2025 Benefit Changes

• To give employees more choice, Seagate will introduce a new Preferred Provider Organization (PPO) plan. The current High Deductible Health Plans (HDHP 1 and HDHP 2) will be blended into one HDHP option. The new PPO and HDHP plans will replace our current HDHP options, but the medical plan administrator will remain Anthem.
• The PPO plan will have higher bi-weekly payroll contributions, but a lower deductible and out-of-pocket maximum. This plan allows you to use a Health Care Flexible Spending Account for tax-free savings on eligible health care expenses. You can’t contribute to a Health Savings Account, nor receive Seagate’s HSA contribution with the PPO plan.

For more medical plan details, please review the 2025 Medical Plan Comparison chart, Anthem PPO Summary of Benefits and Coverage, and Anthem HDHP Summary of Benefits and Coverage.

The New PPO Option

Here's what you'll pay for coverage in 2025, based on the plan you choose and who you enroll.

A PPO (preferred provider organization) plan offers the flexibility to see any healthcare provider, with greater benefits if you stay in-network. You’ll pay a $30 copay for visits to your primary care doctor, and a $50 copay to see a specialist. The annual deductible will need to be met before the plan pays benefits for services like outpatient surgery and inpatient hospital care. Once you’ve met the out-of-pocket maximum, the plan pays benefits at 100% for remainder of the year.

If you enroll in the PPO plan, you can elect to contribute to a Health Care Flexible Spending Account (FSA) for pre-tax savings on health care expenses. Neither you nor Seagate can contribute to your Health Savings Account (HSA) if you enroll in the PPO for 2025. However, if you have a balance in an HSA account, you may use these funds to cover your PPO copays and deductibles.

The New HDHP Option

The new High Deductible Health Plan (HDHP) has the same design as the current HDHP options. You will be responsible for the cost of prescription drugs and medical services, except for preventive care, until you reach the annual deductible. After meeting the deductible, you and the plan will share the cost of your healthcare (co-insurance). Once you hit the out-of-pocket maximum, the plan will cover 100% of your costs for the rest of the year. The deductibles, co-insurance levels, and out-of-pocket maximums of the two current HDHPs have been blended into one HDHP, as shown below.

If you enroll in the HDHP, you can make tax-free contributions to a Health Savings Account (HSA) that Seagate also contributes to on your behalf.

You can use your HSA money to help cover eligible health care expenses, deductibles, and coinsurance, tax-free. You may also opt to save your HSA funds to use in retirement. The HSA money rolls over from year to year, and it’s yours to keep—even if you leave Seagate.

As a reminder, If you’re enrolling a new dependent, you’ll need to submit the required documentation to verify your dependents’ eligibility for coverage.

Although Seagate’s medical claims costs and health care costs in general have risen consistently year after year, Seagate has absorbed these increases—without passing them along to employees— for the last four years. However, we are no longer able to sustain our high-quality medical plans without changing employee contribution amounts. Employee coverage costs could increase or decrease, depending on what plans are elected in 2025.

Bi-Weekly Employee Contribution Rates for 2021, 2022, 2023 and 2024

Bi-Weekly Employee Contribution Rates for 2025

If you enroll in the new HDHP for 2025, you are eligible for a Health Savings Account (HSA). The IRS has increased the maximum amount that can be contributed to an HSA in 2025 to $4,300 for individuals or $8,550 for families. This means that, in addition to the contribution Seagate makes to your HSA, you can save a bit more, including catch-up contributions if you are or will be 55 or older in 2025. You must enroll to contribute to your HSA in 2025, even if you were enrolled in 2024.

Seagate’s HSA Contribution for 2025

New! In 2025, Seagate’s contribution to HSA accounts will be in the form of an employer match. Seagate will contribute 50% of your annual HSA contribution amount, up to $500 for individual coverage and $1,000 for family coverage. Seagate’s contribution will be made each payroll period over the course of the full calendar year. Be sure to elect your 2025 contribution amount during Open Enrollment to maximize your Seagate matching bi-weekly contribution beginning with the first pay period in 2025.

Making Your HSA Contribution

The following options are no longer available in the enrollment system:

1. Make a One-Time HSA Contribution: This option allowed you to make a single, lump-sum contribution to your HSA.
2. Maximize HSA Contribution: This option automatically set your contributions to reach the maximum allowable amount for the year.

When electing your HSA contribution for 2025, you will need to enter the amount you wish to contribute on a biweekly basis.

2025 IRS Health Savings Account Contribution Limits

Important note for Medicare enrollees: Per IRS regulations, Medicare enrollees may not contribute to an HSA. If you enroll in Medicare, you must discontinue all HSA contributions by waiving coverage in the enrollment system on the US Benefits Enrollment/Changes site. Please call HR Central for assistance. For more information, please refer to the Medicare and the Health Savings Account document.

• The Basic Dental plan will require a paycheck contribution in 2025. All benefits will remain the same as in 2024.
• Coverage for surgical endodontics and complex oral surgery under the Enhanced Dental Plan will be moved from the minor services category to major services. The amount the plan will pay for these services will adjust from 90% to 60% coinsurance up to the annual benefit maximum of $2,500.
• The vision plan is changing from the VSP Signature Plan to the VSP Choice Plan with an updated network, where most employees will continue to have access to the same providers as they do today. Please visit VSP or call your vision care provider’s office to confirm participation in the VSP Choice Plan.
• While most vision benefits remain unchanged, there are nominal increases to lens enhancements.

2025 Employee Contributions for Dental and Vision Coverage

Here’s what you’ll pay for coverage in 2025, based on the plan you choose and who you enroll.

Verifying Your Dependents

Last enrollment season, we asked all employees to take the time to confirm that the dependents they are covering under a Seagate Plan met the eligibility requirements. In 2024, we conducted a dependent eligibility audit, which required employees to provide proof of eligibility for the dependents they’re covering under a Seagate medical plan. If your dependent(s) have been verified, you do not need to verify them again.

If you are adding a new dependent to healthcare coverage for 2025, or if you are currently covering an unverified dependent under your dental and/or vision plan, you will need to provide the appropriate documentation to allow them to remain on your plan. In addition, eligibility for unverified spouses and domestic partners covered under Supplemental Spouse/DP life insurance will need to be verified.

If eligibility verification is not submitted by November 18, coverage for unverified dependents will end on December 31, 2024.

Employee Supplemental Life Insurance

Open Enrollment is your once-a-year opportunity to elect or increase employee supplemental life insurance coverage without experiencing a qualifying life event or completing a medical questionnaire. You may elect or increase coverage by 1 times your annual salary up to 3 times your annual salary or $500,000, whichever is less. Coverage amounts above 3 times annual salary will require proof of good health.

Flexible Spending Accounts (FSAs) and Commuter Benefits for 2025

A Flexible Spending Account (FSA) lets you pay for qualified health care and dependent day care expenses with pre-tax dollars, which reduces your taxable income. You must enroll if you want to participate in an FSA in 2025. Your current 2024 FSA election will not carry over to the new plan year.

• Health Care FSA: If you are not contributing to a Health Savings Account, you can contribute up to $3,300 for 2025.
• Limited Purpose FSA: If you are contributing to a Health Savings Account, you can contribute up to $3,300 in a Limited Purpose FSA for 2025. This type of FSA may be used only for qualified dental and vision expenses, so you can reserve your HSA funds to meet your annual medical deductible.
• Dependent Day Care FSA: You can contribute up to $5,000 in 2025 to pay for day care for dependent children up to age 13 or elder care expenses for your IRS-qualified dependents.

Commuter Benefits: With commuter benefits you can use pre-tax payroll deductions to cover mass transit and parking expenses. You can contribute up to $325 per month per account for 2025.

Important FSA and Commuter Benefits considerations

• If you have a remaining balance in a Health Care or Limited Purpose FSA at the end of 2024, up to $640 will be carried over to your 2025 account with HSA Bank. You’ll have until March 31, 2025, to submit your 2024 claims to HSA Bank. The FSA rollover amount will increase from $640 to $660 for the 2025 plan year.
• If you have unused funds in your 2024 FSA at the end of the year, and you do not elect an FSA for 2025, a 2025 carryover account will be set up for you. Up to $640 will be available to use for 2024 and 2025 dates of service. You’ll have until March 31, 2025 to submit your 2024 claims, and until March 31, 2026 to submit your 2025 claims. Please note: You will not be eligible to contribute to a carryover account.
• FSA carryover does not apply to the Dependent Day Care FSA. Per the IRS, the Dependent Day Care FSA remains a use-it-or-lose-it account.
• Your full 2024 commuter benefit account balance will carry over to 2025 if you elect to participate for 2025.
• You can elect to participate in Commuter Benefits from month to month, and your commuter election will remain in effect until you change it.