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Blue Options FC
Home | About Blue Options FC | How it works | FC eligible plans | Funding | Enrollment | Account management

How it works

A simplified approach to health benefit budgets

  1. You set your annual health care budget with a fixed contribution to each employee's health benefits. These contributions go toward funding the employee's health care plan.
  2. Utilizing our most popular plan, Blue Options, you choose a benefit series designed to fit your budget objectives.
  3. Employees use the money you contributed to build a personalized health plan. They shop for benefits online using our unique eBenefitsNOWSM1 tool and create a plan that's right for them. They customize their plan by selecting from a range of levels for copayments, coinsurance, deductibles and prescription drugs.
  4. If employees design a plan that costs more than your contribution, they pay for the difference through payroll deductions, just as they do today.
  5. When employees design a plan that costs less than the funds you contributed, the funds are deposited in a health reimbursement account (HRA). These funds can be used to pay for out-of-pocket medical costs throughout the year, such as copayments and deductibles or other expenses that you specify.
  6. At the end of the year, if employees still have money remaining in their HRA, you can elect to allow it to roll over to pay for next year's for out-of-pocket expenses.

How does it work?


Example: Figures are for illustrative purposes only. Actual plan designs, costs and contributions may vary. You elect whether HRA funds are eligible for roll-over.

Year 1:

Jim's employer gives him $2,800 to purchase his health insurance. Fixed contribution
$2,800
Using the eBenefitsNOW online enrollment and shopping tool, Jim customizes a plan that costs $2,500 per year,
leaving him with a $300 balance that is put into an HRA.		 Less cost of health plan Jim customizes
($2,500)

Account balance
$300
During the year, Jim spends $150 on medical supplies. He submits these receipts and is reimbursed this amount from his HRA, leaving him with $150. Less Jim's medical expenses
$150
At the end of the year, Jim rolls over the unused HRA balance for use next year on out-of-pocket expenses. Ending account balance
$150

Year 2:

Jim's employer gives him $3,000 to purchase his health insurance. Account balance
$3,000
Using the eBenefitsNOW online enrollment and shopping tool, Jim selects a plan that costs $2,800 per year
leaving him with a $200 account balance that is put into his HRA.		 Less cost of health plan Jim customizes
($2,800)
The extra $200 from this year is added to Jim's $150 HRA account balance from the previous year giving him a total of $350
in his HRA for out-of-pocket expenses.		 Account balance
$200

Account roll-over from last year
$150

New account balance
$350


®, SM Mark of the Blue Cross and Blue Shield Association. SM1 Mark of Blue Cross and Blue Shield of North Carolina.