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How To Maximize Your Baylor Scott & White Health Benefits Package

| August 26, 2018
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Baylor Scott & White Health is the largest not-for-profit healthcare system in Texas encompassing 48 hospitals and employing over 47,000 people.  They provide excellent benefits including retirement, healthcare, life insurance, and much more. ClearVista Financial understands the Baylor Scott & White Health benefits to help their clients take full advantage of what’s being offered to them at work.

Key Benefits Of Baylor Scott & White Health Benefits Package

Here are the highlights of benefits that the company offers their employees:

1. Retirement Savings Plans:401(k)/403(b)

2. Health Insurance: Health Reimbursement Account (HRA) Plan, Health Savings Account (HSA) Plan, Preferred Provider Organization (PPO) Plan

3. Flexible Spending Account (FSA):General-purpose healthcare FSA, Limited-purpose healthcare FSA, Dependent day care FSA

4. Prescription Coverage

5. Dental: MetLife PPO, MetLife PPO Plus

6. Vision:Superior Vision

7. Insurance:Life Insurance, Supplemental Life Insurance,Accidental Death & Dismemberment (AD&D), Supplemental Accidental Death & Dismemberment (AD&D), Short-Term Disability, Voluntary Short-term Disability, Basic Long-Term Disability, Voluntary Long-Term Disability

1. Retirement Savings Plans

401(k)/403(b)

Depending on your classification, you can use either the 401(k) or 403(b) account. Baylor Scott & White Health match dollar for dollar up to the first 5% of your eligible pay.  After three years of service, your employer match is 100% vested. The plan is administered by Empower Retirement. If you’d like more help with investing your retirement account at work, Financial Engines offers an investment management service for an additional fee or you may consult your financial advisor.  Participants are eligible for in-service withdrawals or Rollovers at age 59 ½ .

2. Health Insurance

Health Reimbursement Account (HRA) Plan

This plan has a higher deductible with HRA dollars offsetting certain copays and deductible expenses.  The HRA helps you meet your deductible and out-of-pocket maximum. Baylor Scott & White Health contributes between $1,000-$2,000 to your HRA.  This money is used to pay for care.

Health Savings Account (HSA) Plan

This plan allows you to defer pre-tax dollars for future medical expenses.  The HSA allows you to invest money to use later in life including in retirement.  The company contributes between $500-$1,000 to the HSA account. This plan also has a high deductible.

Preferred Provider Organization (PPO) Plan

This plan offers a lower deductible and the assurance of copays for office visits and most pharmacy costs.  You would have higher premiums coming out of your paycheck but then you have more insurance coverage and lower deductibles than the other two plans.  

3. Flexible Spending Account (FSA)

These accounts allow you to set money aside to use to reimburse yourself for health care and dependent day care expenses incurred during the plan year. You never pay federal income or Social Security taxes on this money. When you have eligible medical expenses, you can pay yourself back from your accounts with before-tax dollars.

General-purpose healthcare FSA

If you chose the HRA or PPO healthcare plan, you can open this account.  For 2018, you contribute between $100 to $2,600. The money can be used for medical, dental, and vision expenses.

Limited-purpose healthcare FSA

If you chose the HSA plan, you can use this account.  You can contribute between $100 to $2,600 for 2018. Until you meet your deductible, you can use your FSA for dental, vision, and qualified expenses the medical plan doesn’t cover.  After you meet your deductible, you can use the FSA money for all eligible medical expenses.

Dependent daycare FSA

This account covers daycare expenses for your child, disabled spouse, elderly parent or other dependents who are disabled.  If you are married, you can contribute up to $5,000 for 2018. If you are married and filing separately, you can contribute up to $2,500 each.  

4. Prescription Coverage

The medical plans include comprehensive coverage of prescription drugs.  The pharmacy network includes Baylor Scott & White Health outpatient pharmacies, most major drug stores, grocery stores, and many independent pharmacies.  With the HRA and PPO plans, you have copays from day one. In exchange for low copays, pharmacy expenses are not eligible for HRA payments. With the HSA plan, you have to meet your deductible before the copays begin.

5. Dental

MetLife PPO

The plan covers 50% of the cost of basic and major care after you pay your deductible.  Orthodontics isn’t covered.

MetLife PPO Plus

80% of the cost of basic care and 50% of major care costs are covered by this plan after you meet your deductible.  Orthodontia and implants are covered at 50%

6. Vision

Superior Vision

The vision plan covers routine eye care, frames, lenses, and contacts after a copay for the care or service provided.

7. Insurance

Life Insurance

The company provides a basic life insurance benefit equal to one times your annual base salary with a minimum of $20,000 and a maximum of $1 million.

Supplemental Life Insurance

You can buy coverage up to three times your annual salary up to $1 million without medical underwriting. Any amount over three times your annual salary will require medical underwriting.  The max amount of supplemental insurance you can buy for yourself is $5 million. You can also purchase up to $75,000 of life insurance for your spouse without underwriting, and up to $250,000 with underwriting.  You may also purchase $5,000 or $10,000 of coverage for your children.

Accidental Death & Dismemberment (AD&D)

The Basic AD&D plan is provided by Baylor Scott & White Health.  This insurance is equal to one times your salary with a minimum of $20,000 and a maximum of $1 Million.

Supplemental Accidental Death & Dismemberment (AD&D)

You can purchase supplemental coverage up to seven times your annual base salary up to $5 million.  You can also purchase $5,000 or $10,000 in coverage for your children.

Short-Term Disability

This insurance pays a portion of your salary for a fixed period up to 180 days if you are sick or injured or the new parent of a child.

Voluntary Short-term Disability

You may also purchase more short-term disability insurance to provide more coverage

Basic Long-Term Disability

This insurance is provided by the company and provides 60% of your base pay up to $15,000 a month.  Once approved, benefits begin on the 181st day of disability and may continue until you reach your normal Social Security retirement age.

Voluntary Long-Term Disability

You can purchase more long-term disability coverage and increase your benefit to 70% of your base salary up to $15,000 a month. This coverage also begins on the 181st day of disability.

Gaining Confidence In Your Baylor Scott & White Health Benefits

Whether you just started working or you’re getting ready for retirement, you will want to feel confident that you are maximizing your benefits offered to you. Here are several ways you can work accomplish this.

1. Start with a Solid Foundation

Review your insurance options carefully and decide how much you truly need.  Are you buying enough life insurance to protect your family in case something were to happen to you? What if you became disabled? You don’t want to have that happen, but you’d be glad at that time if you purchased the disability insurance. Which retirement investments make the most sense for you and your long-term goals?

2. Develop a Plan

You should think of what you want your long-term picture to be. Baylor Scott & White Health provides excellent benefits to its employees. If you’re seeking an early retirement, you need to make sure your actions will get you there. You should be investing heavily in your Baylor Scott & White Health retirement account and likely other places as well.  

3. Avoid High-Cost Investments

If you are investing in the 401(k)/403(b) plan, you should take a few minutes to review all your options. You will want to reduce the fees paid in your accounts. Many people don’t realize they are paying fees in their employer-sponsored retirement plans, such as administration fees, expense charges, or investment management fees. You can look at two similar funds and see that one may have a lot lower built-in expenses. Reducing fees is one way to potentially increase your retirement nest egg.

4. Maintain Proper Asset Allocation

Your retirement portfolio should align with your comfort with risk and you should factor in when you will need to start taking money out. Your allocations should be reviewed at least annually to ensure your portfolio is not to safe or too risky. This is a proactive measure which can reduce risk and increase returns over time. This is especially important as you approach retirement.

5. Get Educated

Knowledge is essential for making informed decisions. Get a clear view of the benefits available to you and speak with an advisor to evaluate how you can maximize them for your financial future and retirement.

If you have questions about your Baylor Scott & White Health 401(k) or have yet to develop your exit strategy, contact my office for a complimentary review. We can discuss what you’re currently doing, what changes may need to be made, and how to structure your exit strategy based on your retirement goals. To get started, call 800-491-4508, email us at mtrice@clearvistafinancial.com, or schedule your free introductory meeting.

About Mark

Mark Trice is an independent financial advisor with nearly a decade of experience in the industry. As the founder of ClearVista Financial, his mission is to help people find financial balance in their lives and to spend life well. Along with providing financial planning and retirement planning to pre-retirees and 401(k) plan participants, he is also an educator. He currently holds the designation of a Certified Financial Educator® through the Heartland Institute of Financial Education. Mark has offices in Austin, Brownwood, Temple, Houston, and Waco, Texas. Along with serving clients in Texas, he also works with individuals in California, Colorado, West Virginia and Virginia. To learn more, visit www.clearvistafinancial.com or connect with Mark on LinkedIn.

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