Part II: Enroll in the BlueEdge HSA Medical Plan and Establish a Health Savings Account (HSA)

A. Enroll in the BlueEdge HSA Plan

Use the on-line benefits enrollment application to sign up for the BlueEdge HSA (see the benefits enrollment link through Campus Connection; on the application, the plan is referred to as the "BC Consumer Driven Health Plan”). 

You will receive a BlueCross BlueShield Health Plan Identification Card in the mail after you enroll. You will also receive a welcome kit from Mellon Bank, with your HSA account number and information about your HSA.

B. Establish a Health Savings Account with ACS Mellon Bank (if necessary)

New Employees - After you enroll in the BlueEdge HSA on the Campus Connection Benefits Enrollment Application, submit an application for a Health Savings Account as described below.  Mellon Bank will process your application approximately two weeks after you enroll in the BlueEdge HSA Medical Plan.

Annual Enrollment - After you enroll in the BlueEdge HSA on the Campus Connection Benefits Enrollment Application, submit an application for a Health Savings Account as described below if you do not already have a Mellon Bank HSA. Mellon Bank will process your application approximately three weeks after annual enrollment closes.

To Apply for a Health Savings Account:

After you enroll in the BlueEdge HSA, you will receive a welcome kit from Mellon Bank, including your new account number and instructions to set up your account with Mellon.  You will also need this account number to extablish a pre-tax salary reduction from your pay (described below in task 'D'). 

To apply for an account, go to the on-line Health Savings Account application found on the www.hsamember.com website. In order to gain entry into the site and complete the on-line application, you will need your social security number and the account number on your welcome letter from Mellon Bank.  Once your Health Savings Account is established, you will receive a debit card in the mail for use with your account.

IMPORTANT: If you do not establish a bank account, DePaul University will not be able to make the employer contribution to your Health Savings Account and you will not be able to elect pre-tax HSA salary reductions from your pay. Additionally, you may forfeit your right to receive an employer contribution for the year.

Click here for a listing of fees associated with the ACS/Mellon HSA:  2009 Mellon HSA Fee Schedule

C. Understand the Contribution Possibilities Related to Your Enrollment in the Plan

The BlueEdge HSA combines a health/medical coverage plan with a Health Savings Account (HSA) to help your family and you invest in your well being. 

Once you enroll in the CDHP and open an HSA, DePaul will make a one-time contribution and you can make tax-free contributions into your HSA.   These contributions can be used to cover deductibles and co-insurance. Once you meet the annual deductible and co-insurance amounts, the plan pays for the rest. See Pages 22-30 of the Health Benefits Plans Summary Plan Description on the HR website https://hr.depaul.edu for more details on the BlueEdge HSA (Consumer Driven Health Plan). 

DePaul and Employee HSA Contributions

*Contributions are proportionally less when enrollment in the CDHP occurs after January 

Maximum Contribution Restrictions-Employees not HSA eligible for the entire plan year in which they are making contributions must be HSA eligible in December of the plan year and remain eligible for the next 12 months in order to make the maximum contribution.  If an employee is not eligible for the requisite period, then the employee will become subject to the 2006 rules and excess contributions will be subject to regular taxes as well as an excise tax.   You may want to review the IRS publications links listed below and / or consult your tax advisor before you increase your contributions.

http://www.treas.gov/offices/public-affairs/hsa/pdf/HSA-Tri-fold-english-07.pdf
http://www.treas.gov/offices/public-affairs/hsa/faq_contributing.shtml#hsa2

University Contributions:
DePaul University makes an employer contribution for all active full-time employees who enroll in the BlueEdge HSA Medical Plan.  The amount of these contributions is shown in the above chart.  Note:

• All of the contributions are intended to be made through the DePaul University Section 125 Cafeteria Plan.
• DePaul University pays the entire annual employer contribution to all participants as soon as administratively feasible following: (1) an employee’s plan entry date (plan entry dates are always on the first of the month) and (2) the employee’s establishment of an HSA with ACS Mellon Bank. 
• For those who do not receive an employer contribution as of their plan entry date due to not having established an HSA at ACS Mellon Bank, DePaul University will contribute a comparable amount, plus reasonable interest, based on each month that the employee was a comparable participating employee. 
• Contributions are based on the Medical Plan entry date regardless of when the Health Savings Account is actually established.
• Contributions are not made for COBRA participants.
• The University will make contributions only to the enrolled employee.  If an enrolled employee covers a spouse who is also a DePaul University employee, the spouse is not eligible for a contribution.
• Employees who become HSA eligible mid-year will receive a single lump sum contribution, calculated by taking the maximum annual employee contribution and pro-rating it by the remaining months in the calendar year.

Employee Contributions:
An employee’s Health Savings Account is only partially funded through University contributions.  Employees may also make pre-tax contributions via salary reductions (under the DePaul University Section 125 Cafeteria Plan).   Note:

• Participants may choose to fund their HSA up to the limits in the above chart directly to their HSAs rather than making pre-tax contributions through the university. Contributions made directly to an HSA can be taken as deductions on Form 1040.
• Employee contributions through salary reduction will only be allowed prospectively the first of the month after all three of the following requirements are met: 
  • The employee enrolls in the BlueEdge HSA medical plan option.
  • The employee opens a Health Savings Account with ACS Mellon Bank.
  • The employee completes the on-line HSA salary deferral election on benefits self-service thereby establishing the pre-tax deduction on the payroll system.
• Employee contributions amounts made through DePaul can be changed for any reason throughout the calendar year within the parameters of the above-mentioned limits.

D. Establish a Pre-tax Salary Deduction from Your Pay
You will be able to proceed with this task (establish a salary reduction contribution) only after:

• The Health Savings Account is established and you have an account number (Task ‘B’, above), and
• You are able to Confirm Your Enrollment on the Benefits Page of Campus Connection which means that your enrollment has been processed by Human Resources.   

Follow this process to complete the election of the contribution amount:

• Log on to Campus Connect by entering your user ID and password.
• Click on the "For Employees” menu item.
• Click on the "Employee Self Service” menu item.
• Click on the "Benefits" menu item.  Then click on the "HSA Plan Enrollment" icon.  Be sure the correct calendar year is shown, and then make your contribution election.
•   For annual Enrollment: complete your HSA Plan Enrollment after November 20th.

E. Making Mid-year Changes to Your Health Saving Account Contributions

You may change the amount of your Health Savings Account pre-tax deduction at any time. However, mid-year changes can not be made per the above process. Instead, you will have to print and complete the DePaul University Health Saving Account (HSA) Salary Reduction Election Change Form. The completed form must be submitted to Human Resources.

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