AETAAT Medical-Aetna Plan A  Medical
 10  AETCAT Medical-Aetna Plan C  Medical
 68  HRADR Health Reimb Acct-ER-Dep  HRA-ER Dep
 68  HRASR Health Reimb Acct-ER-Single  HRA-ER Sgl

  

For plan year (PY) 2015, the Health Care Commission has again approved making the employer contribution amount to an HSA and also an HRA benefit option in two equal installments.  The first installment will be made during the second pay period in January (January 16, 2015 paycheck date) and the second installment will be made during the first pay period in July (July 2, 2015 paycheck date).  This employer contribution will be processed in SHARP for each employee participating through the State of Kansas health insurance program in a High Deductible Health Plan (HDHP) and making the required employee contribution to an HSA, or if not eligible for an HSA is eligible for an HRA. For employees who still have a balance in their Health Care Flexible Spending Account on December 31, 2014, both the prorated bi-annual employer contribution and employee contributions will be delayed until after March 15, 2015.  Employee HSA contributions will continue to be deducted semi-monthly throughout PY 2015.  However, the January 2015 employee deductions will occur on the second and third paychecks of January.  All other employee deductions for 2015 will occur as normal on the first and second paychecks of the remaining months.

For both HDHP benefit options (Blue Cross and Aetna) for 2015, the combined total for both HSA (and HRA) bi-annual employer contribution amounts for full-time employees will be $1,500 for single coverage and $2,250 for dependent coverage. For part-time employees, the combined total for both HSA (and HRA) bi-annual employer contribution amounts will be $1,125.20 for single coverage and $1,687.60 for dependent coverage.  Prorated employer contribution amounts for all employees will be as follows depending on the month the employee is enrolled for coverage:

 

Fulltime

Single

Employee + dependent

Parttime

Single

Employee + dependent

January

$750.00

$1,125.00

January

$562.60

$843.80

February

$625.00

$937.50

February

$468.83

$703.16

March

$500.00

$750.00

March

$375.06

$562.53

April

$375.00

$562.50

April

$281.30

$421.90

May

$250.00

$375.00

May

$187.54

$281.27

June

$125.00

$187.50

June

$93.77

$140.63

July

$750.00

$1,125.00

July

$562.60

$843.80

August

$625.00

$937.50

August

$468.83

$703.16

September

$500.00

$750.00

September

$375.06

$562.53

October

$375.00

$562.50

October

$281.30

$421.90

November

$250.00

$375.00

November

$187.54

$281.27

December

$125.00

$187.50

December

$93.77

$140.63

 

For employees who are enrolled after the beginning of 2015 and for when a hire occurs in the middle of the month, the coverage begin date entered into MAP should be effective for the beginning of the month following 30 days from the date of hire and the appropriate bi-annual prorated employer contribution should also be processed effective on the first paycheck of that month.  For example, a new employee is hired on June 17, 2015 and enrolls in HSA.  The coverage begin date should be entered effective August 1, 2015 and the HSA prorated bi-annual employer contribution for August will be processed on their first paycheck in August.

 

For all employees, the agency GHI composite rate cost for the HDHP benefit options will continue to be reduced by the amount of the semi-monthly HSA/HRA employer contribution.  All GHI, HSA, and HRA employer contributions will be charged to Account Code 519500.

Beginning in 2015, a pared down list of valid benefit plans/deduction codes will be used for Health Benefit processing from the MAP Health Benefits system into SHARP.  The valid benefit plans/deduction codes listing is attached to this circular.  Regents should also use this list of valid codes when submitting their pay detail files to Payroll Services beginning with the January 2, 2015 paycheck.

The Office of Systems Management, Payroll Systems Team will make the necessary updates to the SHARP system for these changes.  Regent’s institutions are responsible for ensuring that the new medical deduction codes as well as the Health Reimbursement Account processing procedures are implemented in their individual systems effective for the payroll period noted above. 

 

Attachment
Printable version of 15-P-016

 

SG:NTR:ewb

 

 

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