BCBSM Consumer-Directed Health Plan with Health Savings Account

The university is offering a new, Consumer-Directed Health Plan (CDHP) with a Health Savings Account (HSA). The CDHP is managed by Blue Cross Blue Shield of Michigan (BCBSM). The HSA is managed by HealthEquity, a health savings company. Learn more about how HSAs work, including what qualifies as a medical expense, by visiting the HealthEquity website.

The CDHP covers the same medical services as other plans, including no out of pocket costs for preventive care and screenings. Like the Comprehensive Major Medical plan, you pay co-insurance after the deductible is met and have access to a national network of PPO providers.

If you are generally healthy and don't need to visit your health care provider often, choosing the CDHP can save you money. 

While it has the lowest monthly premium cost, you may incur higher out-of-pocket costs depending on the amount of care you need. 

When paired with a Health Savings Account (HSA), the CDHP provides flexibility in how you spend and save for your health care. With an HSA, you can put away money for future healthcare costs while saving on taxes. And when you enroll in the CDHP, you’re also automatically enrolled into an HSA.

Search here to locate a participating CDHP provider or find out if your doctor accepts this plan.

IMPORTANT: Financial hardship created from the costs for the deductible and out-of-pocket maximum is not a qualifying event to change plans.

Consider the Consumer-Directed Health Plan if you:

• Want lower monthly deductions from your paycheck in exchange for higher out-of-pocket costs at the time of care
• Can afford to cover the deductible and out of pocket maximum if an unexpected medical expense arises
• Want flexibility in how you spend and save for your health care
• Are generally healthy and do not have significant ongoing medical needs or costs
• Want pre-tax savings to pay for eligible medical expenses with an HSA
• Want a healthcare emergency safety net

Please note: J-1 and J-2 visa holders are not eligible to enroll in the CDHP. 

Health Savings Account 

A Health Savings Account (HSA) lets you put money away for future healthcare costs while saving on taxes. When you enroll in the CDHP, you’re also enrolled automatically into an HSA. HSAs are never taxed at a federal income tax level when used for qualified medical expenses. Contributions can come straight out of your paycheck, and your HSA can grow tax-free too. If you would like, once you have more than $1,000 in your HSA you can begin investing. 

To learn more about Health Savings Accounts, visit learn.healthequity.com/umich.

What are the benefits of enrolling in an HSA?

• Pre-tax savings to pay for eligible medical expenses
• Create a healthcare emergency safety net
• No ‘use-it-or-lose-it rule; HSA funds never expire—even if you change health plans, employers or retire
• Member owns HSA funds and controls how balances are used

IRS rules do not allow you to enroll in an HSA and a Health Care Flexible Spending Account (FSA) at the same time, but you can enroll in a Limited Purpose FSA which allows you to use pretax dollars toward vision, dental and orthodontic expenses.

Eligibility Requirements

Due to the unique tax advantages of health savings accounts (HSAs), which are governed by the Internal Revenue Service (IRS), certain circumstances prevent you from enrolling. You must meet the following eligibility requirements:

• Are enrolled in the Consumer-Directed Health Plan (CDHP)
• Must have a Social Security number 
• Must have a home address on file, not a P.O. Box
• Cannot be claimed as a dependent on someone else’s tax return
• Are NOT covered under any other non-HDHP health coverage, including:
  • Medicare A and/or B
  • Coverage under a spouse’s or parent’s health insurance coverage
  • Access to a Health Care Flexible Spending Account (FSA), which covers pre-deductible medical expenses
  • Access to a Health Reimbursement Arrangement (HRA) which covers pre-deductible medical expenses
  • TRICARE coverage
• Have not received any medical benefits (excluding dental, vision or preventative) during the previous three months from:
  • The Indian Health Service (IHS)
  • The US Department of Veterans Affairs (VA) except for treatment for a service-connected disability
  • Cannot be claimed as a dependent on someone else’s tax return

Maximum employee contribution is the Annual HSA Contribution ($4,150/$8,300) minus university contribution ($800/$1,600). Employees 55 and older get an additional $1,000.

The HSA is managed by HealthEquity, a health savings company. Learn more about how HSAs work, including what qualifies as a medical expense, by visiting the HealthEquity website.

Please note:

• U-M will only contribute to the HSA established under the University of Michigan.
• A Health Savings Account is a bank account. In compliance with the USA PATRIOT Act, HealthEquity HSA is required to verify the legal identity of the account holder. HealthEquity follows the Customer Identification Program (CIP) process to verify your identity. As part of this identity verification process, employees may be asked to provide additional information and/or documentation before the HSA can be established. Additional information can be found on the HealthEquity website. 

Summary of Benefits 

• Deductible: $1,600 individual / $3,200 family (combined medical and Rx) 
  A family deductible applies when more than one person is covered on the plan. The ENTIRE family deductible must be satisfied, by one or any combination of the family members, BEFORE the plan begins to pay the claims at 90%.
• Out of pocket max - in network: $5,500 individual / $9,450 family (combined medical and Rx)
• Out of pocket max - out of network: $11,000 individual / $18,900 family
• Prescription coverage: standard copays apply after deductible 
• Preventive care: covered at 100% pre and post deductible 
• Office visit: 10% coinsurance after deductible 
• Urgent care: 10% coinsurance after deductible 
• Hospital: 10% coinsurance after deductible 

Plan Documents & Forms

• CDHP 2024 Benefits-at-a-Glance
• CDHP 2024 Summary of Benefits and Coverage

Plan Contact Information

bcbsm.com

855-669-8040

Blue Cross Blue Shield of Michigan
600 Lafayette E.
Detroit, MI 48226

Group Number: 007005187