Healthcare benefits are an important part of your financial plan. Since medical costs can consume a significant amount of your savings, you should make sure you understand your health benefits to get the most value possible.
At Ferguson, you have several healthcare benefits available to you. But, navigating the ins and outs of your Ferguson Healthcare Plan can be complicated.
Let’s get started on helping you simplify your health benefits at Ferguson.
Your medical coverage
At Ferguson, you have a choice between a Consumer-Directed Health Plan (CDHP), or a Preferred Provider Organization (PPO).
The CDHP is a flexible, high-deductible plan offered in combination with a Health Savings Account (HSA). The PPO provides flexibility as well and offers a lower rate for in-network services. Choosing the PPO coverage eliminates the ability to contribute to the HSA.
It’s up to you which plan you participate in. You can choose, or change, your plan during the Annual Enrollment period each year.
If you are currently enrolled in the PPO or CDHP, and you do not make any changes to your benefit elections during Annual Enrollment, you will continue on your current plan.
As noted in this guide, there are new premiums and some plan changes in 2020. Specifically, there is a 3.7% rate increase across all salary bands and coverage tiers, and Live Health Online visits under the CDHP are now $59 before the deductible has been met.
There are a few specific items to remember concerning your CDHP:
If you are enrolled in the CDHP, you will pay the full cost of medical and prescription coverage until the plan deductible has been met.
You may use your HSA debit card for health care expenses.
After the deductible has been met, you are responsible for 20 percent of your in-network medical expenses and prescription costs (subject to minimum and maximum amounts) until you reach the out-of-pocket maximum.
A comparison of the plan deductibles and out of pocket maximums are outlined below:
PPO Deductible:
In network, $1,000 single, $3,000 Family
Out of network, $2,500 single, $6250 family
CDHP Deductible:
In network, $2,200 single, $5,400 family
Out of network, $4,400 single or $10,800 family
PPO Out of pocket maximum
In network, $5,050 single, $10,100 family
Out of network, $9,600 single, $19,200 family
CDHP out of pocket maximum
In network, $6,550 single, $13,100 family (includes prescriptions
Out of network, $13,100 single, $26,200 family (includes prescriptions)
Breaking down the Health Savings Account
If you choose the CDHP as a first-time enrollee Ferguson will contribute $500 for an individual, and $1,000 for family coverage, into your HSA. If you are currently enrolled in the CDHP, you will receive an additional $500 regardless if you are enrolled in single or family coverage.
You can contribute in addition to what Ferguson contributes, up to the annual HSA limit.
For 2020, the limits are $3,550 for individuals and $7,100 for family coverage
Individuals who are over age 55 may contribute an additional $1,000
Any contribution Ferguson makes to your HSA must be included in your annual limit
If enrolled in the CDHP, you want to take advantage of this additional health savings vehicle. HSAs can play a vital role in your long-term savings efforts. With triple the tax benefits (tax-free contributions, growth, and distribution) and compound savings year to year, an HSA can present many long-term financial planning opportunities.
Healthcare Flexible Spending Account
You must re-enroll during Annual Enrollment if you wish to contribute to your FSA in 2020. Unlike the HSA, you are only permitted to roll over up to $500 of unused funds in your health care FSA account. Any remaining balance is forfeited.
Terms stipulate that you have to re-enroll both the health and dependent care FSA each year, or you will not be able to participate in the program(s) for 2021.
During 2020, you may use your FSA health care debit card for 2020 reimbursable expenses only like prescriptions, contacts, glasses, specialist needs, etc. After Dec. 31 do not use your debit card for any claims incurred. For reimbursement, submit claims in your online WageWorks platform.
Please note that if you are switching from the PPO plan to the CDHP plan then you will need to use up all of your prior year FSA balance before becoming eligible to contribute to the HSA.
Delta Dental Plan Details
Have you scheduled your bi-annual cleaning yet? Now is the time to do so. Remember, you can use your FSA funds to help cover any additional costs.
Ferguson uses Delta Dental as their insurance provider. Let’s take a look at the specifics of the plan. The calendar year deductible is $50 for individual or $150 for family and applies to both dental and orthodontic services. The maximum per person enrolled for calendar year dental is $1,500. That means that anything over that amount you are responsible for.
There is also a lifetime orthodontics limit of $1,500.
Blue View Vision Select
You have two choices of vision plan at Ferguson: Gold or Silver. The gold plan offers more benefits, and fewer services require a copay compared to the Silver plan.
It’s crucial to choose a plan that will work best for you. Those who just need a routine eye exam might not have the same needs as someone with a vision condition or ever-changing prescription needs, for example.
Remember, if your vision needs change, you can update your converge during the open enrollment period.
Participate in the Wellness Program
Ferguson has a wellness program that encourages healthy living and activities. This system is completely optional and open to those who are enrolled in a medical plan or not. Through the wellness program, you can earn rewards by completing certain health and fitness-related activities.
If you are enrolled in a medical plan, you can earn rewards by getting a routine physical, completing a maternity program, or going through a smoking cessation program, for example.
When you complete a task or challenge, you earn rewards. It could be in the form of a company step challenge or active minutes or even mindfulness. There are many challenges and activities that you can check out designed to keep you moving and healthy.
The bottom line
Your Ferguson Healthcare benefits are extensive. While we have discussed a comprehensive overview today, you must take some time to review your benefits packet this year. That way, you’ll have a deeper understanding of what is offered and how to choose the right plan for you.
If you’d like help maximizing your Ferguson benefits and developing a personalized financial plan for retirement, give our team a call and we’ll be happy to help.
Mark Fonville, CFP®
Mark has over 18 years of experience helping individuals and families invest and plan for retirement. He is a CERTIFIED FINANCIAL PLANNER™ and President of Covenant Wealth Advisors, an award winning wealth management firm in Richmond and Williamsburg, VA.
Disclaimer:
Covenant Wealth Advisors is a registered investment advisor with offices in Richmond and Williamsburg, VA. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. Covenant Wealth Advisors is not affiliated with Ferguson. Ferguson benefits may change.
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