Page 7 - TVS 2021 Benefits Guide
P. 7
2021
TVS SCS NA Benefits Enrollment
WHAT IS AN HDHP/HSA?
What is a Qualified High Deductible Health
Plan (HDHP)?
Here are the Basics of How this Kind of Plan Works
Except for in-network preventive services, you pay 100% of
medical and prescription drug services until you meet the plan’s
annual deductible
After the deductible and out-of-pocket maximum are met, Cigna pays
100% of eligible expenses
Why Do We Have an HDHP Option?
HDHPs encourage individuals to become more active in making
healthcare decisions. The actual cost of services under an HDHP is more
visible to you than under traditional plans. Under traditional plans, you
often just pay a lat dollar copay and may not realize the actual costs of
your doctor’s visits and prescriptions. An HDHP puts you in the driver
seat and in direct control of how much you spend on your healthcare
costs. HDHPs also give you the ability to open a Health Savings Account
(HSA), as long as you meet all of the eligibility criteria.
What is a Health Savings Account (HSA)?
When an employee participates in a qualiied HDHP (and is not covered
by other disqualifying coverage), employees are eligible to participate
in a Health Savings Account (HSA). An HSA allows employees to pay
for qualiied health expenses with pre-tax dollars, thus reducing taxable
income. Employees can make contributions to the account up to the
allowed maximum contribution limits. The IRS contribution limits for
2021 are $3,600 for individuals and $7,200 for families. Individuals age
55 and older may contribute an additional $1,000 to the HSA under the
“catch-up” provision. These funds can be withdrawn at any time to cover
qualiied health expenses as deined by the IRS, such as deductibles,
medical services, pharmacy charges, or qualiied dental and vision
expenses such as orthodontia or laser eye surgery.
There is no use-it-or-lose-it rule with an HSA. Contributions made to the
account will automatically roll over year after year. There are no vesting
requirements or forfeiture provisions. The account may be used to help
pay for post-retirement medical expenses, such as COBRA premiums and
many other qualiied healthcare expenses.
7
TVS SCS NA Benefits Enrollment
WHAT IS AN HDHP/HSA?
What is a Qualified High Deductible Health
Plan (HDHP)?
Here are the Basics of How this Kind of Plan Works
Except for in-network preventive services, you pay 100% of
medical and prescription drug services until you meet the plan’s
annual deductible
After the deductible and out-of-pocket maximum are met, Cigna pays
100% of eligible expenses
Why Do We Have an HDHP Option?
HDHPs encourage individuals to become more active in making
healthcare decisions. The actual cost of services under an HDHP is more
visible to you than under traditional plans. Under traditional plans, you
often just pay a lat dollar copay and may not realize the actual costs of
your doctor’s visits and prescriptions. An HDHP puts you in the driver
seat and in direct control of how much you spend on your healthcare
costs. HDHPs also give you the ability to open a Health Savings Account
(HSA), as long as you meet all of the eligibility criteria.
What is a Health Savings Account (HSA)?
When an employee participates in a qualiied HDHP (and is not covered
by other disqualifying coverage), employees are eligible to participate
in a Health Savings Account (HSA). An HSA allows employees to pay
for qualiied health expenses with pre-tax dollars, thus reducing taxable
income. Employees can make contributions to the account up to the
allowed maximum contribution limits. The IRS contribution limits for
2021 are $3,600 for individuals and $7,200 for families. Individuals age
55 and older may contribute an additional $1,000 to the HSA under the
“catch-up” provision. These funds can be withdrawn at any time to cover
qualiied health expenses as deined by the IRS, such as deductibles,
medical services, pharmacy charges, or qualiied dental and vision
expenses such as orthodontia or laser eye surgery.
There is no use-it-or-lose-it rule with an HSA. Contributions made to the
account will automatically roll over year after year. There are no vesting
requirements or forfeiture provisions. The account may be used to help
pay for post-retirement medical expenses, such as COBRA premiums and
many other qualiied healthcare expenses.
7
