Consumer-Directed Health Plan (CDHP) with Health Savings Account (HSA)

The Consumer-Directed Health Plan (CDHP), managed by Blue Cross Blue Shield of Michigan (BCBSM), offers the lowest monthly premiums of all U-M health plans, in exchange for higher out-of-pocket costs at the time of care. The CDHP combines the flexibility of the PPO plan with a higher deductible and out-of-pocket maximums than the Comprehensive Major Medical (CMM) plan.

When combined with a tax-free Health Savings Account (HSA), the CDHP allows you to decide how to pay, or save, for future medical expenses. The CDHP is the only U-M health plan that meets the Internal Revenue Service (IRS) requirements to pair with an HSA. As with all U-M health plans, prescription drug coverage is included with enrollment.

Additional Information

Summary of Benefits

Deductible:
- In-network: $1,700 individual/$3,400 family (combined medical and prescription drug plan)
- Out-of-network: $1,700 individual/$3,400 family (combined medical and prescription drug plan)
- 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%.
- In-network and out-of-network services accumulate separately toward the associated deductible and out-of-pocket maximum.
Out-of-pocket Maximum:
- In-network: $5,500 individual/$10,600 family (combined medical and prescription drug plan)
- Out-of-network: $11,000 individual/$21,000 family (combined medical and prescription drug plan)
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 care: 10% coinsurance after deductible

Important Plan Details

Covers the same medical services as other plans, including no out-of-pocket costs for preventive care and screenings.
When you need non-preventive health care, you pay the full cost of that care with funds from your HSA or out-of-pocket, up to your plan's high deductible.
Once you reach the deductible, you pay 10% for most medical services, and copays for prescription drugs.
The CDHP is the only U-M health plan that meets the Internal Revenue Service (IRS) requirements to pair with an HSA.
The annual deductible is set at the minimum threshold to qualify for an HSA, and is updated based on IRS requirements.
While it has the lowest monthly premium cost, you may incur higher out-of-pocket costs, depending on the amount of care you need.
For savings using pre-tax dollars, consider enrolling in a Limited Purpose Flexible Savings Account (FSA) that can be used for vision and dental services.
If you are generally healthy and don't need to visit your health-care provider often, choosing the CDHP may save you money.
Financial hardship created from the costs for the deductible and out-of-pocket maximum is not a qualifying event to change plans.
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Eligibility Requirements

Due to the tax advantages of Health Savings Accounts (HSAs), which are governed by the Internal Revenue Service (IRS), you must meet the following eligibility requirements:

Are enrolled in the Consumer-Directed Health Plan (CDHP)
Must have a Social Security number and have it on file with the university
Must have a residential 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-high deductible health plan coverage, including (but not limited to):
- 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 or CHAMPVA coverage
Have not received any medical benefits (excluding dental, vision or preventive) during the previous three months from:
- The Indian Health Service (IHS)
- The U.S. Department of Veterans Affairs (VA), except for treatment for a service-connected disability
J-1 and J-2 visa holders are not eligible to enroll in the CDHP.

If You Live in a Country with Government-funded Health Care

Members living in Canada and other countries where government-funded health care is provided are advised to consult with a qualified tax adviser for information about tax implications associated with the HSA before selecting the CDHP with HSA.

Plan Documents

Plan Contact Information

bcbsm.com

855-669-8040

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

Group Number: 007005187

Benefits Office

Consumer-Directed Health Plan (CDHP) with Health Savings Account (HSA)

Additional Information

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