Part I: Decide Whether or not to Enroll in the Consumer Driven Health Plan (CDHP):

A.   Understand the Two Main Components of a Consumer Driven Health Plan

• Consumer Driven Health Plan Presentation
• Consumer Driven Health Plan Overview

B.   Review the CDHP Plan Benefits

On the Benefits Enrollment page of the HR website, you will be able to link to:

• a chart that compares CDHP provisions to the other medical plans
• the Medical Details Section of the Health Plans Summary Plan Description for more in-depth plan information

C.   Ensure You are Eligible to Establish a Health Savings Account

To be eligible to make contributions to a Health Savings Account, you must be enrolled in the CIGNA Choice Fund HSA medical plan and not be covered by another health plan that provides first dollar coverage (that is, which is not a high deductible plan) such as your spouse’s medical plan, a Full-purpose FSA or Medicare.  Additionally, you may not be claimed as a dependent on someone else’s tax return.  To determine if you are eligible to have a Health Savings Account you are advised to talk to your tax advisor and review the following documents:

• http://www.irs.gov/pub/irs-pdf/i8889.pdf#search=%228889%22 (see page 1, eligible individual section)
• http://www.irs.gov/pub/irs-pdf/p969.pdf#search=%22969%22 (see page 2, “Qualifying for an HSA”)

D.   Be Aware of Restrictions if also Covered by a Health Care Flexible Spending Account (FSA) Plan

• Generally, coverage under your or your spouse’s FSA will cause you to be ineligible for an HSA since the FSA is considered a health plan without a high deductible.
• However, you or your spouse may be covered under a Limited Purpose FSA (LP FSA) and you will still be eligible for an HSA.  An LP FSA reimburses only medical expenses that exceed the medical plan deductible and / or are for dental or vision services (see the Flexible Spending Account Summary Plan Description on the HR website for more information).

Caution:  If you are covered under a Full Purpose FSA (not an LP FSA) that has a “Grace Period” such as the DePaul FSA, and have a balance in that account as of December 31st, you will not be able to have contributions made to your Health Savings Account until April 1st of the following calendar year.

A “Grace Period” is a feature of an FSA that allows you to obtain services through March 15th and obtain reimbursement from amounts you contributed to the FSA in the previous year.  

If you or your spouse has established a medical Full-Purpose FSA with a grace period, you must have a zero (0) balance in the plan by December 31st to begin contributions and receive the employer contribution in January of the following year.

E.   Understand the Significant Tax Advantages

• DePaul University’s contributions to employees’ HSAs are not taxable and only become taxable if later used for non-qualified medical expenses.
• Employees’ contributions to their HSAs made through the DePaul University FSA Plan reduce taxable income in the year of the contribution and are taxed only if they are used for non-qualified medical expenses.
• Employees’ contributions made directly to their HSAs (and not through the DePaul University FSA are tax-deductible to the employees. 
• Earnings on all contributions are not taxed (unless used for non-qualified medical expenses).
• HSA account balances can accumulate year-to-year tax-free.
• Account distributions used for qualified medical expenses are not taxed.

Cigna offers a Pre-enrollment Information Line to help you learn about the benefits and advantages of choosing the Cigna Choice fund HSA. 

1-800-401-4041
(Monday through Friday 8am – 6pm)

If you decide to enroll, proceed to the Enrollment Section

Health Plan |Part I | Part II| Part III| Part IV| Part V