Benefit Stacking
In conjunction with the High Deductible Health Plan (HDHP), the underlying Flexible Spending Account (FSA), Health Reimbursement Arrangement (HRA), and Health Savings Account (HSA) are the three main components of today’s Consumer Driven Health Plans (CDHP), with each one offering its own benefits to the participant and governed by its own set of rules and regulations.
Click here for descriptions of each of these components.
Customizing Your CDHP
Each worksite situation is unique, so the key is to design the CDHP to achieve your client's specific goals. Therefore, maximum account flexibility is required to realize the full benefits of a CDHP.
You may want to offer an FSA, HRA, or HSA as a standalone plan. Or you and your client may see the benefit of stacking the plans to include a combination of the three. You may even choose to offer a "menu" of plans from which the employees can choose (see example below).
In 2005, "ABC Company", an Arkansas-based employer with 47 employees, implemented an Employee Health Plan Menu. From this menu, the employee could choose from three different High Deductible Health Plans (HDHP). Each plan option was designed to benefit the employees in different ways by providing diversity in out-of-pocket expenses and deductible amounts.
The table below shows how one HDHP policy from one carrier plus the services of a CDHP Administrator can create three or more different plan options.
Option A: 4-Tier |
Option B: 2-Tier |
Option C: HSA |
|
| Deductibles | $250 Individual $500 Aggregate Family |
$1,000 Individual $2,000 Aggregate Family |
$2,600 Individual $5,200 Aggregate Family |
| Co-Insurance |
20% Co-Insurance $3,000 Individual $6,000 Family |
20% Co-Insurance $3,000 Individual $6,000 Family |
20% Co-Insurance $3,000 Individual $6,000 Family |
| Pharmacy/Office visits applied to deductible and co-insurance. | |||
| Out-Of-Pocket | Individual $800 Family $1,600 |
Individual $1,400 Family $2,800 |
Individual $2,680 Family $5,360 |
| Premiums/ Contributions |
Employee Only $360 Annual Employee & Spouse $900 Annual Employee & Child $720 Annual Family $1,080 Annual |
$360 Individual HRA $720 Employee + Dependent HRA No Premiums |
$900 Individual HSA $1,800 Employee + Dependent HRA No Premiums |
To fully maximize your CDHP goals, you need an administrative solution that can embrace any combination of health care accounts in conjunction with any health plan design, all within an easy-to-understanyd program for employees. The DPI-Suite is that solution.