Piedmont Healthcare Benefits Open Enrollment Guide
Piedmont Healthcare Benefits Guide 2022
As a fee-only financial planning firm based in Georgia, we have deep ties to Piedmont Healthcare and the financial success of their physicians. Our experience and relationships have allowed us to develop advanced expertise around Piedmont Healthcare benefits for physicians.
Benefits are one of the most important aspects of any financial plan. We developed this enrollment guide to help our clients and other Piedmont Healthcare employees better understand their options and navigate the benefit options available to them.
Piedmont Healthcare Health Insurance
You will choose either the Piedmont Exclusive Plan or the Piedmont Choice + HRA Plan. Besides cost, the Piedmont Exclusive Plan is better for care within Piedmont’s network. You’ll save money if all of your care needs are covered by physicians within Piedmont. You’re limited to Cigna LocalPlus Network when accessing care outside of Piedmont.
The Piedmont Choice + HRA plan allows access to more physicians through the Cigna Open Access Plus (OAP) Network. This network offers access to more physicians than the Cigna LocalPlus Network but at a cost. Not only is your premium higher with the Piedmont Choice + HRA Plan, but your out-of-pocket maximums and deductibles are much higher.
Recommendation: Enroll in the Piedmont exclusive plan unless you have complex care needs that require out-of-network care. If you have a specific physician in mind outside of the Piedmont network, you can review which plans cover them here: Find Your Provider
Health Reimbursement Account (HRA)
The Health Reimbursement Account (HRA) is a separate account established when you enroll in the Piedmont Choice + HRA Plan. This account is funded entirely by your employer, and you don’t put your own money into the account.
You can spend the HRA money on your premiums and out-of-pocket medical expenses. The HRA money is tax-free to both you and Piedmont. You’re not eligible to take the money with you after you leave Piedmont since the money belongs to Piedmont.
Healthcare Flexible Spending Account (FSA)
The flexible spending account allows you to deduct funds from your paycheck on a pre-tax basis. These funds may be used to reimburse qualified health care expenses on a pre-tax basis. Your FSA is eligible to reimburse you for insurance copayments, deductibles, qualified prescription drugs, insulin, and medical devices.
For 2022, you can contribute between $100 and $2,850 to a Healthcare FSA. The funds contributed to your FSA are tax deductible from your total income.
If you decide to use the Flexible Spending Account (FSA), ensure you have qualified medical expenses during the plan year and are reimbursed for them. You can roll over $570 of your unused Healthcare FSA funds from 2022 to 2023. Any unused funds beyond $570 after each plan year are forfeited.
Dependent Care FSA
The dependent care flexible spending account allows you to contribute on a pre-tax basis to an account exclusively for the care of your children. If your child is enrolled in preschool, summer day camp, before and after school care, or daycare, then we strongly recommend utilizing the dependent care FSA.
Eligible expenses include dependent care for children under age 13 or disabled. Both parents must be employed to qualify for the dependent care FSA. For 2022, you can contribute $5,000 per year as a married couple but $2,500 if you’re married filing separately.
If you receive regular cleanings and exams every six months, as you should, then the dental plans will be close to breaking even. Where these plans shine is covering dental expenses beyond routine cleanings & exams.
If you routinely do not need fillings, bridges, dentures, or orthodontia, then you should stick with the MAC Plan. The MAC Plan is great for your younger Piedmont employees without children.
The PPO plan favors older families and families with children needing braces. With the PPO Plan, you’ll receive a higher out-of-pocket maximum per person and lower deductibles. If you’re expecting more visits to the dentist, you should opt for the PPO Plan.
The Piedmont Healthcare health insurance plans already cover employees’ annual eye exams. However, the health insurance plans don’t cover contacts and lenses. Therefore, vision insurance plans are helpful when purchasing frames, lenses, and contacts.
The Piedmont Healthcare 401(k) TomorrowPlan is immediately available to employees of Piedmont Healthcare. You’re eligible to contribute pre-tax, Roth, and after-tax contributions as an employee. Piedmont Healthcare will match your contributions up to 6%. If your budget allows, this should be the minimum amount you contribute.
Student Loans & 401(K)
If you’re a resident or attending physician at Piedmont Healthcare, you’re eligible for Public Service Loan Forgiveness (PSLF). Through PSLF, you can have your student loans forgiven after meeting the requirements.
Learn more about PSLF requirements: www.archfinancialplanning.com/pslf-waiver/
If you’re going for PSLF, you must enroll in an income-driven repayment plan for your federal student loans. To maximize forgiveness through PSLF, you want to keep your payment as low as possible. You’ll lower your income-driven repayment plan monthly payment by making pre-tax contributions to your 401k.
You should consider Roth contributions if you’re a resident or in fellowship without student loans. Your income will be much lower during your career than that of an attending physician. You’ll maximize the benefit of the Roth contributions when your income is lower vs. when it’s higher.
Student Loan Planning: Student Loan Advice – Arch Financial Planning
Physician Financial Planning: White Coats – Arch Financial Planning
Piedmont Healthcare 401k Investment Options
Several low-cost index funds are available that let you customize your portfolio are available in your plan. If you’re comfortable with building your portfolio, these are great options at a low cost.
The target date funds are a great option if you’re looking for a more hands-off approach to investing. The target date funds offer diversified portfolios at an additional cost added through the fund’s expense ratio. These funds will invest in a diversified portfolio that becomes more conservative over time.
You can learn more about your investment options here: Piedmont Healthcare 401(K) Investment Options
Piedmont offers the ability to purchase additional life insurance through its employee benefits providers. Obtaining individual life insurance may be less expensive if you’re generally healthy and a non-smoker. Shopping for individual coverage will allow you to evaluate multiple carriers.
We recommend you shop for individual coverage since Piedmont’s group policy and individual policies require additional health underwriting and evidence of insurability.
*Check your beneficiary designations for your life insurance policies and 401k. The people you list as your beneficiaries determine who receives the money if you pass away. The beneficiary designations supersede a will or any other documents.
The short-term disability policy offers salary replacement in the event of a disability or pregnancy for Piedmont Healthcare employees. Piedmont offers 100% income replacement for the disability period after the birth of a child. Coverage generally lasts six to eight weeks.
Long-term disability offers critical coverage for extended periods of disability, injury, or illness. Piedmont provides 50% income protection through their group long-term disability policy with the option to purchase an additional 10%. You should review the occupation requirements to make disability payments if you’re a highly specialized physician.
Sometimes, additional coverage through an individual policy is needed to cover your specific occupation in the event of a disability through an own-occupation rider.
There are numerous options to choose between during open enrollment and starting a new position within Piedmont Healthcare. We hope this guide has given you direction for making the best decision.
We hope you found this guide helpful for Piedmont Healthcare employees not currently working with Arch Financial Planning. If you’re interested in working with us to build a financial plan, you can check out our services for physicians. Our services include all aspects of your financial life, from taxes, retirement, student loans, and employee benefits. You can contact us using the links below to schedule a free assessment.
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