New option available
for health care plan
High-deductible coverage offered
with or without tax-free savings account
November 18, 2009
Alaska Airlines is providing an option to enable employees to participate in the new Health Savings Account Preferred Provider Organization (HSA PPO) health plan, even though they may also be covered by another medical plan. Employees who choose this option would be eligible for the high-deductible PPO features of the plan — including 100 percent coverage for preventive care — but would not be able to participate in the tax-free savings account.
“Numerous employees have told us they’re interested in the new HSA PPO plan, but are disqualified because of Internal Revenue Service rules,” said Tom Richards, managing director of employee benefits. “To accommodate all employees who want to sign up for the new plan, we’ve decided to offer it with or without the savings account feature.”
The IRS does not allow workers to participate in a tax-free health savings account if they’re covered by another medical plan through their spouse’s employer, the military, etc., that does not include high-deductible provisions. Full rules on eligibility for Alaska’s new HSA PPO plan are detailed in the “Getting Started” section of the blue brochure that was included with the open enrollment packet mailed to employees’ homes.
“Employees who want to remain covered by another health plan that has lower deductible limits and also participate in Alaska’s new high-deductible plan may do so with the option we’re offering,” Richards said. “But they should bear in mind this means they won’t enjoy the benefits of saving for current and future medical expenses in a tax-free account.”
The company is contributing $400 for employee-only coverage and $800 for family coverage in tax-free “seed” money for those who sign up for the new HSA PPO plan. Alaska will provide the same seed money to employees who do not qualify for the savings account feature, however, it will be taxed as ordinary income in a paycheck during the first quarter of 2010.
What to do
If you want to enroll in the new HSA PPO plan, but without the tax-free savings account, follow these two steps:
Log on to PeopleSoft no later than Nov. 30 and enroll in the HSA PPO medical plan. The system will then automatically take you to the HSA enrollment page. When prompted for your HSA pledge amount, enter $0.
Send an e-mail by Nov. 30 to AAGBenefits.Inquire@alaskaair.com. Your message should state you have secondary medical coverage that does not qualify for the health savings account and that you want the new high-deductible HSA PPO plan without the HSA savings feature.
If you’ve already chosen a plan in PeopleSoft since open enrollment began and want to make a change, you can do so before Nov. 30. Log on to PeopleSoft again and return to the Benefits area in Self Service, un-select the plan you don’t want, then click on the plan you’d prefer.
Remember: If you want the HSA PPO plan without the HSA savings account, you must also send a message to AAGBenefits.Inquire@alaskaair.com.
For all employees: Whether you’re signing up for the first time or returning to PeopleSoft to change your selections, be sure to click the “save” and “submit” buttons whenever prompted to make sure your plan selections are submitted and finalized.
Important note: If you’re currently enrolled in the regular PPO plan, you don’t have to re-enroll in order to be covered under that same plan next year.
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