Purdy school district goes with Horace Mann

Wednesday, May 29, 2019

Offers employees better options for FSA, HSA

The Purdy school district has decided to go with Horace Mann for their employees’ health savings account and flexible spending accounts.

Steven Chancellor, Purdy superintendent, said FSA is flexible spending account, and HSA is health savings account.

“The HSA is basically an insurance plan that we offer,” he said. “So, rather than someone taking Plan A that would have a $20 co-pay, and would allow you to do X-Y-Z things, the HSA is us just giving you money.”

Chancellor said rather than purchasing a plan, this money goes into a special savings account that is tied to the employees name.

“Basically, instead of spending the money on an insurance package, they spend the money at the doctor’s office,” he said. “There are limits to it. For example, it usually caps out at about $3,000, and after that traditional insurance kicks in.”

Chancellor said what it is intended for are healthy people that don’t have pre-existing and repetitive health conditions.

“It works for people who don’t go to the doctor a lot or are spending money for continuing medications,” he said. “This is not something to take the place of traditional insurance, but rather a different kind of insurance that we offer.”

Chancellor said before, there wasn’t really a group that was managing that for the employees.

“We had a few employees that elected it, but since it was out of the insurance network, the administration for us was tedious,” he said. “We decided to go with the Horace Mann Group to bring that under the umbrella of everything else.”

Chancellor said the FSA is for things that employees know they will have as routine expenses, like, contacts, medication or planning on having major medical work done, like braces.

“They can have money taken out of their paycheck pre-tax that can go into that account,” he said. “It is the same process like swiping a debit card or turning in a medical receipt, and they can get reimbursed.”

Chancellor said it is just a pre-tax health benefit.

“They can also use that for daycare expenses,” he said. “I believe they are allowed to take up to $5,000, pre-tax and put that toward daycare expenses. Usually, that is for employees that have infants to non-school age children.”

Chancellor said by going through the Horace Mann Group, there is no membership or transaction fees.

“Before, I believe we were getting charged $6 per employee, per month,” he said. “When I first got here seven years ago, we didn’t even have a FSA option, and what we had before Horace Mann Group was the best option at the time.”

Chancellor said it is a leveraging that our medical and health insurance consortium can increase our benefit offering to employees.

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