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).
- FA/AS/LI: HDHP and HSA are effective the first of the month following hire date. University Staff with no prior WRS Service: HDHP and HSA are effective the first of the month following two months of 'waiting' period.
- Employees must supply both a HDHP and an HSA Application (or enroll for both using self-service) and applications must be submitted within 30 days of the date of hire. Note: Both applications must be received within the employee’s enrollment period (see Enrollment Deadline Worksheet) in order to be considered timely. Both plans will have the same effective date.
- The enrollment form allows the employee to indicate an 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 (If the employee is a Craftworker, 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 during summer session or summer service appointments.
- Example: Employee’s HDHP/HSA coverage begins 4/1/16 and he/she elects $500 as their annual contribution. You will need to override and divide the $500 over 5 months (April, May, September, October, November deductions).
- Employees enrolled in an HSA can change their contribution elections at any time. They may do this by completing a Change of Election Form. A qualifying event is not necessary.
Warning! If an employee is changing their HSA election, follow the steps outlined under Procedure Steps: Entering an HSA Election Change.
PAPER APPLICATION PROCESSING STEPS:
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 by the UW Service Center. Institutions will need to follow up with the employee to make sure an HSA application is completed and received timely. Verify that the employee signs page 5 of the HSA application as this can be missed.
- 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 currently enrolled in the Flexible Spending Account (FSA) Medical plan, or another family member's FSA Medical plan.
4. File the original HDHP application in employee’s file and send a copy of the application to the UW Service Center.
5. Verify the enrollments after you have completed HRS entry by following: BN - Review Benefit Enrollments .
PROCEDURE STEPS: ENTERING AN HSA ELECTION CHANGE
1. Add an FSA Event to the BAS Activity Table following: BN - Adding Events to the BAS Activity Table .
2. Navigate to: Benefits > Manage Automated Enrollment > Events > On Demand Event Maintenance.
3. Schedule and Prepare the Event
4. Click the Election Entry button
5. The Enrollment Code, Enrollment Reason Received By date should be left blank.
6. Scroll down to Plan Type 67 and use the magnifying glass to locate the HSA plan that corresponds to the employee's HDHP election.
7. Enter the new annual HSA election from their enrollment form.
- If this is a 9 month employee with an override, you will need to calculate the new override by taking the new annual pledge and dividing that by the number of payrolls remaining in the year minus the summer months of June, July, and August.
9. Click the calculate button to calculate the Per Pay Period amount.
10. Scroll to the bottom of the page and click the OK button to return to the On Demand screen.
11. Click the Validate/Finalize button.
Note: The UW 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)
- FTE < 1044 Hours: 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).
- BN - Adding Events to the BAS Activity Table
- BN - Enrolling, Changing, or Canceling Coverage Using On Demand Event Maintenance
- BN - Review Benefit Enrollments
- UW System Administration Health Savings Account (HSA) Policy
- Employee Trust Fund (ETF) High Deductible Health Plan (HDHP) Policy
- HDHP Health Application (ET-2301) and HSA Enrollment Form
- Change of Election Form
- Enrollment Deadline Worksheet
- Payroll Calendar