Blue Options HSASM is a high-deductible PPO plan packaged with a health savings account (HSA) that offers tax-advantages.1 Employees use funds that they, their employers, or anyone, contribute to the HSA to pay for qualified medical expenses, both before and after the deductible is met.2
Low premiums. Employers can expect premium savings of up to 30% when compared to a traditional PPO plan.3 These are savings you can invest right back into your business. The coinsurance options can also help lower plan premiums.
Take advantage of additional tax deductions. As always, the premiums you pay for your employees' health care are tax-deductible, but in addition, the contributions you make to their HSAs are also tax-deductible.
Nearly 56% of small businesses make contributions to their employee's HSA accounts.4 By contributing, businesses jump-start the accounts, which helps employees transition into the plan more easily.
For your employees
Employees use a free HSA debit card or checkbook to access the funds that you or they have contributed. Using these funds, they pay 100% of all medical expenses until their deductible is met. Even before the deductible is met, however, the member enjoys BCBSNC-negotiated rates, which offer significant savings. After the deductible is met, the employee pays coinsurance on covered services.6 Some plan options include full coverage for certain preventive care services, like routine physical exams, to encourage this important aspect of health care.7
If employees have funds in their HSA account, the account can be used to pay for medical expenses before any deductible and coinsurance (if applicable) amounts are met.2 So while employees pay a greater portion of the total cost of their health care, this cost-sharing can be offset by the lower premiums and tax-savings offered by the HSA. Employees save tax-free, earn interest tax-free and spend tax-free, which can amount to significant savings, depending on their tax bracket8.
HSA funds accumulate and roll over if not used each year. Since the account is the employee's, it stays with the employee and can also be used after the employee retires.
Blue Options HSA benefits summary
This summary shows the range of coverage available. Your plan benefits can be customized to the needs of your business and employees.
Out-of-pocket maximum (maximum amount a member pays including deductible and coinsurance)
Individual: $1,200-$5,000, depending on selected combination of deductible and coinsurance
Family: $2,400-$10,000, depending on selected combination of deductible and coinsurance
Enhanced preventive care7
Cover at 100% (waive deductible)
Cover at a chosen coinsurance percentage (waive deductible)
Prescription drugs
Included within medical deductible, coinsurance and out-of-pocket maximum
Contribution limits for the HSA
$3,050 for an individual; $6,150 for a family. Each member on a plan who is over 55 can make an annual catch up contribution of $1,000 per member. These limits are established by the IRS, not BCBSNC.
Is it right for your business?
Blue Options HSA works for businesses looking for a plan that's easier on the bottom line. Employees should be able to manage higher deductibles and more hands-on requirements of an HSA plan.
Is it right for your employees?
HSAs are new to many people and can seem complex. We've created a special Web site called ExperienceHSA.com to help explain HSAs to employees.
Why BCBSNC?
The largest network in North Carolina - 95% of doctors in North Carolina and 96% of hospitals in North Carolina are part of our network9
Over 68% of small businesses in North Carolina who offer their employees health insurance, chose Blue Cross and Blue Shield of North Carolina10
Rated #1 in customer satisfaction in North Carolina11
BCBSNC offers support and programs for members, including:
Online access to benefits and claims information at bcbsnc.com
Blue PointsSM - Earn rewards, including brand-name merchandise and gift cards, just for being active and living healthy12
Blue ExtrasSM - Discounts on chiropractic services, laser eye surgery, vitamins and more12
After the deductible is met, BCBSNC pays this percentage of the cost
Blue Options HSA combines a high-deductible health plan and a health savings account (HSA). BCBSNC does not administer your HSA and is not affiliated with your HSA custodian or administrator.
A full list of qualified medical expenses can be found in IRS publication 502, available at irs.gov.
Percent savings based on data for underwritten groups as of 10/1/2008 with a25 to 50 subscribers in a medium risk industry, with a medium medical risk. Pricing is for a single male, age 40-44, residing in Durham. Base component values for Blue Options HSA are for employee coverage. Base component values based on Blue Cross and Blue Shield of North Carolina internal data, 2007.
Small Business Administration 2009 Health Care Survey
These amounts may be updated each year to align with IRA guidelines. For the most up-to-date information, visit bcbsnc.com
When using out-of-network providers, in addition to deductible and coinsurance amounts, you may be responsible for the difference between the BCBSNC allowed amount and the provider's actual charge.
Includes in-network annual routine physical exam, well-baby and well-child care and certain immunizations and screenings. Other covered services may be subject to deductible and coinsurance.
Withdrawals are tax-free only if used for qualified medical expenses. See irs.gov for specific regulations.
2008 Government Accountability Report: State Small Group Health Insurance Markets (GAO-09-363R). Number is representative of small businesses that purchase health insurance in North Carolina.
Frederick Polls, September 2008.
BCBSNC provides Blue Points and Blue Extras for your employees' convenience and is not liable in any way for the goods or services received. Decisions regarding their care should be made with the advice of their doctor. BCBSNC reserves the right to discontinue or change these programs at any time.
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