Aetna High Deductible Health Plan (HDHP) - New for 2020
Good news! For the 2020 plan year, there is a new plan option being offered to eligible NAF employees and retirees called the High Deductible Health Plan or HDHP. This type of medical plan combines quality medical coverage with a tax-favored savings account that helps you with health care expenses.
The HDHP works much like plans you are familiar with where you meet a deductible each year, then share in the cost of your care. However, with this plan your deductible is higher in exchange for a 15-20% lower employee cost (premium) than the Aetna Choice POS II plan.
Here's how the HDHP works:
- You pay 100% of your health care expenses, including covered prescription drugs, until you meet the in-network deductible.
- Once you meet the deductible, you pay a percentage of the covered expenses and Aetna pays their portion up to the plan’s out-of-pocket maximum.
- Once you meet the out-of-pocket maximum, in-network covered services are paid at 100% for the rest of the year.
- Drugs on the Preventive Medicine List are covered in full, no deductible applies.
- This plan uses the same provider network (doctors, hospitals, pharmacies) as the Choice POS II plan. Rest easy knowing that you do not need to change your doctors.
- This plan has the same services covered as the Choice POS II plan. This includes:
- Preventive care covered at 100% when you use in-network providers
- Prescription drugs (what's covered and what's not)
The plan covers the same program features as the Choice POS II plan including:
- Health Incentive Credits
- Healthy Lifestyle Coaching
- Disease Management support
- 24-Hour Nurse Line
- Aetna discounts
- and more!
This plan has the same $150 vision hardware reimbursement benefit as the Choice POS II plan.
Depending on your employee type, once you are enrolled in the HDHP you will have access to a tax-favored savings account that will help you save and plan for future health care expenses. Learn more below:
CONUS Employees — HSA or FSA
As a U.S. Active employee, when you're enrolled in the HDHP you are eligible for a Health Savings Account (HSA). The HSA helps you meet the deductible and pay your share of qualified medical expenses. You may use this account for eligible health care expenses, or let it grow for future expenses, even those into retirement. You’ll save on taxes, too. Contributions and earned interest are tax-free, and you are not taxed on withdrawals to pay qualified expenses.
Once you enroll in an HSA, the DoD NAF will contribute $500 (for employee only coverage) or $1,000 (for family coverage) to this account for 2020 at the beginning of the year. This contribution will be deposited into your account once you elect the HDHP and your HSA is open. You may contribute to the account as well. Employees can choose to have pre-tax funds deposited to their HSA from their paycheck.
How does the HSA work?
HSA contributions go into a bank account owned by you, the employee (or pre-65 retiree), so there is no “lose it or use it" rule.
The HSA allows higher pre-tax contributions for eligible expenses than a Flexible Spending Account (FSA).
HSA monies stay with you even if you switch plans or no longer work at your NAF employer — regardless of whether you leave or retire.
Once your account reaches $1,000, you can choose to invest the funds.
If you are 65 or older or disabled, you may use the HSA monies for non-eligible expenses without the 20% tax penalty. “Regular” taxes will apply to the withdrawal amount.
If you have an HSA already, you may transfer the balance to this HSA.
- Payflex, the HSA administrator, offers many online tools and resources that make it convenient to manage your account.
The best part? You are in charge of your HSA funds. This makes you the decision maker. When you spend your own money, you are inclined to ask more about the cost of health care. This saves you and the plan money. Saving the plan money saves you on payroll contributions.
If you choose to have a Flexible Spending Account (FSA) instead of the HSA, you can learn more here. Note: You can not have both an FSA and an HSA; it's one or the other.
Additional HSA resources
OCONUS Employees — HRA & FSA
As a DoD NAF OCONUS employee, when you're enrolled in the HDHP you are eligible for a Health Reimbursement Account (HRA) and/or a Flexible Spending Account (FSA).
The HRA helps you meet the deductible and pay your share of qualified medical expenses. You may use this account to pay for eligible health care expenses. You’ll save on taxes, too, since the account earns tax-free interest, and you are not taxed on withdrawals to pay qualified expenses.
Once you enroll in the HRA, in early 2020 the DoD NAF will contribute $500 (for employee only coverage) or $1,000 (for family coverage) to this account once it is open.
If you do not use the entire fund in one calendar year, the remaining amount will rollover into next year’s fund balance as long as you remain in the HDHP. This allows you to build your account to pay for future costs. However, if you stop participating or should the plan be terminated by the DoD NAF, any unused funds in the account will be forfeited.
How does the HRA work?
Once funds from your employer are deposited into your account, here’s how you can use them:
- Get reimbursed Pay for an eligible expense with cash, a check or your credit card. Then, submit a claim to pay yourself back.
- Pay directly Use the online feature on your PayFlex.com to pay your provider from your HRA.
Additional HRA resources
If you choose to have an FSA, you can learn more here. Note: As an OCONUS employee enrolled in the HDHP, you may have both the HRA and the FSA or choose to just have one.