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

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:

All employees except Regent 9-month:

Regent 9-month (16deductions):

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