Page 7 - TVS 2022 Benefits Guide
P. 7
2022 Benefits Guide
What is an HDHP/HSA?
What is a Qualified What is a Health Savings
High Deductible Health Account (HSA)?
Plan (HDHP)? When an employee participates in a qualiied HDHP
Here are the Basics of How this Kind of (and is not covered by other disqualifying coverage),
Plan Works employees are eligible to participate in a Health
■ Except for in-network preventive services, Savings Account (HSA). An HSA allows employees
you pay 100% of medical and prescription to pay for qualiied health expenses with pre-tax
drug services until you meet the plan’s dollars, thus reducing taxable income. Employees
annual deductible can make contributions to the account up to the
■ After the deductible and out-of-pocket allowed maximum contribution limits. The IRS
maximum are met, Cigna pays 100% of eligible contribution limits for 2022 are $3,650 for individuals
expenses and $7,300 for families. Individuals age 55 and older
may contribute an additional $1,000 to the HSA
Why Do We Have an HDHP Option? under the “catch-up” provision. These funds can
HDHPs encourage individuals to become more be withdrawn at any time to cover qualiied health
active in making healthcare decisions. The actual expenses as deined by the IRS, such as deductibles,
cost of services under an HDHP is more visible to medical services, pharmacy charges, or qualiied
you than under traditional plans. Under traditional dental and vision expenses such as orthodontia or
plans, you often just pay a lat dollar copay and may laser eye surgery.
not realize the actual costs of your doctor’s visits There is no use-it-or-lose-it rule with an HSA.
and prescriptions. An HDHP puts you in the driver Contributions made to the account will automatically
seat and in direct control of how much you spend roll over year after year. There are no vesting
on your healthcare costs. HDHPs also give you the requirements or forfeiture provisions. The account
ability to open a Health Savings Account (HSA), as may be used to help pay for post-retirement medical
long as you meet all of the eligibility criteria.
expenses, such as COBRA premiums and many other
qualiied healthcare expenses.
7
What is an HDHP/HSA?
What is a Qualified What is a Health Savings
High Deductible Health Account (HSA)?
Plan (HDHP)? When an employee participates in a qualiied HDHP
Here are the Basics of How this Kind of (and is not covered by other disqualifying coverage),
Plan Works employees are eligible to participate in a Health
■ Except for in-network preventive services, Savings Account (HSA). An HSA allows employees
you pay 100% of medical and prescription to pay for qualiied health expenses with pre-tax
drug services until you meet the plan’s dollars, thus reducing taxable income. Employees
annual deductible can make contributions to the account up to the
■ After the deductible and out-of-pocket allowed maximum contribution limits. The IRS
maximum are met, Cigna pays 100% of eligible contribution limits for 2022 are $3,650 for individuals
expenses and $7,300 for families. Individuals age 55 and older
may contribute an additional $1,000 to the HSA
Why Do We Have an HDHP Option? under the “catch-up” provision. These funds can
HDHPs encourage individuals to become more be withdrawn at any time to cover qualiied health
active in making healthcare decisions. The actual expenses as deined by the IRS, such as deductibles,
cost of services under an HDHP is more visible to medical services, pharmacy charges, or qualiied
you than under traditional plans. Under traditional dental and vision expenses such as orthodontia or
plans, you often just pay a lat dollar copay and may laser eye surgery.
not realize the actual costs of your doctor’s visits There is no use-it-or-lose-it rule with an HSA.
and prescriptions. An HDHP puts you in the driver Contributions made to the account will automatically
seat and in direct control of how much you spend roll over year after year. There are no vesting
on your healthcare costs. HDHPs also give you the requirements or forfeiture provisions. The account
ability to open a Health Savings Account (HSA), as may be used to help pay for post-retirement medical
long as you meet all of the eligibility criteria.
expenses, such as COBRA premiums and many other
qualiied healthcare expenses.
7
