Lion Advantage HSA Plan - Part-Time

The Lion Advantage HSA plan is a Qualified High-Deductible Health Plan (QHDHP). It has a lower payroll contribution but a higher deductible than the Lion Traditional plan. Following are some features of the Lion Advantage HSA plan:

•  Medical coverage is the same as for the Lion Traditional plan
• Physician network is the same as for the Lion Traditional plan
• Drug formulary is the same as for the Lion Traditional plan
• In-network preventive care is covered at 100% with no deductible or coinsurance
• Includes a Health Savings Account (HSA) that allows subscribers to use pre-tax funds to pay for future and current health care expenses

With the Lion Advantage HSA plan, there is generally no payment due at the time of service; however, the subscriber will receive a bill from their provider. The subscriber may then choose to pay the bill from a Health Savings Account (HSA) or from other personal accounts. If the bill is paid from a Health Savings account, the subscriber may use the Health Equity debit card, or may pay the provider directly through the claims portal.

With the HSA, there is no requirement to substantiate funds; however, it is recommended that for tax purposes, subscribers keep a record of their payments. A full list of HSA Qualified Medical Expenses is posted by HealthEquity. Also helpful, is an additional list from HealthEquity regarding Non-Qualifying Medical Expense List. Any questions on qualified expenses should be directed to HealthEquity at 866-346-5800.

See Health Savings Account (HSA) below for more information about employer contributions to the HSA, maximum allowable annual contributions to the HSA, and how this type of account may be used to pay for medical expenses throughout the life span.

While all full-time, benefits-eligible employees are eligible, the EMPLOYEE:

• CANNOT be enrolled in Medicare or be collecting Social Security benefits. It is recommended that employees who are returning from retirement consult with their financial advisor regarding implications of dis-enrolling from Medicare to be eligible for the HSA, as they will not be able to collect Social Security benefits unless they are enrolled in Medicare. Once an individual dis-enrolls from Medicare, that person can contribute to the HSA.
• CANNOT be enrolled in another health plan (including Tricare).
• CANNOT have a balance in a HEALTH CARE Flexible Spending Account (FSA).
  • Due to IRS regulations governing HSA plans, Lion Advantage plan members are not eligible to enroll in the Health Care Flexible Spending Account (FSA). If an employee currently has money in an FSA - either through themselves or through a spouse - that person must use all the money in the FSA before enrolling in the Lion Advantage Plan.
  • If two Penn State employees are married and have elected a FAMILY coverage under the Lion Advantage with HSA, a Health Care FSA cannot be opened under either employee. In addition, if you are the Penn State employee and your spouse is employed elsewhere and enrolled in a high-deductible health plan with an HSA, a Health Care FSA cannot be opened by either employee. The IRS does not permit use of a Health Care FSA when contributing to an HSA.
• CANNOT have a J or F Visa; these Visa holders are eligible for the Lion Traditional plan only.
• CANNOT be classified as a Postdoctoral Fellow; Postdoctoral Fellows are eligible for the Lion Traditional plan only.

Details for each plan can be reviewed within the Summary of Benefit Coverage (SBC) and Coverage Grids below:

• 2024 Lion Advantage HSA Coverage Grid (Faculty & Staff)
• 2024 Lion Advantage HSA SBC (Faculty, Staff, Pre-65 Retirees)
• 2025 Lion Advantage HSA Coverage Grid (Faculty, Staff, Non-Medicare Eligible Retirees)
• 2025 Lion Advantage HSA SBC (Faculty, Staff, & Non-Medicare Retiree)

If you have elected to enroll in the Lion Advantage HSA plan, a Health Savings Account (HSA) is automatically opened on your behalf through HealthEquity. Funds to this account are contributed on a tax-free basis and can be used for eligible health expenses and will roll over from calendar year to calendar year. These funds also remain yours should you leave Penn State employment in the future or are no longer eligible to participate in a Penn State medical plan.

Employees enrolled in the HSA and still actively working at Penn State will have a monthly account management fee of $1.00 automatically deducted from their HSA account by HealthEquity. Employees who leave or retire from Penn State will see the monthly account management fee deducted by HealthEquity increase to $3.95 after separated from university employment.

To help get you started, Penn State contributes "seed" money into your account as a new hire, newly eligible due to an IRS qualifying life event, or in January due to your benefits open enrollment based on eligibility. The below seed funding amounts must be taken into account when calculating the maximum annual contributions, the IRS allows into an HSA, also outlined below:

Qualified medical expenses are those incurred by the following individuals:

• Employee and spouse
• Dependents who are claimed on the account holder's tax return
• Any person claimed as a dependent on the account holder's tax return except if:
  • the person filed a joint tax return
  • the person had a gross income of $3,900 or more
  • the account holder, or the account holder's spouse if filling jointly, could be claimed as a dependent on someone else's tax return

A full list of HSA Qualified Medical Expenses is posted by HealthEquity. Also helpful, is an additional list from HealthEquity regarding Non-Qualifying Medical Expense List. Any questions on qualified expenses should be directed to HealthEquity at 866-346-5800.

Call HealthEquity, or visit their IRS information, to learn more about tax dependent versus non-tax dependent claim eligibility under your HSA.

Contribution amount changes may be made on a per pay basis through Workday. Changes will become effective on the next available payroll.

Employees are responsible for ensuring that the annual maximum IRS contribution limit is not exceeded. Penn State is not responsible for tax consequences because of the employee contributing beyond the annual IRS contribution limit. The Penn State contribution is included in the annual IRS contribution limit.