Gearing Up for Annual Enrollment: How Do You Decide Which Deductible Plan is Right for You?

As annual enrollment nears (April 1 - 30), it's time to start reflecting on the different deductible plans offered through Heartland's AEA’s health insurance coverage. 

Consider the following: 

• When considering which deductible plan you want to participate in, you should consider the deductible amount, premium costs and if you have any expected medical expenses (e.g., having a baby or major surgery). No matter which deductible you choose, there is absolutely NO difference in the actual coverage(s) provided by the Blue Choice plans offered to you. 

• If you pay $617.57 per month for the $750 deductible family plan vs. $540.28 per month for the $1,500 family deductible plan, you would want to consider the cost savings towards your premium. But you would also want to consider that on the $750 deductible family plan, it is $750 per person or $1,500 per family towards the deductible, and on the $1,500 deductible plan, it is $1,500 per person or $3,000 towards the deductible. If you don't have any major medical procedures planned, and everyone covered under your plan is in reasonably good health, then you might consider the $1,500 plan because you would save premium dollars, and you would also receive a Health Reimbursement Arrangement (HRA).

• If anyone covered under your plan needs to have any major medical procedures or regularly meets your deductible under the $750 deductible plan, then you might consider the savings provided by the lower deductible yet at a higher cost to you. 
• If you are considering the single health plans (which are provided by the Agency at no cost to you), which both provide the same coverage, you would want to consider the deductible of $750 ($1,500 out-of-pocket maximum) vs. $1,500 deductible ($3,000 out-of-pocket maximum) and that you would receive an annual HRA with the $1,500 deductible plan only in the annual amount of $681.96. 

• The HRA is a 100% contribution by Heartland AEA into an HRA account for you if you choose a $1,500 deductible health plan. Contributions are made in quarterly deposits, you can use this money to be reimbursed for your and/or your spouse and/or dependents’ out-of-pocket vision, medical, dental and/or prescription expenses, regardless of whether you have single or family coverage. Since it is a Health Reimbursement Arrangement, you are unable to take the funds with you when you terminate your employment with Heartland AEA, unless you take a bona fide retirement from the Agency (which basically means receiving IPERs). Quarterly deposits will be made into an account with 121 Benefits, the Agency’s HRA administrator. When you submit your claims, if there is money available in your account, you are reimbursed. If you submit more than is in your account, then every quarter when a deposit is made, you are reimbursed until the claim has been paid in full. The balance rolls over annually, as there is no longer a cap on the maximum rollover amount, effective Jan. 1, 2019.   

As always, contact Juliette Houseman, Benefits Specialist, if you have any questions.