Common use of HSA Clause in Contracts

HSA. Employees will have the option to choose between the original PPO coverage and a HSA (Health Savings Account) plan. Effective April 1, 2012 all newly hired employees will have health care coverage under the HSA. If any current or newly hired employee can show verification that they are not eligible for the HSA, then the employee can be covered by the PPO but will pay the cost of the premium for the HSA coverage. Employees enrolled in the HSA plan as of January 1, 2018, will not voluntarily return to the PPO plan. This HSA plan will consist of a $1500 single / $3000 family in network deductible and a $3500 single / $7000 family non-network deductible. Healthcare coverage will be made at 100% in network and 80% non-network after the deductible has been met. There will be a maximum out of pocket expense of $2500 single / $5000 family in network and $4500 single / $9000 family non-network. Prescription drug coverage will be available at $10 for generic, $30 for brand formulary and $50 for brand non-formulary. A mail in drug plan will be available at the same rate as a 30 day prescription. Office visits, urgent care and emergency room charges will be covered at 100% after the deductible is met. The City agrees to contribute $1250 single / $2500 family in to each employee’s account, for accounts that have been established, by January 15th of each year that the employee is enrolled in the HSA. There will be no lifetime maximum “cap” on the amount of insurance coverage or on the contribution amount accrued from the city. The employee is required to comply with all Federal guidelines concerning their HSA plan. New hires HSA deposit will be pro-rated quarterly, unless the full amount is necessary. To obtain additional HSA funds the employer shall submit documentation and the employer shall provide such money within seven (7) days.