How the Regence HSA plan works

PSE offers the HSA plan to IBEW-represented and non-represented employees. The plan combines a high-deductible health plan with a tax-favored health savings account (HSA). You can use your HSA to help pay the deductible or other qualified out-of-pocket costs, or save it for future medical expenses.

Regence administers the health plan portion of the HSA plan while HealthEquity is the company that manages the health savings account portion. Regence and HealthEquity work together seamlessly so that you can pay your portion of your medical claims and pharmacy costs, either by using a debit card or by logging into your HSA account online.

  • Know the basics

    1. PSE puts money in your HSA account. Once you're enrolled and coverage begins, PSE will put money in the account on your behalf: $500 if you enroll in single coverage and $1,000 if you enroll in family coverage. Plus, you can add your own money, if you want to. Note: PSE’s contribution decreases to $250 for individual coverage and $500 for family coverage for employees with a benefits effective date of July 1 or later.
    2. Preventive care and some prescriptions are covered at 100%. The Regence HSA plan covers preventive care, like physicals and well-being exams, at 100%, with no deductible to pay. Certain prescriptions (for value-based drugs) are also covered at 100% with no deductible.
    3. Regence network doctors. You can see any medical provider you like, but you'll receive network discounts if you see providers in the Regence network. After you meet the annual deductible, the plan covers in-network services at 80% but out-of-network services are only covered at 50%
    4. Tax advantages. The money you contribute to your HSA is tax-free in three ways:
      • Tax free deposits: Contribute money directly from your paycheck on a pre-tax basis.
      • Tax free earnings: Earnings from your HSA investments are not taxed.
      • Tax free withdrawals: When you use your HSA money to pay for qualified medical expenses like deductibles, copays, and prescriptions, you don't pay any tax on the amounts you withdraw.
    5. Your HSA money rolls over to save for later, and you can take it with you. The money you and PSE contribute to your HSA is yours to keep, and it rolls over from year-to-year if you don't use it. You invest the money in your account, and you keep your account balance if you leave the company for any reason. You can even use your HSA to save for expenses after you retire. You just have to use the money for eligible medical expenses.
  • Am I eligible?

    Only IBEW-represented and non-represented PSE employees can enroll in the Regence HSA plan.

    In addition, there are Internal Revenue Service laws that govern who can contribute to a Health Savings Account. These rules are summarized below.

    You're eligible to contribute to a health savings account if:

    • You are covered by a qualified High Deductible Health Plan. The Regence HSA plan is a qualified HDHP.
    • You are not covered by any other health coverage, unless it is also a high deductible health plan. For example:
      • You can't be enrolled in Medicare Part A or B
      • You can't be enrolled in Tri-Care
      • You can't be covered on your spouse's health plan, unless it's also a high-deductible health plan
    • You are not claimed as a dependent on anyone else’s tax return
    • You do not participate in a health care flexible spending account (FSA) in the same calendar year that you contribute to a health savings account (HSA). This means you can’t contribute to an FSA, take reimbursement from, or even have a balance in a health care FSA.
    • Your spouse does not have a health care FSA, unless it’s a “limited purpose” FSA. This applies even if you don’t cover your spouse on your health plan.

    Domestic partners do not qualify as tax dependents under IRS rules, so you can’t spend HSA funds on a domestic partner’s expenses (or his/her children’s expenses). You can cover your domestic partner (and his/her children) on the health plan part of the HSA Plan, and you will receive the full employer contribution for family coverage into the HSA.

  • Contribution limits and qualified medical expenses

    How much can you save in an HSA? What can you spend it on?
    HSA contribution limits (employer + employee) in 2018 are as follows:
    • $3,450/individual coverage
    • $6,900/family coverage
    Subscribers age 55 or older can contribute an additional $1,000.
    Qualified medical expenses include medical, vision and dental expenses as well as certain services that aren't covered by your plan (like Lasik surgery and orthodontics, for example). The list of qualified medical expenses is the same list that applies to FSAs. Visit irs.gov/pub/irs-pdf/p502.pdf to see the full list.
  • Is the Regence HSA plan right for you?

    To help you evaluate whether the HSA plan would be right for you, weigh the advantages and disadvantages for your situation. Here are a few things to consider:

    • Compare the monthly costs (paycheck deductions) for each plan on PSE's enrollment site.
    • Consider the PSE contribution into the HSA account ($500 for individual coverage or $1,000 for family coverage).
    • Factor in the tax benefits of a health savings account.
    • Compare the deductibles, coinsurance or copays for the health plan you currently have with the HSA plan (see below).
    • Know that preventive care and value-based drugs are covered 100% with no deductible.
    • Understand that you'll pay the full cost of prescriptions and medical services (except for preventive care and value-based drugs) until you've met the deductible.
    • Review your past usage of health care services and prescriptions to estimate your costs under the HSA plan. Look at past Explanation of Benefit statements (EOBs), especially the "allowed amount" or "contract rate." That's the price you would pay (assuming you see network providers) until the deductible is met.
    • Use your health plan's tools, if available, to estimate costs. Regence.com offers a treatment cost estimator for medical services and OmedaRx provides prices for prescriptions.
  • The Regence HSA plan design

    Understand how the Regence HSA plan pays benefits.

    Annual Deductible

    $1,500 employee only, $3,000 employee + family

    If you are enrolled in family coverage, the full family deductible applies before the plan starts paying benefits.

    You pay the full deductible before the plan starts paying benefits (except for preventive care). You can use the money PSE contributes to help pay the deductible.

    Copays/Coinsurance In-network Out-of-network

    After you meet the deductible, the plan pays 80% for in-network providers and 50% for out-of-network providers.

    80% up to out-of-pocket maximum

    50% up to out-of-pocket maximum

    Out-of-Pocket Maximum

    $3,500 employee only, $6,900 employee + family

    If you are enrolled in family coverage, the full out-of-pocket maximum applies before the plan starts paying 100%

    Once you pay a certain amount of money during the year, the plan pays 100% for covered services for the rest of the year. This is called the out-of-pocket maximum.

    Preventive Care Visit

    100% covered, not subject to deductible

    Prescription Drugs Retail (30 or 90-day supply)
    At Participating Pharmacies
    Mail Order (90-day supply)

    Unlike other plans offered by PSE, you must pay the full cost of prescriptions until the deductible is met.

    Value-based drugs: Covered 100%, no deductible

    All other drugs: 80% after deductible

    Value-based drugs: Covered 100%, no deductible

    All other drugs: 80% after deductible

  • Talk to an expert

    • Call HealthEquity at 1-866-346-5800 (select option 4) to talk about HSAs
    • Call Regence at 1-866-240-9580 to talk about the Regence HSA Health plan's benefit details
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