Administered by Anthem Blue Cross

The UC Health Savings Plan (HSP) is a high-deductible PPO (preferred provider organization) paired with a health savings account (HSA), a federal tax-free account maintained by HealthEquity, to help pay your out-of-pocket costs.

The IRS and UC have rules in place that limit who can enroll in this plan. Please see the eligibility rules below.

Compare costs and benefits for UC HSP with other UC plans.

2021 changes for UC Health Savings Plan and the Health Savings Account

There are no significant changes to benefits or cost-sharing amounts for 2021.

The Engage Wellbeing mobile app will be replaced by the Sydney Health Mobile App. Watch for more information about Sydney in January.

The individual contribution limit for the UC HSP Health Savings Account (HSA) set by the IRS each year will increase from $3,550 to $3,600. The family limit will increase from $7,100 to $7,200 (including UC's contribution).

If you are covering your domestic partner under this plan, both you and your partner can establish an HSA and you may both contribute up to $3,600 (for an individual HSA) or $7,200 (if you also enroll an additional family member) for the year. People age 55 and over can make an additional “catch-up” contribution of $1,000.

UC will continue to contribute to the HSA annually up to $500 for individual coverage and $1,000 for all other coverage. This one-time UC contribution to your HSA is based on your coverage level as of Jan. 1, and will not be adjusted midyear if your coverage level changes.

Learn more about the HSA and how the HSA works with UC Health Savings Plan below.

New ID and HSA debit cards

In late December, new plan members will get one ID card from Anthem that you’ll use beginning Jan. 1, 2021, for medical, prescription drug and behavioral health services. 

New plan members will receive their HSA debit card after their HSA is established. In accordance with government regulations, HealthEquity may require new plan members to provide documentation confirming their identity before establishing the HSA. Your HealthEquity debit card expires three years from the issue date; you will receive a new card before your old card is due to expire.

Best fit for you if:

  • You want direct access to most providers without a plan referral
  • You want federal tax-free savings for current and future health care costs
  • You are able to risk incurring greater out-of-pocket costs
  • You want to build savings for future health care costs for you and your eligible family members

Monthly plan costs for faculty and staff

Retiree plan costs chart »

Pay Band
(per annum)
Self Self +
Child(ren)
Self +
Adult
Family
$59,000 and under $22.97 $41.35 $50.31 $68.66
$59,001–$118,000 $61.15 $110.07 $137.47 $186.37
$118,001–$176,000 $100.33 $180.59 $215.58 $295.82
$176,001 and above $140.90 $253.62 $296.51 $409.20

Typical out-of-pocket costs

Once you've met the deductible, you pay:

  • Office visit/urgent care visit: preferred provider: 20%; non-preferred provider: 40%; (in-network preventive care has no charge)
  • Emergency room: 20%
  • Hospital stay: 20% in-network; 40% out-of-network
  • Prescription drugs: 20% if purchased from in-network pharmacy; 40% from out-of-network pharmacy

Understanding UC Health Savings Plan and the Health Savings Account

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Eligibility

The IRS and UC have rules in place that limit who can enroll in this plan. You are not eligible to enroll in UC HSP if you:

  • Are already enrolled in Medicare. Medicare eligibility usually begins at age 65 and you can be retroactively enrolled in Medicare Part A, unless you can postpone your Medicare enrollment. Medicare Part A is mandatory for those who receive Social Security income. Check with Social Security to determine your eligibility to postpone Medicare enrollment.
  • Are covering a family member who is enrolled in Medicare.
  • Are a retiree who was not enrolled in UC HSP while you were employed by UC. If you are enrolled in UC HSP when you retire, you may continue your enrollment in the plan as long as you are not enrolled in Medicare.
  • Are a retiree otherwise eligible for enrollment in UC HSP and you cover a family member who is enrolled in Medicare, unless you de-enroll your Medicare-enrolled family member from your coverage. 
  • Plan to enroll in, are covered under, or have an existing balance in a Health Flexible Spending Account (FSA). You may forfeit any unused funds in your UC Health FSA for 2020, including carryover funds, by faxing your signed, completed Health FSA Carryover Waiver Form to WageWorks by Dec. 31, 2020 at 888-866-3312.
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How the HSP plan works with the HSA

  • As an HSP member, you can use your HSA funds now to pay for your plan’s deductible and/or out-of-pocket maximum for all eligible health care expenses. For a complete list of eligible expenses, read the IRS Publication 502 on the IRS website. You can also save your HSA funds until you turn 65.
  • For your convenience, all your claims from UC plans under Anthem, VSP and Delta Dental will be sent to HealthEquity. Make sure you only request reimbursement for those claims that are incurred after you have established your HSA.
  • After you receive services, your provider will bill your plan (Anthem Blue Cross, VSP or Delta Dental). Your plan will send you an Explanation of Benefits explaining what’s covered, and your provider will send you an invoice for what you owe. If you choose to pay your invoice using HSA funds, you can:
    • pay your bill with your HSA debit card
    • pay your provider directly through the HealthEquity portal
    • use another method of payment and request reimbursement through the HealthEquity portal
  • When you fill or refill a prescription, the pharmacy will verify your coverage and prescription costs. You can choose to pay with your HSA debit card, pay for the prescription through the HealthEquity portal or use another method of payment and request reimbursement through the HealthEquity portal.
  • You can choose any doctor or hospital you wish, but services obtained from providers in the Anthem Blue Cross PPO network cost less.
  • Preventive care from in-network providers is covered at 100% without the need to meet your deductible.
  • For all other services and prescriptions, you pay 100% of the cost, until you meet the deductible.
  • Once you meet the deductible, you pay 20% for Anthem Blue Cross PPO network providers and 40% for out-of-network providers.
  • The in-network deductible is $1,400 for individual coverage and $2,800 for family coverage; the out-of-network deductible is $2,550 for individual coverage and $5,100 for family coverage.
  • Annual out-of-pocket maximums limit what you pay for covered services. If you reach the annual maximum, the plan pays 100% of your medical and prescription drug costs for the rest of the year. The maximums for in-network services are $4,000 for individual coverage, $6,400 for family coverage; out-of-network maximums are $8,000 for individual, $16,000 for family.
  • Behavioral health benefits from both in-network and out-of-network providers are provided by Anthem Blue Cross. Anthem in-network providers generally cost less, but you may also use out-of-network providers. Costs are included in your deductible and out-of-pocket maximums.

 

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The Health Savings Account

  • The Health Savings Account (HSA) by HealthEquity allows you to pay for your out-of-pocket health care expenses with tax-free dollars. You can use the funds at any time for qualified medical expenses or save them for future health care needs. For a complete list of eligible expenses, read the IRS Publication 502 on the IRS website.
  • You file claims directly with Health Equity. You can save your receipts or upload them to the HealthEquity website.
  • Your HSA has a “use-it-or-keep-it” feature, so your account balance rolls over annually and continues to grow tax-free.
  • The IRS sets the contribution limits each year. For 2021, it is $3,600 if you only cover yourself under the HSP and $7,200 if you cover at least one other family member. This contribution limit includes funds from all sources, including the UC contribution.
  • UC contributes to the HSA (up to $500 for individual coverage/$1,000 for all other coverage) and you can, too, with pre-tax payroll deductions, subject to payroll deadlines. Remember to reduce your total contribution by the amount UC contributes to your HSA to comply with the IRS. Individuals age 55 and older can make an additional "catch-up" contribution of $1,000 using the UPAY850 form PDF (employees only).
  • Retirees make after-tax contributions directly to HealthEquity and take the tax benefit when filing federal income taxes.
  • You own the account, so the money goes with you when you leave the HSP or when you end your employment with UC. You can continue to contribute to it as long as you are enrolled in a qualifying high-deductible health plan — even into retirement. You can also continue to use your funds for eligible health care expenses even if you can no longer contribute to the HSA.
  • When you’re ready to use your funds, you can take them out of your HSA without paying any federal taxes.
  • You earn interest on your account, and can invest any funds in excess of your $1,000 balance — the same way you invest funds in retirement savings accounts, except interest accrues federal tax-free.
  • Contributions and earnings are currently subject to California income tax.
  • You must have a valid Social Security number and U.S. address to establish your HSA.
  • If your coverage through UC Health Savings Plan begins any time after January, your HSA will be prorated for the calendar year based on this schedule. However, the plan deductible is not prorated. If you continue the plan the following year, you will receive the full HSA beginning January 1.
  • Here are a few things to keep in mind if you decide to become an HSP member. You are responsible in administering your Health Savings Account (HSA). As an HSA owner, you decide:
    • Whether you are eligible to make contributions to an HSA
    • The amount of the eligible contribution to the HSA for any calendar year
    • The withdrawal of any excess contributions
    • How funds in your HSA will be spent, and
    • Whether the distributions from your HSA are taxable or non-taxable.
  • You cannot delegate these responsibilities to either the University or to HealthEquity. Since as HSA owner you are in control of the HSA, you are responsible for reporting all contributions and distributions to the IRS on your Form 1040. If you make any errors and do not correct them timely, you must pay additional tax and/or penalties to the IRS.