High Deductible Health Plan High Deductible Health Plan (HDHP) Use the resources below to understand the HDHP for your eligible employees. Document Name Description 2021 HDHP Benefit Booklet This is the benefit booklet for those employees enrolled in the HDHP. 2021 HDHP Enrollment Guide This is the enrollment guide that HBRs can use for those eligible for the HDHP. HDHP Quick Guide The State Health Plan has created the HDHP Quick Guide to assist HBRs with questions on the eligibility, enrollment, policies and procedures for the High Deductible Health Plan. A Reference Guide for non-BEACON Employing Units to the Pay or Play Rules under the Affordable Care Act The State Health Plan has created a Reference Guide to provide additional guidance to assist employing units in navigating through the HDHP eligibility requirements. This guide can be used as a reference tool; however, you will need to seek guidance regarding your specific needs with your employing unit's legal counsel. Retiree Termination Process Effective January 1, 2016, employing units had to make the decision to offer the High Deductible Health Plan (HDHP) or the benefits traditionally offered to active employees (70/30 PPO Plan and 80/20 PPO Plan) to a rehired retiree that meets the eligibility requirements of a non-permanent full-time employee. While the rehired retiree is not required to enroll in a plan, the retiree is no longer eligible for the State Health Plan retiree group coverage under the Retirement System as required by NC General Statute 135-48.41(j). Therefore, the Plan will terminate the retiree from the State Health Plan retiree group coverage under the Retirement System. To document the offer, you must update eBenefits with the retiree's information. To notify the Plan, HBRs will need to complete the retiree termination of coverage process using the Exception Form. Click here for Step-by-Step instructions. Once the online exception form is completed and received by the Plan, the Plan will terminate the retiree’s coverage under the Retirement System and notify the HBR via email. The rehired retiree has 30 days to elect coverage once he/she becomes eligible under the employing unit. The HBR is responsible for relaying this process to the rehired retiree as no notice will be sent to them regarding termination of coverage. If you are offering the HDHP, the 70/30 PPO Plan or the 80/20 PPO Plan, you will need to add the rehired retiree to eBenefits as a new employee or rehired employee. If you need assistance adding the rehired retiree, please call the HBR Support Line at 800-422-5249, create a case via One Place 365, or reach out to your Account Manager, if you have one assigned. High Deductible Health Plan FAQs If an employee has the High Deductible Health Plan coverage, and they lose their job, is this plan eligible for COBRA continuation? Yes, members enrolled in this plan are eligible for COBRA. If they waive coverage do we still have to enter them into the enrollment system? Yes, all eligible employees should be loaded into the system to allow for them to enroll or waive coverage. Those who do not enroll within the appropriate timeframes will not be eligible to enroll until the next Open Enrollment. What happens when an employee stops paying premiums? If an employee does not pay their bill, they will be terminated from coverage due to non-payment. What is the grace period for canceling coverage for non-payment? Premium payments are due by the first of the effective month. Members who do not pay by the end of the effective month will be terminated the first of the following month. Can the employer portion only be paid by going online? Can paper checks be submitted? Employers will be able to pay online and paper checks will also be accepted. Are charter schools required to participate? Yes, charter schools are required to participate. How will we know if an employee has paid their premium before we pay the employer share? Groups are required to pay as billed. The group premium payments are due by the first day of the effective month. Groups will receive a premium credit on a subsequent month for any employees that are terminated for non-payment. The HBR portal will display terminated members. Will we have the ability to send eligibility files or is this a one-by-one approval? Initial enrollment can by uploaded from a file or loaded manually one by one. Please contact the State Health Plan at firstname.lastname@example.org if you are interested in utilizing EDI for ongoing enrollment maintenance. When will the premiums be due for the employee and the employer? Both group and employee premium payments are due in full by the first day of the effective month. Can employees decline this coverage? Yes, they are able to decline coverage. Is there a way to see who has paid their premiums? Yes, the eBilling portal has a billing functionality to allow you to view employees. If this person is a retiree and they decline, will that affect their health plan benefits being paid by the Retirement Systems? If an employee qualifies for this coverage, they are no longer eligible for Plan coverage under the Retirement Systems. Has there been any discussion regarding payroll deduction? Will this be an option or is it all going to be direct billed? Providing a direct bill for these employees will be the standard approach. Groups interested in using payroll deductions for their members may contact the Plan at HBRInquiries@nctreasurer.com for an exception. Does the employer have to provide the email address for employees on the census load so the employee can register? No, an email address will not be required for a member to enroll online. How will we be getting the group bill? Are premiums paid in advance? Who's responsible for reconciling premiums and tracking employee payment to ensure we pay the right amount? This is an eBilling system; therefore, your premium bill will be available in the eBilling portal. Premiums will be due on the first day of the effective month. Groups are responsible for reconciling their bills on a monthly basis. Will we have to approve tasks in eBenefits? Yes, you will have to approve an employee’s activity in the eBenefits enrollment system. Will the employer be responsible for submitting payment on behalf of these newly eligibles? No, iTEDIUM, the Plan’s billing administrator, will be billing the members monthly. Employers will not have to bill employees for this plan. How will we be billed and how will we make payment? Employing units will be able to log into the portal and view their invoice. You will be able to submit payment via ACH or by check. If employee enrollment is effective January 1, does that mean they will have to pay premiums in December? January premiums are due by January 1. How will we be made aware of changes that an employee makes on their own? HBRs must approve any qualifying life event changes. Additionally, HBRs have access to various employee reports and can view the employees’ records. Will employees pay premiums current or one month in advance? Employees will receive a bill the month before payment is due. How current will the billing report be? The bill will be as current as the enrollment entered the day before the bill run. Are employers given a choice as to whether premiums are collected by iTEDIUM, or the agency? Providing a direct bill for these employees will be the standard approach. Groups interested in using payroll deductions for their members may contact the Plan at HBRInquiries@nctreasurer.com for an exception. Can you give some examples of work schedules which would qualify for this HDHP? Any employee who meets the definition of a full-time employee under the Internal Revenue Code, i.e., an employee with 30 hours of service or more per week during a month or with 130 service hours in a month, is eligible for coverage. This could include employees acting as substitute teachers or filling other positions on a temporary basis. How many months running does a non-permanent employee need to work full time before the HDHP is required to be offered? Any employee who meets the definition of a full-time employee under the Internal Revenue Code, i.e., an employee with 30 hours of service or more per week in a month or with 130 service hours in a month, is eligible for coverage. If we use the Safe Harbor method for these non-permanent employees, would we need to use the Safe Harbor method for our permanent employees (to determine if working 30 hours per week)? Yes, in order to avoid IRS penalties, you must identify any common law employee – regardless of how classified (permanent or otherwise) – and offer those employees coverage that is affordable and has minimum value. Keep in mind that permanent full-time employees, those employed in permanent job 5 positions on a recurring basis who work 30 or more hours per week for nine or more months per calendar year, are eligible for other coverage with the State Health Plan and not the HDHP. For any special requests needed for the HDHP coverage, will we use the same exception process that we use now for other employees? The process will be the same and you will use the same exception form. How can members enroll in a Health Savings Account (HSA)? Various banks and credit unions offer an HSA. Eligible members are responsible for setting up their own Health Savings Account. Does the State Health Plan provide an enrollment form for employees to complete if they cannot enroll online? Enrollment is only available online. Members without computer access are able to call to enroll. Will the HBR be responsible for entering all key data on an eligible employee? Yes, HBRs will be responsible for uploading information on eligible employees. Do employees need to decline coverage each year? Yes. The Employing Unit has to show that it made the offer of coverage and so it is important to capture when an employee declines coverage. Will you explain the difference between the department census and the enrollment report once again? The department census shows all employees (and dependents, if selected) that are actively enrolled in benefits. If an employee has waived coverage they will show on this report as well. The enrollment report will show all pending enrollments for employees and dependents, as well as the pending benefit the employee has selected. For those employers selecting the month-to-month measurement evaluation, will the State Health Plan require a participation length longer than a month? If so, what is the length required? There is no required length of coverage if offering coverage on a month-to-month basis. If an employee does not have the required number of hours of service in a month, they are not eligible for coverage. Thus, if they have 130 hours in January, they would need to be offered coverage for January. If they then have 115 hours in February, they would not have to be offered coverage but they would be eligible for COBRA. The termination should be completed within the effective month of the termination. This intermittent offering of coverage will be difficult to administer and is not recommended. If a retiree comes back to work but has less than 30 hours of service per week, is the retiree able to maintain health benefits through the Retirement Systems? Yes. If the retiree is not eligible for coverage as a full-time employee of an employing unit, then the retiree remains eligible for health benefits as a retiree through the Retirement Systems.