Open Enrollment Presentation (PowerPoint)

2024 Health Plan Matrix (HDHP)

2024 Summary of Benefits and Coverage

2024 Summary of Mental Health and Substance Abuse Benefits

HSA Presentation from HealthEquity (PowerPoint)

You Have Another Option

Beginning with the 2024 benefit year, eligible full-time employees of Auburn University will be able to enroll in either a new High Deductible Health Plan (HDHP) with a Health Savings Account (HSA), or the current Preferred Provider Organization (PPO) plan. 

We invite you to take a few minutes to learn more about the HDHP plan that Auburn is introducing, along with the accompanying HSA. 

IMPORTANT: Auburn University will not provide specific advice or recommendations on whether you should choose an HDHP or PPO plan. Our role is to share information about these options so you can make an informed decision based on your individual needs and circumstances.

HDHP Basics
HDHP Premiums
HDHP Plan Design
HDHP FAQs
TigerMeds and the HDHP
HSA Basics
HSA Contributions
HSA FAQs
In Closing

HDHP Basics

Health Plan Matrix

HDHP Summary of Mental Health and Substance Abuse Benefits

An HDHP has lower monthly premiums than standard health plans. However, if you utilize an HDHP and need medical care, you will be responsible for a higher deductible than is typically associated with a standard health plan. (A deductible is the amount of money you owe for health care services each year before your insurance company begins to pay. Any money in your HSA can be used to pay the deductible.)

DID YOU KNOW?: For Auburn's HDHP and PPO plans, preventive care may be covered at no expense, even if you haven’t met your deductible. This can help you catch problems early and better manage your health.

Compare and Contrast

New HDHP Option (effective Jan. 1, 2024)

PPO (AU current plan)

Lower premiums

Higher premiums

Higher deductibles

Lower deductibles

Free preventive services

Free preventive services

Plan members can establish a Health Savings Account (HSA).

Plan members can establish or continue having a Flexible Spending Account (FSA).

HDHP Premiums

Depending on the employee’s salary, HDHP premiums rates will be 40% to 54% lower than the 2023 PPO rates. However, the HDHP features higher deductibles.

Select the appropriate tab -- Employee Only, Employee + Spouse, Employee + Child(ren), or Family -- to review the 2024 premium rates for Auburn's High Deductible Health Plan (HDHP) option.

These rates will be effective Jan. 1, 2024. Benefits deductions are made on a pre-tax basis, thus lowering your taxable income.

Pay Frequency

Employee Pays

Auburn Pays

Biweekly

$49.40

$197.61

Monthly

$107.04

$428.15

18-Pay

$71.36

$285.43

Pay Frequency

Employee Pays

Auburn Pays

Biweekly

$138.32

$553.30

Monthly

$299.70

$1,198.81

18-Pay

$199.80 

$799.21

Pay Frequency

Employee Pays

Auburn Pays

Biweekly

$93.86

$375.45

Monthly

$203.37

$813.48

18-Pay

$135.58 

$542.32

Pay Frequency

Employee Pays

Auburn Pays

Biweekly

$148.20

$592.82

Monthly

$321.11

$1,284.45

18-Pay

$214.07 

$856.30

HDHP Plan Design

 

In-Network Benefit

Preventive Care

The plan pays 100%

Deductible

Single - $2,500/Non-single - $5,000

Coinsurance

The plan pays 80% after the deductible is met.

Out-of-Pocket Maximum

Single - $5,000/Non-single - $10,000

HDHP FAQs

  • An HDHP, or High Deductible Health Plan, is a larger deductible, lower premium health insurance option available for your medical expenses. (A deductible is the amount of money you pay for covered health care services before your insurance plan starts to pay.)

  • Unlike traditional plans that often have copayments and lower deductibles, HDHPs require you to pay more upfront for medical services until you reach your deductible, after which the plan covers eligible expenses.

  • HDHPs usually have lower monthly premiums.

  • They also allow you to pair with a Health Savings Account (HSA) for tax advantages.

  • There are higher out-of-pocket costs until you meet the deductible. However, the HSA can help offset some of these expenses with pre-tax dollars.

Yes, both the HDHP and PPO plans will be administered by Blue Cross and Blue Shield of Alabama.

TigerMeds and the HDHP

If you choose to keep the current PPO plan, TigerMeds® will remain the same and prescription copays will continue as in 2023. But if you choose to enroll in the new HDHP, you will pay the full retail price for your prescriptions until you reach the deductible.

  • A limited amount of preventative medications will be covered under TigerMeds® prior to reaching your deductible. These include specific medications for heart disease, diabetes, blood pressure, cholesterol, contraception, bone density, respiratory diseases, SSRIs for depression/anxiety, as well as diabetic devices and supplies.

  • After you reach the deductible, TigerMeds®will kick in and prescription copays will return to previous amounts as in 2023.

  • The deductible is inclusive of both pharmacy and medical expenses.

HSA Basics

HealthEquity presentation (PowerPoint)

HSA Investment Guide

A Health Savings Account helps you pay for eligible medical expenses that are not covered by your insurance plan.

  • The account is owned by you, and not Auburn University.

  • Both you and the university are eligible to contribute to the HSA account. 

Triple Tax Benefits

HSAs offer triple tax benefits:

  • Contributions are pre-tax.

  • Earnings grow tax-free.

  • Withdrawals for eligible medical expenses are tax-free.

These benefits provide a way to save for healthcare costs while reducing your taxable income.

Examples of Eligible and Ineligible Expenses

Examples of Eligible Expenses

  • Most medical care that is subject to your deductible (copays, doctor visits, etc.)

  • Prescription drugs

  • Dental and vision care

  • Insulin (with or without prescription)

  • Flu Shots

  • Emergency room visits

ACA Preventive Drug List 

HSA Preventive Drug List

Additional information

Examples of Ineligible Expenses

  • Controlled substances

  • Cosmetic surgery

  • Medicines and drugs from other countries

  • Veterinary fees

  • Select insurance premiums

  • Nutritional supplements

Additional information

HSA Contributions

Select the appropriate tab -- Employee Contributions or Employer Contributions -- to review information about HSA contributions.

 

Employee HSA contributions are tax-free via payroll deductions. Unlike the FSA, an employee can change this monthly deduction throughout the year and contribute up to the following annual limits:

Account

Employee-only

Non-single

Annual Contribution Limit

$4,150

$8,300

  • The IRS treats any non-single contract as a family contract for deductibles, out-of-pocket expenses, and contributions.

  • Employees aged 55 and older can also contribute an additional $1,000 in “catch-up” funds each year.

Auburn will also contribute to the employee’s HSA. The employee must open their HSA account to receive this money and contribute at least $60 annually.

 

Employees making $40,800+ annually

Employees making less than $40,800 annually

Single

The employee will receive $250.*

The employee will receive $500.*

Non-single

The employee will receive $500.*

The employee will receive $1,000.*

* New HSA enrollments effective on or after July 1 will be prorated to 50% of the stated amount.

HSA FAQs

  • You must be covered under a qualified High Deductible Health Plan (HDHP).

  • You cannot:

    • Have other health coverage*

    • Medicare

    • Be claimed as a dependent on someone else’s tax return

* Other health coverage does not include specific disease or illness insurance, accident, disability, dental care, vision care, and long-term care insurance.

  • Anyone can contribute to your HSA – including an employer or family member.

  • Employee and employer contributions (including pre-tax salary deferrals) are not taxable.

Each year, the IRS sets contribution limits. These limits are for the total funds contributed, including company contributions, your contributions and any other contributions.

Item

Limit

Contribution maximum

$4,150 for single coverage

$8,300 for family coverage

Catch-up contribution maximum (ages 55 or older)

$1,000

Important to Note

  • For each month a person is HSA-eligible, they can contribute 1/12 of the applicable maximum contribution limit for the year.

  • The catch-up contribution limit is not adjusted for inflation and remains the same each year.

  • The contribution limit is not reduced for the year if the person turns 55 years old after Jan. 1.

 

In-Network Benefit

Preventive Care

The plan pays 100%

Deductible

Single - $2,500/Non-single - $5,000

Coinsurance

The plan pays 80% after the deductible is met.

Out-of-Pocket Maximum

Single - $5,000/Non-single - $10,000

No, you must be enrolled in an HDHP to be eligible to contribute to an HSA. Traditional health plans or other insurance coverage options do not qualify.

You can contact HealthEquity at 1-866-346-5800 or visit www.healthequity.com for additional information. (The phone line is available 24/7/365.)

In Closing

  • We will continue to update the website, along with our benefits website, with relevant and timely information.

  • We will share multiple communications about the HDHP before, during, and after Open Enrollment.

  • We will have benefit enrollers available to assist employees during Open Enrollment.

We look forward to answering your questions through these and other avenues as we progress toward Open Enrollment and the new plan year. 

Last updated: 09/04/2024