Health Benefits Overview
|Benefit||Plan Description||Key Features||What’s New This Year?|
|Sparrow Health MNA PPO||Sparrow Health MNA PPO is a preferred provider organization (PPO) which allows you to have services performed either in or out of network.||Offers lower out-of-pocket costs (deductibles and copays) but with a higher monthly premium (payroll deduction)
No co share on most services, including durable medical equipment, after the deductible is met.
Three-tier prescription drug coverage.
Prescriptions can be purchased only at Sparrow pharmacy locations.
|Sparrow Health HSA||An account based medical plan.
Provides a Health Spending Account (HSA) that allows Caregivers to reimburse yourself for eligible expenses.
Sparrow contributes money to a Caregiver’s HSA account annually and Caregivers can choose to contribute on a pre-tax basis as well.
Caregivers own the money in their HSA accounts and they can take the money with them when they leave employment. HSA money at the end of the year rolls over to the next year.
This plan has a higher deductible, but after the deductible is met in network coverage is 100%, except for prescriptions.
|Monthly premiums are less than the other plan options, gives Caregivers more control over how and when they spend their health care dollars and allows Caregivers to save – tax-free – for future health care expenses.
Sparrow employer contribution: $750 (single) or $1,500 (family); HSA Employer Contributions will be prorated monthly based on benefit effective date.
Employer Contributions as a result of open enrollment, or continued participation in the Sparrow Health HSA plan, will be processed after the first pay period in January. All other HSA Employer Contributions will be prorated monthly based on benefit effective date and deposited within 30 days of the benefit election date. Please contact HR for further details.
HSA enrollees are not eligible for the Health Care Flexible Spending Account.
Note: Health Savings Accounts are not available to Caregivers enrolled in a Health Care Flexible Spending Account. You also may not contribute to an HSA if you are enrolled in Medicare Part A and/or Part B.
Four coverage levels: Caregiver only, Caregiver + Spouse, Caregiver + Child(ren), Family.
Four-tier prescription drug coverage after deductible is met; Prescriptions can be purchased at any CVS/Caremark network pharmacy, for the same copay as Sparrow pharmacy locations.
Caregivers electing HSA/FSA benefit options are responsible to manage compliance with IRS HSA/FSA rules. Note regarding contributions: Sparrow automatically makes a one-time annual employer contribution to your HSA account, pro-rated based on effective date. Caregivers are responsible for managing annual HSA/FSA contributions to ensure that the annual IRS limit is not exceeded. Caregivers who should find they have over-contributed in any calendar year would be responsible to request the HSA vendor to distribute any excess contributions from their account by April 15 of the subsequent year.
|Annual vision exam is not included. Note regarding the copay for DAW (dispense-as-written) prescriptions: If a member obtains a brand name drug when a generic is available, the member must pay the difference between the cost of the brand name drug and the cost of it’s generic, in addition to the copay once the deductible has been met. This difference will not apply to the deductible or maximum out of pocket.
If you have a healthcare FSA in 2021 and are electing the Sparrow Health HSA plan for 2022, per the IRS you MUST use all of your 2021 healthcare FSA funds by 12/31/21 in order to open your HSA account January 1. Otherwise, the HSA account cannot be established until April 2022, which includes receipt of the employer contribution. Additionally, if your account is not established until April due to remaining 2021 FSA funds, any expenses incurred from January to March 2022 may not be paid for by funds from the HSA account.
2022 IRS HSA maximum contribution limits increased to: $3,650 (single) and $7,300 (family); Contribution limits include any employer contributions.
The Sparrow Provider Network (SPN) will now include Michigan Medicine providers as In Network on the Sparrow Health HSA plan, administered by PHP.
The Sparrow Health HSA plan, administered by PHP, will now include in network Chiropractic coverage with new in network providers!
The above changes do not apply to the Sparrow Health MNA PPO plan.
Four-tier prescription coverage after deductible.
|Blue Cross, Blue Shield (BCBS) is a preferred provider organization (PPO) which allows you to have services performed either in or out of network.
After your deductible is met, you are responsible for paying a percent copayment on all covered services
|Offers a wider provider network and is for Caregivers that need to seek services outside the Sparrow network (such as a child in college out of state)
Premiums are higher than Sparrow-sponsored plans.
You are not required to select a primary care physician.
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This is a summary of the benefits provided by each insurance carrier and it is not intended to fully describe the details of each benefit plan. Should any questions arise, the contracts in effect will take precedence.