HDHP/HSA

High Deductible Health Plans (HDHPs) are like traditional health plans in that you are covered from catastrophic events. There is an out-of-pocket maximum protecting you or capping your out-of-pocket liability. However, the out-of-pocket maximum and deductibles are usually considerably higher than those in a traditional plan. And you must meet your deductible before the majority of insurance coverage kicks in.

The major benefit of choosing a qualified HDHP is the Health Savings Account (HSA). An HSA is a tax-advantaged savings account. Similar to a flexible spending account, you contribute pre-tax dollars to pay for eligible medical expenses. Unlike a flex account, you never forfeit what you don’t spend. Your money carries over from year-to-year and even from employer-to-employer. You and your employer can elect to contribute to an HSA up to the IRS limits (check with the IRS for the most up to date contribution limits).

You can’t contribute to an HSA if you are currently participating in a general purpose flex account. Also, the following things must apply to you to qualify:

• You're enrolled or enrolling in a qualified HDHP.
• You’re not covered by any non-HDHP plan.
• You’re not claimed as a dependent on someone else’s tax return.
• You’re not enrolled in Medicare.
• You’re not covered by a general purpose Health Reimbursement Arrangement.

If you’re disqualified for an HSA, you may enroll in the HDHP alone, but you’ll miss out on one of its major benefits.

This brochure explains more about HDHPs/HSAs

Log into your HSA account balance:

• HealthEquity
• HSA Bank