Dassault Systè mès 2015 Enrollmènt

Transcription

1 Dassault Systè mès 2015 Enrollmènt Frequently Asked Questions October 22, 2014 MEDICAL PLANS 1. What is a Consumer Directed Health Plan (CDHP)? CDHP is a term given to medical plans that embody the principles of consumerism the idea that if consumers are aware of the cost of health care and are responsible for managing that cost, they will be more conscious of the price, quality, and overall spending. The Health Investment Plan is a CDHP. A CDHP generally has lower per paycheck contributions, a higher annual deductible, and a higher out-of-pocket maximum than traditional health plans. They are referred to as high deductible health plans in tax law, which sets certain requirements for this type of plan and allows plans that meet those requirements to offer Health Savings Accounts. 2. Why are companies moving toward consumerism in health care? Government Health Care Reform mandates, more frequent job transitions, and longer life expectancies have resulted in more companies offering CDHPs like the Health Investment Plan. 3. What is a deductible? A deductible is the annual amount you must pay for eligible expenses before the plan starts paying benefits. 4. What is the difference between copays and coinsurance? Copays are a fixed dollar amount that you pay each time you receive health care services. Coinsurance is a percentage of the cost you pay for health care services, typically after you meet your annual deductible. For example, in the Copay Plan and the Coinsurance Plan, your pay between $20 to $35 for your copay, depending on your plan, each time you visit your doctor for care (except for preventive care). Copays do not apply under the Health Investment Plan. Instead, after the deductible is met, you pay a percentage of the cost of care. For a doctor s visit, you pay 10% of the cost. Therefore, if a doctor s appointment costs $200, you pay 10%, or $20, and Dassault Systèmes will pay 90%, or $180. However, remember you pay 100% of the cost of care, whether in- or out-of-network, until your annual deductible is met. In the example above, this means if you had not previously met the deductible, you would pay $200 for the office visit.

2 Page 2 5. What is the out-of-pocket maximum? The Health Investment Plan has a built-in protection mechanism the out-of-pocket maximum that limits your out of pocket costs each year. When the amount you pay for the deductible and coinsurance reaches this out-of-pocket maximum, the plan pays 100% of eligible charges for the rest of the year. 6. Is preventive care covered under the Health Investment Plan? Yes, under all the options, including the Health Investment Plan, preventive care is covered at 100% in network, with no deductible, copayment or coinsurance. 7. What is considered preventive care? Preventive care is generally considered to be an office visit to a provider for the purpose of maintaining health rather than to diagnose or treat a specific medical condition. These visits are typically the regularly-scheduled, periodic visits often referred to as annual physicals, well-child care, age appropriate screenings and well woman visits. Services received in the office during these visits are typically considered preventive as well. 8. Are both network and out-of-network services covered under the Health Investment Plan? Yes, you may use both network and out-of-network providers. However, you ll pay less out of pocket (through a lower deductible and coinsurance) when you use network providers. 9. Why might I choose the Health Investment Plan? People are typically attracted to the Health Investment Plan because it offers the opportunity to save for long-term medical expenses, tax-free, through the Health Savings Account. And because it requires lower contributions for coverage than the Copay Plan, many like to contribute the amount they would otherwise pay for more expensive coverage to the HSA. That way, the money is available if they need it to pay their deductible or saved for a future year if they don t. Only the Health Investment Plan includes a Health Savings Account that offers: Contributions from 3DS to your account, whether or not you contribute: Dassault Systèmes will contribute over half the network deductible amount to your HSA. In addition, you can make optional contributions to an HSA. When you do, your contributions are deducted from your pay before taxes are deducted. Opportunity to save for future health care expenses: The HSA gives you the control of deciding whether to pay out-of-pocket for expenses now, to save for other eligible health care costs in the future. A triple tax advantage. Like 401(k) contributions, HSA money is tax-free when it enters the plan and when it grows through investment earnings. But unlike a 401(k) balance, HSAs offer a third tax advantage: money remains tax free when it is withdrawn as long as you use it to pay eligible health care expenses.

3 Page 3 Immediate ownership. All contributions to your HSA, including contributions from Dassault Systèmes, are immediately yours to keep. No risk of forfeiture. Any unused amount at the end of a plan year rolls over to the next year. Unlike Flexible Spending Accounts, there is no use it or lose it rule. Portability. If you change plans, retire or leave 3DS for any reason, you keep your account balance. (Administrative fees may apply if you leave the Company.) Investment options. Once you reach a certain balance in your HSA, you can choose from the account options for investing your balance. Interest and investment earnings are also tax-free. Easy withdrawals. Your HSA is your own personal account. Unlike an FSA, you do not have to file a claim for reimbursement. 10. Will I lose benefits if I switch to the Health Investment Plan? The services covered by each of our plans are exactly the same; there s no type of care covered under one plan but not another. All three plans also have the same provider network, so you do not have to change doctors if you switch plans. The biggest difference, if you switch to the Health Investment Plan, is meeting the deductible for all non-preventive expenses (including most non-preventive prescription drugs) and paying coinsurance. However, keep in mind you can use your HSA to pay these expenses. 11. Does the Health Investment Plan offer the same negotiated rates that are in place with the other two medical plans 3DS offers through BCBS of Massachusetts? Yes, the Health Investment Plan also is managed by BCBS of Massachusetts. The negotiated rates are the same regardless of what plan you enroll in. 12. Can I still enroll in the MetLife dental plan or VSP vision plan if I choose the Health Investment Plan? Yes, the Health Investment Plan is a medical plan only, and enrolling in it does not impact your dental or vision coverage. You still have access to the same plans that 3DS offers, but have the extra advantage that some of your out of pocket dental and vision expenses may qualify and can therefore be paid with HSA dollars. 13. What happens if I choose the Health Investment Plan for 2015, and then change my mind and enroll in another plan during Open Enrollment for 2016? No problem. You can still use the HSA to pay for qualified medical expenses, or let the taxfree investment grow. However, you will not be able to make any additional contributions to the HSA while enrolled in a non-qualified plan. If your HSA balance is below $2,500 and you no longer participate in the Health Investment Plan, you may be responsible for any account maintenance fees.

4 Page 4 HSA HSA General/Rules 14. What is a Health Savings Account (HSA)? An HSA is a valuable feature of the Health Investment Plan. The HSA allows you to set aside pre-tax money to pay for certain qualified health care expenses, such as coinsurance and deductibles. Unlike a Health Care Flexible Spending Account, the company may make a contribution to your HSA. An HSA can only be offered when paired with an IRS-qualified CDHP, like the Health Investment Plan. 15. Are monthly fees associated with the HSA? Yes, but, as long as you are enrolled in the Health Investment Plan, Dassault Systèmes will pay the monthly account maintenance fee. If you leave the plan or leave Dassault Systèmes, you may be responsible for any account maintenance fees. 16. Does the HSA roll over every year? Yes. Any unused HSA funds can be rolled over year after year, with no limits. This is a significant additional benefit when compared to traditional Flexible Spending Accounts (FSAs). The money you and Dassault Systèmes contribute to your HSA is yours to keep. 17. What happens if I leave Dassault Systèmes? All HSA funds are yours to keep, even if you leave the Company. 18. If I leave the Company, will there be any costs associated with continuing the Health Savings Account through Health Equity? Yes, Health Equity will charge a monthly administrative fee of $3.95 for anyone with an HSA balance below $2,500. The monthly fee is waived for those with balances above $2, When can I start investing the funds in my Health Savings Account? Once you reach a balance of $2,000 in your HSA, you can choose from the account options for investing your balance. You must maintain at least $2,000 in order to participate in the investment options. Interest and investment earnings are also tax-free. Currently, Health Equity offers 39 different options. 20. If the balance in my Health Savings Account reaches $2,000, do I have to invest the money? No, you are never required to invest any of the money in your Health Savings Account, but it is an option for you.

5 Page Are any tax forms required for Health Savings Accounts? If so, who will provide the forms? Yes, Form 8889 must be filed with your taxes. Health Equity will mail Form 1099-SA to you in late January. The Company will also provide a W-2. The information on both forms can be used to populate IRS Form Can I use all my HSA funds (from 3DS and my annual contribution) in January, as I can with my FSA? No, unlike an FSA, you have access only to the balance that is in your HSA at any given time. HSA Funding 23. Does Dassault Systèmes contribute to my HSA? Yes, in 2015 Dassault Systèmes will automatically contribute an amount equal to more than half of the annual deductible to your HSA as follows: Single coverage: $750 Family coverage: $1,500 (Note: family coverage includes employee + spouse and employee + children coverage) If you are hired mid-year, contributions from Dassault Systèmes are prorated. 24. How much can I contribute to my HSA? Employee contributions are optional. If you contribute, the maximum annual pre-tax amount you and Dassault Systèmes combined can contribute to your account is dictated by the IRS. For 2015, the limits are as follows: Coverage Level IRS Combined Maximum for 2015 Dassault Systèmes Contribution Amount You Can Contribute* Single $3,350 $750 $2,600 Family $6,650 $1,500 $5,150 *Employees who will be age 55 and older in 2015 may contribute an additional catch-up contribution of up to $1, How much should I contribute to my HSA? Ultimately, you should contribute an amount you re comfortable with. It may be advantageous to contribute the annual maximum to your HSA to realize the full savings and investment features. Remember, there is no use it or lose it. What you and Dassault Systèmes contribute is yours to keep.

6 Page Can I change my HSA paycheck contribution throughout the year? Yes, you can adjust your paycheck contribution amount at any point during the year. This is different from your medical Flexible Spending Account because, with an HSA, you do not need to have a qualifying event to make a change. 27. When do I receive the Dassault Systèmes contribution in my HSA? You will receive the Dassault Systèmes contribution in one lump sum in January If I participate in an HSA, can I still contribute to a Health Care FSA? What about a Dependent Care FSA? You cannot participate in both the HSA and a Heath Care FSA when you participate in the Health Investment Plan. However, participating in an HSA does not prevent you from participating in a Dependent Care FSA. HSA Using your HSA 29. How do I access my HSA funds to pay for medical expenses? When you enroll in the HSA, you will receive a debit card from Health Equity, a BCBS of Massachusetts partner, which will allow you to use your HSA funds at health care providers and vendors that accept debit cards. You can also have Health Equity directly pay a provider or request reimbursement for expenses you paid out of pocket through the Health Equity online system. 30. What are considered qualified expenses for the HSA? Qualified health care expenses, including medical, dental and vision expenses, are defined by the IRS. You can see a complete list of qualified expenses that can be paid for with HSA funds here. 31. Can I pay for the Health Investment Plan premium from my HSA? No. You cannot use your HSA to pay your medical plan monthly premiums. These contributions are already withheld from pay on a before-tax basis. 32. Can I use HSA funds to pay for Long-Term Care expenses or COBRA premiums? Yes, qualified medical expenses include the premiums for Long-Term care coverage and COBRA premiums. In addition, other Long-Term care expenses other than the premium are considered a qualified expense.

7 Page If I cover a dependent on my medical plan but he/she is not my tax dependent, can I use my HSA funds to pay for his/her medical expenses? No. Your HSA funds can only be used to pay expenses that are incurred by you, your spouse, or your tax dependent. If you cover a dependent under the Health Investment Plan who files his/her own tax return, he/she cannot use funds from your HSA. However, the dependent can choose to open his/her own HSA to pay qualified medical expenses. 34. What if one of my dependents has other medical coverage through another plan or through Medicare? Can I still make contributions to an HSA? Yes. As long as you (the employee), do not have other medical coverage, you can open an HSA and make contributions to the account. 35. What if I use my HSA funds for non-qualified expenses? If you use funds in your HSA to pay non-qualified expenses, income taxes plus a 20% penalty tax will apply on the funds you use. If you are over age 65, no penalty tax will be assessed on non-qualified expenses, but income taxes will still apply. 36. If I pay for an expense out-of-pocket, how long do I have to reimburse myself from my HSA? There is no time limit for reimbursement. As long as your account was open at the time a qualified expense was incurred, you can reimburse yourself through your HSA even if it is years later. You just need to be sure that you have the receipt (in case you are audited by the IRS) and that the expense has not already been previously reimbursed. 37. Can I use my HSA funds for out-of-country expenses? Yes, HSA funds can be used for medical expenses received outside the United States, so long as they are considered to be qualified expenses as defined by the IRS. You can see a complete list of qualified medical expenses that can be paid for with HSA funds here. HSA Health Equity 38. Who is Health Equity and how long have they been in business? Founded in 2002, Health Equity is the nation s oldest and largest health savings trustee. BCBS of Massachusetts has chosen to partner with Health Equity for administration of their HSA accounts. 39. Do I have to use Health Equity as the Administrator for my Health Savings Account? No, you can set up a Health Savings Account with any administrator you would like. However, you will not receive the DS HSA contribution and will be responsible for the monthly administrative fee.

8 Page Are the funds in the Health Equity investment options FDIC insured? It depends. All accounts with balances under $2,000 are invested in FDIC insured savings accounts. Once you have a balance of $2,000 in your HSA, you have the ability to invest in mutual funds, if you choose. FDIC insurance does not cover investment products such as mutual funds. CHOOSING A PLAN 41. What tools does Dassault Systèmes offer to help me decide which plan is best for me? The Health Investment Plan offers attractive features and is worth considering. However, it might not be the right plan for everyone. To help you compare your options and estimate your out-of-pocket costs, we provide: 3DS Rewards Web Site: This site includes plan details, comparison charts, forms, links to vendor Web sites, and contact information, as well as special interactive tools designed to help you select the package of benefits that makes the most sense for you and your family. To get started, simply go to Medical Plan Cost Estimator: This tool will allow you to estimate your out-of-pocket expenses for the coming year to see which plan might offer you the best value. You can also use the tool to help determine how much to set aside in an HSA or medical FSA. Employee Decision Video: In this short video, 3DS employees talk about the medical coverage they elected for 2014, why they chose that plan and what resources helped them make an informed choice. Watch the video at How can I estimate my tax savings and potential account balance over time in the HSA? The Medical Plan Cost Estimator offered by BCBS of Massachusetts will allow you to estimate your out-of-pocket expenses for the coming year to see which plan may offer you the best value. You can also use the tool to help determine how much to set aside in a Health Savings Account or Health Care Flexible Spending Account. and understand the short and long term benefits of participation in a personal spending account.