UC Health Savings Plan

The UC Health Savings Plan (HSP) is a high-deductible PPO (preferred provider organization) paired with a health savings account (HSA), a federal tax-free account maintained by HealthEquity, to help pay your out-of-pocket costs.

Please note: When HealthEquity establishes the HSA, it is required by law to verify the identity of participants. To comply with this requirement, UC will provide information including your full legal name, residential address in the U.S., date of birth and social security number or other government-issued identification number.

New for 2024

• FDA-approved over-the-counter contraceptive drugs and devices will have $0 cost-share and no prescription requirement (deductible applies).
• Coinsurance will be eliminated for in-network vasectomy services (deductible applies).

How it works

You and UC both contribute to the HSA. UC contributes up to $500 per year for individual coverage and up to $1,000 for family coverage. You can contribute up to the limits set each year by the IRS — for 2024, this limit is $4,150 for individual coverage and $8,300 for family coverage. People age 55 and over can make an additional “catch-up” contribution of $1,000, using the HSA, Life Insurance Voluntary Disability and AD&D Change Form.

Remember to reduce your total contribution by the amount UC contributes to your HSA to comply with the IRS limits above. Please note that UC’s contributions are currently subject to California income tax.

The HSA has a “use-it-or-keep-it” feature, so your account balance rolls over annually and continues to grow tax-free. You own your account, so money you don’t use toward eligible health care expenses goes with you when you leave the HSP, when you end your employment with UC or when you retire.

If your coverage through UC Health Savings Plan begins any time after January, please refer to the Health Savings Account proration schedule to learn more about the rules for prorating UC's contribution and the contribution you are allowed to make for the year.

Best fit for you if:

• You want direct access to all providers without need for referrals
• You want federal tax-free savings for current and future health care costs
• You are able to risk incurring greater out-of-pocket costs
• You want to build retirement savings for future health care costs for you and your eligible family members
• You and/or your family members live outside California

Monthly plan costs — 2024

Faculty and staff

Typical out-of-pocket costs

Once you've met the deductible, you pay:

• Office visit/urgent care visit: preferred provider: 20%; non-preferred provider: 40%; (in-network preventive care has no charge)
• Emergency room: 20%
• Hospital stay: 20% in-network; 40% out-of-network
• Prescription drugs: 20% if purchased from in-network pharmacy; 40% from out-of-network pharmacy

Understanding UC Health Savings Plan and the Health Savings Account

Eligibility

The IRS and UC have rules in place that limit who can enroll in this plan. You are not eligible to enroll in UC HSP if you:

• Are already enrolled in Medicare. Medicare eligibility usually begins at age 65 and you can be retroactively enrolled in Medicare Part A, unless you can postpone your Medicare enrollment. Medicare Part A is mandatory for those who receive Social Security income. Check with Social Security to determine your eligibility to postpone Medicare enrollment.
• Are a retiree who was not enrolled in UC HSP while you were employed by UC. If you are enrolled in UC HSP when you retire, you may continue your enrollment in the plan as long as you are not enrolled in Medicare. Please note: If you or a covered family member ages into Medicare while enrolled in UC HSP, you'll have a Period of Initial Eligibility to enroll in another medical plan.
• Are covering a family member who is enrolled in Medicare, unless you disenroll your Medicare-enrolled family member from your coverage.
• Plan to enroll in UC’s Health Flexible Spending Account (FSA). IRS rules limit the use of both accounts simultaneously. However, UC is introducing a new option for people with a 2022 Health FSA account balance who want to switch to UC Health Savings Plan. Instead of forfeiting your balance, up to $570 from your 2022 Health FSA will be automatically transferred to a Limited Purpose Health FSA for your use toward eligible expenses during 2023. See the Health Flexible Spending Account page on UCnet for terms and conditions related to the Limited Purpose Health FSA.

About UC HSP

• You can choose any doctor, hospital or behavioral health provider you wish, but services obtained from providers in the Anthem Blue Cross PPO network cost less.
• Preventive care from in-network providers is covered at 100% without the need to meet your deductible.
• For all other services and prescriptions, you pay 100% of the cost, until you meet the deductible. For 2024, the in-network deductible is $1,600 for individual coverage and $3,200 for family coverage; the out-of-network deductible is $2,600 for individual coverage and $5,200 for family coverage. For family coverage, the family deductible must be met before the plan pays benefits for any family member.
• Once you meet the deductible, you pay 20% for Anthem Blue Cross PPO network providers and 40% for out-of-network providers.
• Annual out-of-pocket maximums limit what you pay for covered services. If you reach the annual maximum, the plan pays 100% of your covered medical and prescription drug costs for the rest of the year. The maximums for in-network services are $4,000 for individual coverage and $6,400 for family coverage. Out-of-network maximums are $8,000 for individual coverage and $16,000 for family coverage. For family coverage, the family out-of-pocket maximum must be met before the plan pays 100% of covered expenses for any family member.

Using your HSA for medical expenses

• As an HSP member, you can use your HSA funds to pay for your plan’s deductible and/or out-of-pocket maximum for all eligible health care expenses, or you can save your HSA funds until you turn 65. For a complete list of eligible expenses, read IRS Publication 502 on the IRS website.
• For your convenience, all your claims from UC plans under Anthem, VSP and Delta Dental will be sent to HealthEquity. Make sure you only request reimbursement for those claims that are incurred after you have established your HSA.
• After you receive services, your provider will bill your plan (Anthem Blue Cross, VSP or Delta Dental). Your plan will send you an Explanation of Benefits explaining what’s covered, and your provider will send you an invoice for what you owe. If you choose to pay your invoice using HSA funds, you can:
  • Pay your bill with your HSA debit card
  • Pay your provider directly through the HealthEquity portal
  • Use another method of payment and request reimbursement through the HealthEquity portal

  About the HSA

  • You and UC contribute to the HSA, up to the limits set each year by the IRS — for 2024, this is $4,150 for individual coverage and $8,300 for family coverage. People age 55 and over can make an additional “catch-up” contribution of $1,000, using the HSA, Life Insurance Voluntary Disability and AD&D Change Form .
  • If you are covering your domestic partner under this plan, both you and your partner can establish an HSA and in 2024 you may both contribute up to $4,150 (for an individual HSA) or $8,300 (if you also enroll an additional family member) for the year.
  • If you are an employee, your pretax contributions are taken from your paycheck, lowering your tax bill. HSA contributions taken from your paycheck are attributed to the year in which they are actually made. You may change your contribution level for the current year through payroll any time during the year subject to payroll deadlines. To confirm your payroll deadlines, contact the UCPath Center by signing into your UCPath account, selecting “Ask UCPath Center” and then “Submit An Inquiry.”
  • Employees may also make after-tax contributions to your HSA by working directly with HealthEquity. Contributions for the current plan year may be made until your tax-filing deadline, usually April 15 of the following year. Retirees make after-tax contributions directly to HealthEquity and take the tax benefit when filing federal income taxes.
  • UC contributes up to $500 per year for individual coverage and up to $1,000 for family coverage. This one-time UC contribution to your HSA is based on your coverage level as of January 1, and will not be adjusted mid-year if your coverage level, employment status or medical plan changes. Remember to reduce your total contribution by the amount UC contributes to your HSA to comply with the IRS limits above. Please note that UC’s contributions are currently subject to California income tax.
  • If your coverage through UC Health Savings Plan begins any time after January, please refer to the Health Savings Account proration schedule. In brief:
    • UC's contribution to your HSA will be prorated for the calendar year based on this schedule. If you continue the plan the following year, you will receive the full HSA beginning January 1.
    • Unless you qualify for the IRS last month rule, your maximum annual contribution will also be prorated.
    • Your plan deductible will not be prorated.
    • Whether you are eligible to make contributions to an HSA
    • The amount of the eligible contribution to the HSA for any calendar year
    • The withdrawal of any excess contributions
    • How funds in your HSA will be spent, and
    • Whether the distributions from your HSA are taxable or non-taxable.

    Plan documents

    • UC Health Savings Plan Booklet
    • UC Health Savings Plan Summary of Benefits and Coverage
    • UC Health Savings Plan Prescription Drug Plan Summary Plan Description