Consumer Directed HealthSelectSM for Retirees

Consumer Directed HealthSelectSM is a high-deductible health plan with health savings account (HSA) for people not enrolled in Medicare. Depending on your health needs, you could pay much more out of pocket for health care than in HealthSelect of Texas® or one of the regional health maintenance organizations (HMOs). But Consumer Directed HealthSelect also lets you save money, tax-free, to help cover your out-of-pocket health costs. For some people, an HSA could be a great way to save money and lower taxable income. But members are responsible for all their non-preventive health costs until they or their family meet the annual deductible. (A deductible is the amount you’d pay before the plan starts paying anything.)

Plan Benefits

One of the key benefits of Consumer Directed HealthSelect is the ability to save money, tax-free, in an HSA for health costs now or far in the future. There is also a monthly state contribution from the state to your HSA (if you’re eligible). 

  • Learn more by reading the Consumer Directed HealthSelect benefits overview.  
  • See the Master Benefits Plan Document for detailed information about your health plan benefits.
  • You do not need to designate a PCP or get a referral to see a specialist under Consumer Directed HealthSelect, but you probably will pay less for care – sometimes a lot less – if you stay in the HealthSelect network. There are more than 50,000 doctors and other providers in the statewide network.
  • In-network preventive services, like vaccinations and annual checkups, are covered at 100%.
  • Except for in-network preventive services, you would pay the full cost of doctor visits, prescriptions and other health care until you or your family reach the annual deductible.
  • To protect you from catastrophic health costs, there is also an out-of-pocket maximum that limits the amount you would have to pay out of pocket each year. (All ERS health plans have an annual out-of-pocket maximum.)

Eligibility and Enrollment

  • The plan is available to Texas Employees Group Benefits Program-eligible retirees and dependents who aren’t enrolled in Medicare. Evidence of insurability is never required to enroll in this or any other ERS health plan. 
  • You can enroll in this plan upon retirement, if you are eligible for Texas Employees Group Benefits Program (GBP) health coverage when you retire.  
  • You can also enroll when you have a qualifying life event (QLE) such as a birth or marriage and coverage will begin on the date of birth or the first of the month following the event. 
  • You can enroll during Summer Enrollment and coverage will begin on September 1 of that year. 

Note: If you lose your ERS health coverage and stay enrolled in Consumer Directed HealthSelect through COBRA, you will no longer get state contributions to your health savings account (HSA). You will pay only the premium for the high-deductible health plan plus the 2% administrative fee to ERS. You can still contribute to your HSA, but you will make your contributions directly to Optum Bank. You will also be responsible for any administrative fees to Optum Bank.