New for 2026

Check out this video to learn about what’s changing for 2026. You can view a Spanish version of this video here. You can also read a letter from our VP of Total Rewards and HRIS for more details about this year’s enrollment, and an Overview for a high-level summary of your key benefits.

2026 Payroll Contribution Amounts for Medical Plans

See new contribution amounts for medical coverage. There are no increases to dental or vision coverage.

Updated Health Care Flexible Spending Account (FSA) Limit

• Contribution limit is increasing to $3,400 for 2026
• You may carry over $680 into 2027

Expanded Preventive and Personalized Care Programs

We’re introducing several new programs to help you identify health issues earlier and to better understand and manage current conditions:

• Catapult Health* — A virtual preventive care platform
• Color Health* — A proactive cancer program
• Teladoc Health for Diabetes and Hypertension* — Enhanced digital tools and coaching for personalized support
• Progyny support for Pregnancy & Postpartum*, Parent & Child Well-Being and Menopause* — Expanded resources through our trusted fertility and family-building partner

* Must be enrolled in a UHC medical plan in order to participate.

Updated Health Saving Account (HSA) Limit

The amount you can contribute to an HSA is increasing as shown below. These are combined limits that include both your contributions and the contributions Watts makes to your account. Watts doesn’t monitor these contributions, so be sure you don’t exceed the limit to avoid IRS penalties.

As a reminder, if you are age 55 or older, you may make additional pre-tax contributions of up to $1,000 a year.

Keep in mind that you must be enrolled in either the HSA Basic or HSA Plus Plan to open or contribute to an HSA. If you enroll in an HSA plan, you can’t contribute to a Health Care FSA.

New EAP Provider: TELUS Health

TELUS Health is a global leader in mental health and well-being services and offers a broader range of confidential support services, including 24/7 counseling, digital wellness tools, and expanded access to mental health professionals.

The change to TELUS Health will be effective January 1, 2026. Cigna will continue to be available through December 31, 2025.

Program Retirements

Castlight and Rethink will be removed from Watts benefits effective January 1, 2026. We are confident that our new and expanded services will continue to meet your needs with even greater impact.

What’s Not Changing

There are no changes in plan design or carriers for the medical, dental and vision plans. There are no contribution increases for dental, vision, life insurance, disability and legal coverage.

You have prescription drug coverage for all three medical plan options through Express Scripts. How you pay for your prescription drugs varies, depending on the medical plan option you choose. For more information, visit Express Scripts.

Watch the Benefits video for more detail about the plans and programs. You can view a Spanish version of this video here.