Consumer-directed health plans (CDHPs) offer you an innovative solution for managing health care costs and engaging employees by strategically combining two key plan elements:

• A high-deductible-based health plan (HMO, open access, or PPO)
• Personal Spending Accounts (PSAs)

Changes to Rules for Pairing HSA/HRA with Medical Plans
Blue Cross Blue Shield of Massachusetts is limiting the number of medical products that qualify for a Health Reimbursement Arrangement claims feed. This change went into effect March 1, 2011.

In general, the feeds will be limited to products that have deductibles of at least $1,000. This change will not impact current claims feeds, but will apply to any new product pairings going forward. It is also recommended that employers fund only 50 percent or less of the deductible through a spending account.

Please review the Health Plan Personal Spending Account Options sheet for the updated product list that qualify for the HRA feed. The sheet also includes plans that are HSA qualified.

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  CDHP—Simplified

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  Benefits for You

• With Consumer Choice Blue, the benefits for your company are clear. Employees enrolled in a consumer-directed health plan are more likely to participate in wellness programs and are more likely to research health information¹, which may result in a healthier, more stable workforce. Over the long term, that can translate into lower health care costs for employers and employees.

  Benefits of Consumer Choice Blue

  • Deductible Structure offers lower premiums
  • Employees are empowered to make smarter health decisions with proactive health management tools, which may result in a healthier workforce
  • PSAs offer tax savings
  • Contributions to FSAs and HSAs are pre-tax for employees and generally not subject to employment taxes for FICA for employers
  • Disbursements from HRAs are tax-free for employees and are deductible for employers as a business expense
  • HSA deposits are tax-free
  • Members have a tangible incentive to get and stay healthy
  • Members gain greater control over their out-of-pocket costs
  • Low-cost access to preventive care can help prevent the development of serious conditions

  Is your organization ready for Consumer Choice Blue?

  • Download our CDHC Overview to see the benefits for your organization.
  • Download the Organizational Self-Assessment.

  ^1. "Consumer-Directed Health Plan: Consumer Perspectives," Blue Cross and Blue Shield Association 2007 CDHP Member Experience Report, December 2007.

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  Flexible Health Plan Options

• All of our health plans include the necessary preventive care, such as annual physicals and associated tests, to keep your employees healthy and productive; and all offer the flexibility to help you find a plan that meets your needs. Options for plan features include:

  • HMO, open access, or PPO plans
  • Massachusetts, New England, or national networks
  • A range of price points and benefit levels
  • Different levels of pharmacy benefits
  • Download a list of our health plan and personal spending account options.

  Want to get a quote?

  • Contact your broker or call our sales team at 1-800-422-3545.
  • Employer groups of fewer than 10 employees can request a quote online.
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  Spending Accounts: HSAs, HRAs, and FSAs

• Personal Spending Accounts (PSAs) are designed to financially engage employees as they make decisions about their health care and how to spend their health care dollars. Employees can use their PSAs to offset costs and plan for future health care needs. To maximize plan effectiveness, it is recommended that employers fund only 50 percent or less of the deductible through a spending account. Account options include:

  Health Savings Accounts (HSAs)

  • Similar to a 401k, an HAS can be funded by both employer and employee. Employees own the accounts and funds can be saved and invested for future years.
  • Federal rules restrict plan design options.

  Health Reimbursement Arrangements (HRAs)

  • Funds are owned by and contributed by the employer. The employer sets rollover and usage guidelines. Employers also have cash flow flexibility when funding the accounts.
  • Flexible plan design options.

  Flexible Spending Accounts (FSAs)

  • Can be funded by the employer and/or employee and offer employees a pre-tax benefit for health care, related transportation, or dependent care expenses. Funds must be used by year-end and employees can't take funds with them when they leave the company.
  • Can be combined with an HRA and, in limited cases, with an HSA.
  • Can be offered with any plan design, including non-deductible plans.

  What type of PSA is right for your organization?

  • Download our spending account and medical plan pairing guidelines.
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  Account Administrators

• Our relationships with account administrators help employers set up and manage Personal Spending Accounts for their employees.

  • Bank of America—Administers HSAs, HRAs, and FSAs. A Bank of America account provides competitive monthly fees with no setup charges, robust online portals for employers and members, comprehensive support.
    
  • Benefit Concepts—Administers HRAs and FSAs. Members with HRAs and/or FSAs through Benefit Concepts have access to an online suite that allows them to view and submit claims, manage PSA account balances, and access forms, documents, and other tools.
    
  • Wells Fargo Health Benefit Services—Administers HSAs. Wells Fargo offers a competitive rate, as well as employer and employee portals to manage account activity and a strong service support team.

  Want to get a quote?

  • Contact your broker or call our sales team at 1-800-422-3545.
  • Employer groups of fewer than 10 employees can request a quote online.

  PSA Resources

  • Personal Spending Account Comparison
  • Personal Spending Account Solution Planning Guide
  • Wells Fargo HSA Overview
  • Bank of America HRA/HAS/FSA Overview
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  Employee Tools and Support

• • Member Central—Gives members online access to their personal health care information, including deductible and claims status, links to personal spending account balances, and much more. At Member Central, it's all in one place.
  • Online Pharmacy—Search prescription medication copayment levels and lists of covered medications. Also provides generic alternatives to most brand-name prescriptions.
  • Medical Cost Comparison Guide for PPO Members
    Helps employees compare the cost of the care at various facilities in their area and make more effective decisions about where they receive care.
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  Employer Resources

• Use these Consumer Choice Blue resources to help you make your offering a success:

  • Employer Introduction to Consumer Choice Blue
  • Plan and Funding Options
  • Personal Spending Account Comparison
  • Wells Fargo HSA Overview
  • Benefit Concepts HRA/FSA Overview
  • Bank of America HRA/HAS/FSA Overview
  • Benefit Summaries
  • IRS Report on PSAs