CDHP with HRA
If you’re ineligible to contribute to a Health Savings Account (HSA), you’re eligible to enroll in the Consumer Driven Health Plan (CDHP) with HRA (Health Reimbursement Arrangements). You'll also automatically be enrolled in the CDHP with HRA if you're a full-time new hire employee who doesn't complete your Health & Welfare enrollment within 30 days of your date of hire.
Here's how the CDHP with HRA works.
K-C's Contribution: K-C credits your HRA annually based on your level of coverage — $700 for Individual or $1,400 for 2-Party and 2-Party Plus coverage.
Paycheck Contributions: You can't contribute to the HRA.
Paying for Care: Your HRA allocation is automatically used to help you meet your deductible as claims are incurred. There is no payment card, and you can’t choose when the HRA dollars are spent. In other words, as covered medical and prescription drug claims are filed, your HRA allotment is used to cover amounts until exhausted.
Carryover: Any unused HRA balance carries over from year to year as long as you continue to be enrolled in the CDHP with HRA. If you enroll in a different K-C medical plan option or leave K-C, any unused HRA balance is forfeited.
Questions: Call Anthem for all medical and HRA questions.
Read below for more information on the CDHP with HRA and how the IRS defines HSA eligibility.
Overview
The table below describes coverage for in-network services only. A separate deductible, out-of-pocket maximum, and coinsurance apply to out-of-network services.
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2025 CDHP with HRA Medical Plan Details
CDHP with HRA Your 2025 annual medical paycheck costs
(excludes tobacco-free discount and working spouse/partner surcharge)Full-Time Employees: Part-Time Employees:
$634 Individual $4,549 Individual
$2,593 2-Party $9,761 2-Party
$4,570 2-Party Plus $14,981 2-Party PlusTobacco-free discount ($240) Working spouse/partner surcharge $1,200 Deductible In-Network: Out-of-Network:
$2,100 Individual $4,200 Individual
$4,200 2-Party $8,400 2-Party
$4,200 2-Party Plus $8,400 2-Party PlusOut-of-pocket maximum In-Network: Out-of-Network:
$4,200 Individual $8,400 Individual
$8,400 2-Party $16,800 Individual
$8,400 2-Party Plus $16,800 IndividualK-C’s HRA contribution $700 Individual
$1,400 2-Party
$1,400 2-Party PlusPreventive care In-Network: K-C pays 100%.
Out-of-Network: You pay 100% until you reach the out-of-network deductible, then K-C pays 60%.Coinsurance In-Network: You pay 100% until you meet the in-network deductible, then K-C pays 80%.
Out-of-Network: You pay 100% until you meet the out-of-network deductible, then K-C pays 60%.Office visits Urgent care Emergency room Hospitalization Lab, X-ray, imaging Mental health inpatient Mental health outpatient Physical (includes chiropractic), speech, and occupational therapy In-Network: You pay 100% until you meet the in-network deductible, then K-C
pays 80%.
Out-of-Network: You pay 100% until you meet the out-of-network deductible, then K-C pays 80%.Prescription drugs Maintenance K-C pays 100% for certain maintenance prescriptions. 1 Generic You pay 100% until you meet the deductible, then K-C pays 80%. Preferred brand Non-preferred brand 1. To learn which maintenance prescriptions are included, log in at caremark.com or call CVS/caremark.
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2024 CDHP with HRA Medical Plan Details
CDHP with HRA Your 2024 annual medical paycheck costs
(excludes tobacco-free discount and working spouse/partner surcharge)Full-Time Employees: Part-Time Employees:
$598 Individual $4,414 Individual
$2,446 2-Party $9,452 2-Party
$4,311 2-Party Plus $14,499 2-Party PlusTobacco-free discount ($240) Working spouse/partner surcharge $1,200 Deductible In-Network: Out-of-Network:
$2,000 Individual $4,000 Individual
$4,000 2-Party $8,000 2-Party
$4,000 2-Party Plus $8,000 2-Party PlusOut-of-pocket maximum In-Network: Out-of-Network:
$4,000 Individual $8,000 Individual
$8,000 2-Party $16,000 Individual
$8,000 2-Party Plus $16,000 IndividualK-C’s HRA contribution $700 Individual
$1,400 2-Party
$1,400 2-Party PlusPreventive care In-Network: K-C pays 100%.
Out-of-Network: You pay 100% until you reach the out-of-network deductible, then K-C pays 60%.Coinsurance In-Network: You pay 100% until you meet the in-network deductible, then K-C pays 80%.
Out-of-Network: You pay 100% until you meet the out-of-network deductible, then K-C pays 60%.Office visits Urgent care Emergency room Hospitalization Lab, X-ray, imaging Mental health inpatient Mental health outpatient Physical (includes chiropractic), speech, and occupational therapy In-Network: You pay 100% until you meet the in-network deductible, then K-C
pays 80%.
Out-of-Network: You pay 100% until you meet the out-of-network deductible, then K-C pays 80%.Prescription drugs Maintenance K-C pays 100% for certain maintenance prescriptions. 1 Generic You pay 100% until you meet the deductible, then K-C pays 80%. Preferred brand Non-preferred brand 1. To learn which maintenance prescriptions are included, log in at caremark.com or call CVS/caremark.
Note: If you’re covered by Collective Bargaining Agreement (CBA), some of these provisions and medical rates may not apply to you. Please refer to your CBA for full details.
Health Savings Account Eligibility
To make or receive contributions to an HSA, the IRS specifies you must meet all of the following requirements:
- You’re enrolled in or will enroll in a high deductible health plan like K-C’s CDHP Blue with HSA or CDHP Green with HSA,
- You’re not enrolled in a separate non-high deductible health plan such a spouse’s HMO or PPO,
- You’re not enrolled in Medicare, Medicaid, or TRICARE,
- You haven’t received benefits from the VA for the last three months,*
- You can’t be claimed as a dependent on another person’s federal tax return, and
- You or your spouse, if married, can't have received or made contributions to a General Use Flexible Spending Account within the calendar year in which you want to make or receive HSA contributions.
If you don’t meet all of the requirements listed above – meaning you’re not eligible for an HSA – you’ll be given an opportunity to designate your HSA ineligibility for the upcoming year during enrollment. You’ll then be offered a CDHP with a HRA that meets IRS regulations.
Medical Veterans Affairs Benefits
The IRS applies a restriction on making or receiving HSA contributions if you receive medical Veterans Affairs (VA) benefits (excluding care for a service-connected disability or preventive care) for the three months prior to an HSA contribution.
Example:
If you have surgery at the VA hospital in June (excluding care for a service-connected disability), you’re ineligible to make or receive HSA contributions for the three months prior to your surgery (March, April, and May). To avoid a tax penalty, you must follow the HSA correction process and withdraw any contributions made to your HSA account while ineligible.
However, if you’re eligible for medical VA benefits, but you’ve not actually received services (or only received services for a service-connected disability or preventive care) in the three months prior to making or receiving an HSA contribution, you're considered HSA eligible and those contributions are yours to keep without tax penalty.
If the IRS restriction on VA medical benefits impacts your ability to make or receive HSA contributions, you still have the option to enroll in the CDHP Blue or CDHP Green with HSA. However, it’ll require you to manage your contributions during any period you’re ineligible by contacting Empyrean through the K-C Benefits Information Line or by logging on to kcbenefitcompass.com to stop and start your contributions in compliance with IRS guidelines. If you don’t want to manage your contributions during ineligible periods, you may want to consider the CDHP with HRA. Find more details about the CDHP with HRA below.
Social Security Retirement Benefits
When you sign up for Social Security retirement benefits, your Medicare Part A coverage automatically begins. If you’re over age 65 when you sign up, the Part A coverage will go back retroactively, up to six months.
To avoid a tax penalty, you should stop contributing to your HSA a) six months before you plan to apply for Medicare or Social Security retirement benefits or b) at age 65, whichever is later. However, you're not required to enroll in Medicare at age 65 if you're still working. Otherwise you may be able to avoid the penalty by making a timely contribution correction (see below for HSA contribution correction process).
HSA Contribution Correction Process
If you determine there were contributions made to your HSA while you were ineligible based on IRS regulations, you can submit a correction to Fidelity, the financial institution that holds your HSA funds. The correction form involves withdrawing the total amount of any employee and employer HSA contributions made within the coverage timeframe for which you were ineligible.
To submit a return of excess contribution request, log in to NetBenefits, go to Accounts & Benefits on the main menu, and select Health Savings Account. Once on the HSA page, select Contributing > Frequently Asked Questions > What if I’m Over the Limit. If you need help, call Fidelity at 800-551-2333. Once you’ve submitted a correction, Fidelity will process your withdrawal. You’ll then receive a check for the amount submitted and the correction will be reported as additional income to the IRS.
Important Note: It’s recommended you contact your tax advisor for guidance before submitting the withdrawal form to Fidelity.