2024 Open Enrollment Information
Open Enrollment for 2024 is coming!
November 8–22, 2023
Acronyms and Terms
• DCA – Dependent Care Account
• FSA – Flexible Spending Account
• HDHP – High Deductible Health Plan
• HSA – Health Savings Account
• OOP – Out of Pocket
• PPO – Preferred Provider Organization
• QLE – Qualifying Life Event
Open Enrollment Action Items Include
• Opt-out Medical Payments
• Flexible Spending Account (FSA)
• Dependent Childcare Account (DCA)
• Switching from PPO (Preferred Provider Organizations) to HDHPs (High Deductible Health Plans) or switching from HDHP to PPO
• Adding or removing a dependent
Special Note – HDHP
If you are enrolled in the HDHP and Health Savings Account (HSA) or had a Qualifying Life Event (QLE) in 2023 that changed your coverage (birth of child, loss of coverage, marriage, divorce, etc.) it is highly recommended that you double check to make sure your Medical Plan coverage and your HSA contribution (if you make your own) is correct, according to your family status.
PPO or HDHP with an HSA — What’s the difference?
PPO
• Annual deductible: $150 for self only; $300 for family
• May elect for an FSA
• Employee pays first OOP
• Employee payroll medical contributions are more expensive
HDHP with FSA
• Annual deductible: $1600 for self only; or $3200 for family
• City contributes to the HSA $1450/self; $2900/family
• Employee is left with a deductible gap of $150/self; $300/family
• Employee may contribute to the HSA via payroll deductions
• Employee uses HSA to pay first dollar
• Employee payroll medical contributions are less expensive
DID YOU KNOW?
The City of Lancaster contributes to employees HSA accounts. Those 55 and older can contribute an additional $1,000 as a catch-up contribution.
How does a PPO, HSA, or FSA work?
PPO
• Pay out of pocket until deductible is met. Insurance picks up cost of services after the deductible is met.
• Management of bills: Lower deductible = fewer bills to review and pay.
• Use FSA funds to pay for medical care and other items deemed eligible by the IRS.
FSA (Flexible Spending Account)
• Employee contributes to the FSA
• Funds are available on the first business day in January
• Employee pays the funds back through payroll deductions (Funds expire by March 30 of the following year)
HDHP with HSA (Health Savings Account)
• Pay out of pocket until deductible is met. Insurance picks up cost of services after the deductible is met.
• Management of bills: higher deductible = more bills to review and pay.
• Use HSA funds to pay for medical care – visit Health Equity to learn more.
• City contributes funds to the employee’s HSA account
• Employee may (optionally) contribute to the HSA
• Funds from the City of Lancaster are available on the first business day in January (Funds are owned by the employee and the funds do not expire.)
Health Savings Accounts
• Qualifying health plans (HDHP) typically have lower premiums
• HSA contributions are tax-free (federal and state)
• Your contributions lower your tax liability
• Your HSA balance rolls over every year
• The account is yours even if you change jobs, insurance plans, or retire
• You can invest your HSA funds and the interest you earn is tax-free
• Learn more at HealthEquity
What If I Don’t Want to Make Changes Right Now?
• You still need to confirm/consent to stay in the PPO or HDHP Medical Plan you were previously enrolled in.
• You still need to confirm that you are not adding or removing a dependent.
• If you are satisfied with your current elections, you will select the same elections for 2024.
• Speak with an HR or Benefits Counselor on-site to talk through your decision.
• You cannot make any changes after November 22, 2023, except for a QLE.
What If I Don’t Actively Participate?
• Opt-out Medical Payments – You will not receive any payments in 2024.
• Flexible Spending Account (FSA) – You will not have a debit card issued to you to use for your medical expenses.
• Dependent Childcare Account (DCA) – You will not be able to use payroll-deductions towards Childcare expenses.
• You will not be able to switch between the PPO and HDHP (or vice versa) after 11/22 and will need to stay in the current plan you have for 2024.
• You will not be able to remove or add a dependent unless you experience a QLE (ex. Loss of Coverage).
Have questions?
Need assistance with your Opt Out, medical, dental, vision, FSA, DCA or HSA plans?
Contact City of Lancaster Human Resources for questions/support at cityhr@cityoflancasterpa.gov or (717) 291-4719.
Need assistance with Benematrix platform or the Voluntary Benefits?
Benefit counselors will be available through the BeneChoice Call Center. Click here to schedule your time.
