HDHP & HSA's - corportate strikes again!

celeste

Anyone have a HDHP softened by HSA, the newest rave in health care benefits yet? Corporate just came for a visit last week and that is where we are going in January - $2600 single/$5150 family. This is a non-union manufacturing facility and my employees are not happy campers. I was just wondering if anyone else offers this.

The big thing that is concerning everyone here is what the legislation is slated to do in Jan 06. The fact this is a transition relief year still gave no real hope to our people. The look at the Rx drug changes in 06 is a devestating change that we are doing tomorrow.

Help! Advice for words to soften the blow. Doesn't it suck to have to smile and try to make things look positive that have a negative impact on you as well.

irenesmsaclaims

The high deductible and out-of-pocket aspects of the HDHP and an HSA are scary on the surface, but there are so many really good benefits to this arrangement. The balances carry over from year to year, the money can be used for non-medical expenses (taxed), there is no "use it or lose it", anyone can contribute (employer or employee, or even someone else!). Contributions as well as distributions are tax free.

If I were you, I would study this legislation and emphasize the positive attributes, which are many, to the employees. Granted, it is rather complicated, but maybe you can boil it down to the very real tax benefits. The HDHP is much cheaper than a traditional health plan, and the money they contribute is their money to use in more than one way. It can be also be run through a cafeteria plan.

karene

Hang in there, Celeste! We went with an HDHP/HSA last year and are generally pleased with the arrangement. In fact, our CEO doesn't see us ever changing!

We currently pay the single premium for the HDHP and contribute $1500 to the HSA. The deductibles are $2250/$4500. Although not many employees with 2-person or family coverage contributed the balance of the deductible to their HSA, I anticipate that that will change in 2005. Most of the single coverages did contribute the balance to their HSAs.

We are doing a survey right now of employees regarding their experience this past year with the plan. One employee told me that she thought it was the end of the world last year when we switched but now she thinks it is great. Of course, the healthy ones love it! The employees with 2-person and family coverage are not thrilled with it. If we contributed more to their HSAs than we do to the single coverages, I think they would feel differently. But we have always just paid for single coverage for employees, so that will never change!

celeste

I have researched the legislation in depth and know everything it has to offer. The problem here is our employees are paid just over $11 per hour and many of them are single parents. We went the max on the deductibles, $2600/$5150. The original plan that was announced was for the company to make no contributions to the HSA. After many phone calls from me, our Plant Mgr and other management members from the other facility within our corporation, our CEO finally revisited the problem. Points we tried to make to them were, #1 When you look at their annual income after taxes, the $5150 takes around 1/3 of their income. #2 The rate for some employees is $30/wk since our premiums are based on your rate of pay. #3 Granted our employees can deposit the difference of $20/wk but most can't afford to deposit any additional funds. #3 We offered HRA last year so some employees actually have an increase of $20/wk going to this plan. He finally decided to deposit $200/$400 to at least cover the $3.25/mthly bank charge for accounts with balances under $1000 and a small start.

I understand all the positive aspects of the plan. We are an automotive supplier and have tried to explain givebacks and rising cost of raw materials to our employees but the still think of this company as a "cash cow." Just 2 yrs ago, they were paying $14/wk for family plan with a $200 deductible. We seperated from a large company and are now privately held so they think our CEO and his partners are just greedy. (Some of which is true although you guys are the only people I would ever say that to.)

Sorry for the long story. It has been a long week and I just need to vent. I have so many devestated people on my hands, you know how it brings you down. I really don't think there is a positive way to discuss this with them, it's too soon to even try. Most of these folks have been here for 10-17 years, the newer employees are just going with flow. Thanks for listening!