Page 6 - Guide
P. 6
2017 Benefits Enrollment
What is a CDHP and HSA?
A consumer driven health plan (CDHP) and a health savings account
(HSA) together give you the power to have a health plan along with a tool
to save money. The money you contribute to your HSA is deposited tax-
free. Unused funds will roll-over each year allowing you to save money.
An HSA works in conjunction with your health plan coverage. Your
HSA dollars can be used to help pay the health insurance deductible and
qualiied medical expenses, including those not covered by the health
insurance, like dental and vision care. Any funds you withdraw for non-
qualiied medical expenses will be taxed at your income-tax rate, plus 20%
if you are under 65.
Once you meet the calendar-year deductible, you are responsible for
a small portion of your total expense (coinsurance) and your health
insurance pays the remaining covered expenses in accordance with the
terms and conditions of your plan. Once your deductible and coinsurance
expenses total your out-of-pocket maximum, the plan pays 100% of your
eligible expenses for the remainder of the plan year.
Maximum Contributions for the Plan Year
Coverage Level IRS Mandated Maximum Contribution
Individual (covering just yourself on the $3,400
plan)
Family (covering yourself and any $6,750
number of additional dependents)
Age 55 or older? Add an additional $1,000 to these
amounts as a catch-up contribution
Funds you withdraw from your HSA are tax-free when used to pay for
qualiied medical expenses as described in Section 213(d) of the Internal
Revenue Service Tax Code. A list of these expenses is available on the
IRS Web site, www.irs.gov in IRS Publication 502, “Medical and Dental
Expenses.”
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What is a CDHP and HSA?
A consumer driven health plan (CDHP) and a health savings account
(HSA) together give you the power to have a health plan along with a tool
to save money. The money you contribute to your HSA is deposited tax-
free. Unused funds will roll-over each year allowing you to save money.
An HSA works in conjunction with your health plan coverage. Your
HSA dollars can be used to help pay the health insurance deductible and
qualiied medical expenses, including those not covered by the health
insurance, like dental and vision care. Any funds you withdraw for non-
qualiied medical expenses will be taxed at your income-tax rate, plus 20%
if you are under 65.
Once you meet the calendar-year deductible, you are responsible for
a small portion of your total expense (coinsurance) and your health
insurance pays the remaining covered expenses in accordance with the
terms and conditions of your plan. Once your deductible and coinsurance
expenses total your out-of-pocket maximum, the plan pays 100% of your
eligible expenses for the remainder of the plan year.
Maximum Contributions for the Plan Year
Coverage Level IRS Mandated Maximum Contribution
Individual (covering just yourself on the $3,400
plan)
Family (covering yourself and any $6,750
number of additional dependents)
Age 55 or older? Add an additional $1,000 to these
amounts as a catch-up contribution
Funds you withdraw from your HSA are tax-free when used to pay for
qualiied medical expenses as described in Section 213(d) of the Internal
Revenue Service Tax Code. A list of these expenses is available on the
IRS Web site, www.irs.gov in IRS Publication 502, “Medical and Dental
Expenses.”
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