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Keith County hears plan to offer HSA option alongside existing plan
Summary
A NovoConnection consultant told commissioners Keith County could add a high-deductible health plan paired with Health Savings Accounts as an optional employee choice, explaining tax benefits, contribution limits, a minimum IRS deductible and implications of a midyear change; no binding plan design or premium rates were approved.
Keith County commissioners heard a presentation on adding a voluntary high-deductible health plan that would allow employees to open Health Savings Accounts (HSAs) while keeping the county’s current plan.
Thomas, a consultant with NovoConnection, told the board the county would continue to offer the existing plan and add the HSA-qualified high-deductible option for employees who prefer it. "Right now Keith County offers a flexible spending account," Thomas said, describing the main difference: money in an FSA is typically available up front but is subject to use-or-lose rules, while HSA funds "are your dollars regardless of where you are employed" and can roll over year to year.
Thomas said IRS rules set a minimum individual deductible for HSA-qualified plans. "The minimum deductible that we could Keith County could offer for this type of a plan would be a $3,300 deductible," he said, and noted a typical family deductible would be roughly double that. He described contribution caps based on coverage: in discussion he cited roughly $4,300 for individual coverage and $8,500 for family coverage (figures Thomas said would be confirmed by plan design) and explained a midyear change would prorate contributions for the first year (if implemented in July employees could contribute only half of the annual limit for that transitional year).
Thomas emphasized tradeoffs: higher out-of-pocket exposure for employees in exchange for tax-advantaged savings and long-term growth of HSA funds. He also warned that HSAs do not permit first-dollar co-pay benefits until the deductible is met; preventive care remains covered per IRS rules.
The consultant addressed practical questions: an HSA is a personally owned account that employees typically open with a bank of their choice; the county could select a single vendor to facilitate payroll contributions but would likely leave account ownership to individuals. Thomas also said some operational details — including exact premium differences and plan design — remained under discussion and would be presented to employees in the spring.
During the same presentation Thomas (NovoConnection) noted network changes affecting the county’s insurer: "Aetna is no longer gonna be, accepted by CHI," he said, and offered to provide staff a list of providers that have direct contracts so affected members could verify in-network status.
Next steps: staff will bring back specific plan design options and premium figures before the board takes any formal action. No change in benefits was adopted at the meeting.
