New for 2027

For 2027 we remain committed to investing in benefits and programs that support the health and well-being of you and your family. With significant increases to medical and prescription drug costs nationwide, we’re working to balance affordability with the long-term sustainability of our benefits program. Watts will continue to fund the majority of benefit costs next year. We’re also doubling the annual company contribution to Health Savings Accounts (HSAs). If you’re not currently enrolled in one of the HSA plans, this might be a good year to give them a second look.
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Check out this video to learn about what’s changing for 2027. 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 what you need to know to make your enrollment elections.

2027 Payroll Contribution Amounts for Medical Plans

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

If you cover your spouse, and your spouse has access to other coverage, such as through an employer, you must pay a monthly surcharge. This monthly surcharge is increasing to $100 in January.

Company Contributions to Personal Health Savings Accounts (HSAs)

If you participate in one of the HSA plans (Basic or Plus), Watts will make an annual, pre-tax contribution to your personal HSA. The amount of the contribution is doubling in 2027 as follows:

Employee-Only Coverage 2-Person or Family
$400 $800
You can use this money to pay for current or future health care costs. You can also make your own pre-tax contributions to your HSA.

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.
Coverage Level Employee-Only 2-Person or Family
2027 IRS Contribution Limit $4,500 $9,000
Watts Annual Contribution $400 $800
Remaining Employee Contributions $4,100 $8,200
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.

Updated Health Care Flexible Spending Account (FSA) Limit

  • The FSA contribution limit is projected to increase to $3,500* for 2027
  • You may carry over $700* into 2028

* These are projected amounts. If the IRS issues the final amounts by Oct. 30, we will follow the IRS guidelines. Otherwise, we will continue using the current limits of $3,400/$680.

Plan Design Changes

  • PPO Plan: The deductible is increasing to $1,250 for employee-only coverage and $2,500 for 2-person or family coverage.
  • HSA Plan:
  • Some in-network out-of-pocket limits are increasing:
Plan Coverage Level Out-of-Pocket Limit Effective 1/1/27
HSA Basic Employee-only $7,000
2-Person or Family $14,000
HSA Plus Employee-only $6,000 (unchanged)
2-Person or Family $12,000
  • The way you pay for prescription drugs when you’re enrolled in an HSA plan is changing to 20% coinsurance — for both retail and mail order — once you reach your HSA plan deductible. After you reach the out-of-pocket limit, you will have 100% prescription coverage.
  • All Medical Plans: Introducing Lantern, a specialty care platform
    Watts is partnering with Lantern, a specialty care platform that provides personalized support and connects you to board-certified surgeons for better outcomes, lower costs and faster access. Call Lantern first when you’re having a planned surgery. Working with Lantern is required for bariatric, spinal and joint replacement surgery to receive in-network coverage. See the 2027 Benefits Overview for more information.

What’s Not Changing

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

You continue to 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.

Questions?

If you have any questions about your benefits, you can email [email protected].

2027 Benefits Documents and Links

As you review your benefits and decide on your 2027 elections, the following documents may be helpful: