Lower Premiums, Tax Benefits Coming with New Exchange Health Plan Option in 2020
Under a new DoD NAF Health Plan added for 2020, associates and retirees can pay less for insurance premiums. In CONUS, they also can receive tax benefits from health savings accounts.
Under Aetna’s High Deductible Health Plan:
- Premiums will be 15% to 20% lower than Aetna Choice POS II and Traditional Choice plans.
- Participants will pay all non-preventive medical and prescription-drug costs until the plan’s higher deductible is met.
- After meeting the deductible, participants will pay a percentage of covered expenses up to an out-of-pocket maximum while the Exchange pays its portion.
Premiums will be 15% to 20% lower
than Aetna Choice POS II and Traditional Choice plans.
- When the maximum is reached, the Exchange will pay all in-network services for the rest of the year.
- The plan includes the same 100% covered preventive screenings as in the Choice POS II and Traditional Choice plans.
- The High Deductible Plan has the same $150 vision reimbursement benefit as the Choice POS IIand Traditional Choice plans. Dental coverage is not affected.
- The High Deductible Plan will cover drugs on the Preventive Medicine List at a cost share without deductibles, and include the same network of doctors, hospitals and pharmacies as in the Aetna Choice POS II. The Traditional Choice plan does not have networks.
Tax details on health savings accounts
The DoD NAF committee has not determined the deductible and percentages for 2020. Deductibles and percentages will be announced before open enrollment in November and posted to www.nafhealthplans.com.
- CONUS participants the High Deductible Plan may be eligible to open health savings accounts for medical bills. (These accounts differ from flexible spending accounts.) Health savings account offer contributions up to $7,000 a year for a family, compared to $2,650 in a flexible saving account.
- $500 contributions from the Exchange for each single-coverage person and $1,000 for family coverage.
CONUS participants the High Deductible Plan
may be eligible to open health savings accounts for medical bills.
- Money in the account earns tax-free interest.
- Money in the account can be invested when the balance reaches $1,000, and investment earnings are tax-free
- If the money is used for eligible health expenses, there are no taxes when it’s withdrawn
Present plans still to be offered
Aetna will still offer the Choice POS II and Traditional Choice plans for 2020, but these plans will not include health savings accounts. (Flexible spending accounts will still be offered to active employees.)
In OCONUS, participants in the High Deductible Health Plan can open health reimbursement accounts to pay for medical bills. Although these accounts have no tax benefits, the Exchange will still make the same $500 and $1,000 contributions.
ALEX can help
Associates and retirees can use ALEX the Benefits Counselor to compare the 2020 health plan options during this fall’s Open Enrollment. The ALEX application will be programmed with all 2020 details by mid-October.
Associates and retirees can input different scenarios for expected medical care needs, and Alex will suggest the best plan for that situation.
Check back on the Exchange Post website for updates about the High Deductible Plan.