Update: Consumer Directed Health has been removed. HSA and HRA have become their own benefit categories. With this change, HSA and HRA benefits will only be supported by the new UI. Company's still using the old UI will not be able to include HSA/HRA in the enrollment flow.
This article provides step-by-step instructions for configuring HSA plans in Employee Navigator.
Please refer to the following article: HSA FAQs
Prior to HSA Plan Setup
1. HSA plan year must align with medical, FSA & LPFSA. You cannot have the HSA on a 1/1 and medical on a 4/1. Refer to system limitations for more details.
2. The HSA is built as an independent plan and is not configured within the Medical Plan. It is required for the HSA plan to be tied to a medical plan. You first need to indicate on the medical plan if an HSA is offered before you can tie the HSA to the medical plan.
- On the medical plan, go to "Enrollment Options" under Eligibility & Enrollment and check the box for "HSA is offered".
3. An HSA plan requires a payroll group to be configured. For the system to calculate an employee or employers per pay contribution it needs to have pay dates. This also allows the system to calculate employee max per pay limits.
- For details and complete instructions on the setup and configuration of payroll groups, see the full support article here: Payroll
4. Employees can make adjustments to their per pay contribution throughout the year if you have set this up under life events.
- To allow employees to make mid-year changes to their HSA contributions go to the company's Benefits tab> Settings> Life Events> Adjust / End Coverage> 'edit' next to Change HSA. Check the box for Employee Visible and save. You can also check for approval required.
Input basic policy information. This tab is standard across all plan types. Refer to the following article for more information: Base Plan Setup: Policy Info Tab
Customize the employee experience by adding optional plan resources and documents. Employees can access this information during enrollment by clicking the plan details link, or throughout the year from their Benefits Overview page. This tab is standard across all plan types. Refer to the following article for more info: Base Plan Setup: Communications Tab
Eligibility & Enrollment
Set plan eligibility and waiting period/entry date rules for new hires, and coverage drop rules for employee terminations. This tab is standard across all plan types. Refer to the following article for more info: Base Plan Setup: Eligibility Rules Tab
Note! Eligibility has to match the eligibility on the medical plan or you could have enrollment issues. If not all employees are eligible for the HSA that are eligible for the medical plan, you may want to consider building two medical plans. This will allow you to have medical for those who do not get the HSA and medical for those who do get the HSA which will allow you to match eligibility on the HSA plan.
Define additional plan eligibility options that should be enforced during employee enrollment. This tab is standard across all plan types. Refer to the following article for more info: Base Plan Setup: Eligibility Options Tab
Setting that allows employees to decline the HSA. The system is defaulted to "No". If employees are allowed to decline, check the box.
Optional tool that displays during enrollment and provides recommendations on the best fitting plans based on employee responses to a series of questions. This tab is standard across all plan types. Refer to the following article for more info: Decision Support Tool
Questions & Disclosures
For more info on Questions and Disclosures: Eligibility Underwriting Questions and Disclosures
You have to add a contingent medical plan. You can add multiple contingent medical plans but consider if you are integrated on the Cafeteria EN-Exchange prior to doing this. Why?
- If for some reason the TPA has setup 2 or more HSAs in their system then you must build the same amount in EN using the same eligibility for each that the TPA has used. EN allows you to build one HSA and link multiple contingent medical plans but doing this would not allow the TPA to distinguish which HSA to put the EE into in their system.
Contingent Plan (required): Select a contingent medical plan. As indicated at the beginning of this article, you must set "HSA is Offered" on the medical plan.
Pro-rate Employer Contribution (optional): If the employer wants to pro-rate how much of the employer annual contribution the employee receives then check this box. AND YOU MUST complete 'Funding Calendar' if using this setting. Refer to System Limitations for more details
Employee Can Contribute (optional): If the employee can contribute, select this box.
Minimum Employee Contribution (optional): Use if you or the TPA want to require a minimum employee contribution. This is an annual minimum so if you are wanting a per pay then you will need to multiple the per pay by number of pay periods.
Employer Annual Contribution (optional): If employer contributes, enter the annual amount based on Tier. If there are just two levels of HSA ER contributions, such as EE and EE + Family, you can just use the 'Employee' and 'Employee Plus Family' tiers.
The funding calendar is only needed if the client wants to pro-rate the employer contribution for new hires. If you checked 'Pro-rate Employer Contributions' under contingencies then this is required.
Although it is called "funding calendar" it does not set when the employer actually funds employees accounts. It purely drives the system to pro-rate new hires ER contribution and not "when" funds are deposited just "how much" in total of the annual contribution a new hire will receive.
Best practice is just enter the 1st day of the month for each month of the plan year. The system works best when all 12 months are completed.
Note! If you change the plan year it is best practice to delete the funding calendar dates 1st, then change plan year, then re-enter funding calendar dates. The system will store funding calendar dates on the back end when you change the plan year and that can cause the system to calculate ER funding inaccurately.