BN - New Hire HSA/HDHP Enrollment Process Map

Follow this procedure for new UW employee enrollment in High Deductible Health Plans (HDHP) and accompanying Health Savings Account (HSA).

Procedure At-A-Glance
Category: Hiring an Employee - HDHP/HSA
Audience: Campus Benefits Administrators
Overarching Process: Hire/Rehire
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General Description

This business process will result in the enrollment of a new employee in the High Deductible Health Plan (HDHP) and accompanying Health Savings Account (HSA).

 Do not follow this procedure for existing employees changing their health elections! 

Process Inputs

  • The employee needs to supply both a HDHP and HSA application. 
Process Outputs
  • The Service Center sends an Enrollment File to TASC on Wednesdays.
Process Considerations
  • Applications must be submitted within 30 days of an employee's hire date.
  • HDHP and HSA are effective the first of the month following hire date.  

Procedure Steps

New Hire HSA/HDHP Enrollment

HSA Employer Instructions

1.  Determine if the employee has turned in an HDHP application and an HSA Application.

  • A WED report will capture HDHP/HSA discrepancies and affected institutions will be notified. The institution will need to follow up with the employee to make sure an HSA application is received timely.
  • HSA Application: Make sure the employee signs page 5 of the HSA application. **At this time, employees should not enroll in an HSA online.**
  • Note: Both applications must be received within the employee’s enrollment period (see Enrollment Deadline Worksheet) in order to be considered timely. Coverage is effective the 1st of the month following the hire date. Both plans will have the same effective date.
2.  Determine if the employee is eligible for the HDHP option of the State Group Health insurance plan.  All of the following must be true: 
  • Employee is eligible for the State Group Health insurance plan AND
  • Employee is not eligible for the Graduate Assistant/Short-Term Academic Staff benefits program AND
  • Employee is not enrolled in Medicare, TRICARE, or other health insurance AND
  • Employee is not a dependent of another person for tax purposes AND
  • Employee or any covered dependents are not enrolled in the Flexible Spending Account (FSA) Medical plan, or is not covered under someone else's FSA Medical plan.
3.  Enter HDHP enrollment into HRS. File original HDHP application in employee’s file and send a copy to the Service Center (does not apply if campus is eBenefits). If campus is eBenefits, make sure employee has elected HDHP enrollment. BN - Processing Events Using On Demand Event Maintenance

4.  Enter HSA enrollment into HRS.

Process Considerations
  • Enrollment form allows employee to indicate Annual or Per Pay Period amount. Best practice is to have employee indicate an ANNUAL amount. The annual amount will be divided equally by the number of pay periods remaining in the calendar year.
  • If the employee is electing a $0 Employee contribution, the annual election must be entered in HRS as $0.00 (unless the employee is a craftworker then enter $0.01).
  • 9-mo employees: Make sure to put on an override and divide the annual election over the remaining pay periods in the calendar year. HSA deductions are not taken on summer session or summer service appointments.
  • Example: Employee’s HDHP/HSA coverage begins 4/1/16 and elects $500 annual contribution. You will need to override and divide the $500 over 5 months (April, May, September, October, November deductions).

HSA Entry Steps into HRS BN - Processing Events Using On Demand Event Maintenance

a. Create an FSA Event on BAS Activity Table (Benefits > Manage Automated Enrollment > Review BAS Activity)

BAS

b. Go to On-Demand and Schedule/Prepare the Event

Election Entry

c. Click Election Entry and enter in HDHP/HSA enrollment

HSA Enrollment

d. Press Ok, and Validate/Finalize Event

Validate

e. Check Enrollments in Spending Accounts BN - Review Health Benefits Enrollments
5.  Write the coverage effective date of the HDHP/HSA at the top of the HSA application. File original HSA application in employee’s file.

 Send HDHP application to the Service Center (attn: Benefits team). This does not apply if the employee is enrolled in the HDHP via eBenefits.

  • **Madison Only: Do not enter the HDHP enrollment into HRS until you have received an HSA application from the employee. Make sure both the HDHP and HSA enrollments are entered on the same FSA or ADM event. BN - Adding Events to the BAS Activity Table
6.  The Service Center will calculate and enter the Employer contribution for the HSA. The employee will receive the Employer contribution prorated throughout the remainder of the year.

  • Single HDHP: $750/year, prorated at $62.50/month 
    • Example: Coverage starts 3/1 (March through December coverage= 10 months * $62.50/mo)
  • Family HDHP: $1500/year, prorated at $125/month
    • Example: Coverage starts 3/1 (March through December coverage= 10 months * $125/mo)
  • Note: When the employee’s FTE is less than 1044 hours (50%), they will only receive ½ of the ER Contribution, prorated.
    • Example: Employee is 40%, so is only eligible for ½ of the employer contribution. Employee will receive $375/year for Single HDHP plan, or $750/year for Family HDHP plan, pro-rated ($31.25/month for Single HDHP plan, or $62.50/month for Family HDHP plan).
**Employees enrolled in an HSA can change their contribution elections at any time. They may do this via Change of Election Form. A qualifying event is not necessary. 

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    Keywords:HDHP HSA Enrollment New Employees On-boarding On-board Benefit Health High Deductible Health Plan Health Savings Account Saving TASC hire rehire   Doc ID:48803
    Owner:Samantha Q.Group:Human Resource System (HRS)
    Created:2015-03-16 09:30 CSTUpdated:2016-11-29 16:18 CST
    Sites:Human Resource System (HRS)
    Feedback:  1   0