Kansas Department of Administration

09-P-006 Addition of New Health Savings Accounts/Plan Carriers and Non-Tobacco User Discount (Supersedes 08-P-031)

DATE: October 3, 2008
SUBJECT:

Addition of New Health Savings Accounts/Plan Carriers and Non- Tobacco User Discount

EFFECTIVE DATE: Pay Period Beginning December 14, 2008; Ending December 27, 2008; Paid January 9, 2009
CONTACT:

Earl Brynds

(785) 296-5376

earl.brynds@da.ks.gov

APPROVAL: Image of approval signature.
SUMMARY:

Addition of New Health Savings Accounts/Plan Carriers and Non- Tobacco User Discount for Group Health Insurance Plan Year 2009

For Plan Year 2009, the Health Care Commission approved the addition of two new Health Savings Account (HSA) benefit options 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 offered through Coventry Healthcare, employees will be eligible to enroll in a QHDHP offered through Preferred Health Systems and United Healthcare. American Chartered Bank is the custodian for United Healthcare participants and HealthEquity is the custodian for Preferred Health Systems participants.

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, they will be $675 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 HSA benefit setup tables in SHARP. Both GHI and HSA employer contributions will be charged to Object Code 1950.

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 the Kansas Health Policy Authority on a monthly, quarterly, or annual basis.

To accommodate the new HSA plans, new deduction codes will be added in SHARP effective for the payroll period beginning December 14 and ending December 27, 2008, paid January 9, 2009.

The new deduction codes for Preferred Health Systems are:

All employees except Regent 9-month:

PLAN TYPE

DEDUCTION CODE

DESCRIPTION

SHORT DESCRIPTION

6Y HSASPL HSA-PrefHlth Sngl Cov/High Ded HSA-Single
6Y HSASPX HSA-PrefHlth Single Cov/PT HSA-SglePT
6Z HSADPP HSA-PrefHlth Depnd Cov/HighDed HSA-Depend
6Z HSADPX HSA-Pref Hlth Depend Cov/PT HSA-DepPT

 

Regent 9-month (16deductions):

PLAN

TYPE

DEDUCTION CODE

DESCRIPTION

SHORT DESCRIPTION

6Y HSXSPL HSA-PrefHlth Sgl Cov 16 cy EEs HSA-Single
6Y HSXSPX HSA-PrefHlth Sgl Cov/PT 16 cy HSA-SglePT
6Z HSXDPP HSA-PrefHlth Dep Cov/16 cy EEs HSA-Depend
6Z HSXDPX HSA-PrefHlth Dep Cov PT/16 cy HSA-DepPT

The Division of Accounts and Reports, Payroll Services Section will remit the employee and employer monies to HealthEquity for all agencies.

The new deduction codes for United Healthcare are below.

All employees except Regent 9-month:

PLAN

TYPE

DEDUCTION CODE

DESCRIPTION

SHORT DESCRIPTION

6Y HSASUL HSA- UnHlth Sngle Cov/High Ded HSA-Single
6Y HSASUX HSA- UnHlth Single Cov/PT HSA-SglePT
6Z HSADUP HSA- UnHlth Depend Cov/HighDed HSA-Depend
6Z HSADUX HSA- UnHlth Depend Cov/PT HSA-DepPT

Regent 9-month (16deductions):

PLAN

TYPE

DEDUCTION CODE

DESCRIPTION

SHORT DESCRIPTION

6Y HSXSUL HSA-UnHlth Sgl Cov 16 cy EEs HSA-Single
6Y HSXSUX HSA-UnHlth Sgl Cov/PT 16 cy HSA-SglePT
6Z HSXDUP HSA-UnHlth Dep Cov/16 cy EEs HSA-Depend
6Z HSXDUX HSA-UnHlth Dep Cov PT/16 cy HSA-DepPT

The Division of Accounts and Reports, Payroll Services Section will remit the employee and employer monies to American Chartered Bank for all agencies. The KPAYHSA2 remittance report for all three Health Savings Accounts is available in the agency MVS directories.

Effective 12/14/08, the following additions to the Fund/Index combination will be completed for the Department of Administration clearing fund for the new Health Savings Account Deductions:

AGENCY

FUND

 

INDEX

173

9051

9766

SHARP EE Index (United Healthcare)

173

9051

9866

SHARP Employer Index (United Healthcare)

173

9051

9767

SHARP EE Index (Preferred Health Systems)

173

9051

9867

SHARP Employer Index (Preferred Health Systems)

In addition, index code 9666 has been added to the STARS system for United Healthcare and index code 9667 has been added to the STARS system for Preferred Health Systems for each of the Regent’s Payroll Funds (98XX) to record the receipt of the new HSA options’ employer contribution by the individual Regent’s institutions. Attached is an updated copy of the “Index Codes for Agency and DOA Clearing Funds”. This document has been updated for the changes noted above and replaces the document issued with Informational Circular 08-P-031 dated May 7, 2008.

NEW CARRIER/PLAN ADDITIONS

For Plan Year 2009, the Health Care Commission approved United Healthcare as a new medical provider. Employees are eligible to enroll in United Healthcare for Plan A, Plan B and the QHDP. In addition, employees are eligible to enroll in the new QHDP now offered by Preferred Health Systems.

Effective 12/14/08, the following additions to the Fund/Index combination will be completed for the Department of Administration clearing fund for the new carrier and plans:

AGENCY

FUND

INDEX

 

173

7700

9787

SHARP EE Index (United Healthcare Plan A)

173

7700

9887

SHARP Employer Index (United Healthcare Plan A)

173

7700

9788

SHARP EE Index (United Healthcare Plan B)

173

7700

9888

SHARP Employer Index (United Healthcare Plan B)
173 7700 9789 SHARP EE Index (United Healthcare QHDP)
173 7700 9889 SHARP Employer Index (United Healthcare QHDP)
173 7700 9796 SHARP EE Index (Preferred Health Systems QHDP)
173 7700 9896 SHARP Employer Index (Preferred Health Systems QHDP)

 

The attached document “Index Codes for Agency and DOA Clearing Funds” has also been updated for the new index codes noted above. In addition, new deduction codes will be added in SHARP effective for the payroll period beginning December 14 and ending December 27, 2008, paid January 9, 2009. Attached is document “Deduction Codes for Group Health Insurance Plan Year 2009” showing the deduction codes established in SHARP for the new carrier and plans.

NON-TOBACCO USER DISCOUNT

For Plan Year 2009, the Health Care Commission approved a $ 20.00 per pay period non-tobacco user discount for all medical plans. Employees must complete a tobacco certification during Open Enrollment to receive the discount. To implement this discount, new deduction codes will be added in SHARP effective for the payroll period beginning December 14 and ending December 27, 2008, paid January 9, 2009. Attached is document “Deduction Codes for Group Health Insurance Plan Year 2009” showing the new deduction codes established for the non-tobacco user discount.

The Division of Accounts and Reports, Payroll Systems Team will make changes to the SHARP payroll system to implement the new Health Savings Account benefit options, new Carrier/Plans deduction codes and the new deduction codes for the Non-Tobacco User discount. Regent’s institutions are responsible for ensuring that the new Health Savings Account benefit options, new Carrier/Plan deduction codes and the new deduction codes for the Non-Tobacco User discount 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, 2008.

KEO:NTR:ewb
Attachments:

Index Codes for Agency and DOA Clearing Funds

Deduction Codes for Group Health Insurance Plan Year 2009

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