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CDHP AND HEALTH SAVINGS ACCOUNT (HSA)
When you participate in an What is a Consumer-Driven Health Plan (CDHP)?
HSA, you are not eligible for
the Healthcare FSA. If you Here are the Basics of How CDHPs Work
are currently enrolled in a Except for preventive services and certain preventive prescriptions, you
Healthcare FSA, you cannot pay for 100% of your medical and prescription drug services until you
contribute to an HSA until meet the plan’s annual deductible. You have one deductible to satisfy
you are no longer enrolled in a for both medical and prescription drug services. After that, you share the
Healthcare FSA. medical and prescription costs with the insurance carrier until you reach
your out-of-pocket maximum amount for the year. As a reminder, you pay
In addition, you may not the network discounted rate when services are rendered by in-network
contribute to an HSA while providers. Once you reach your out-of-pocket maximum amount, the
your spouse is contributing to a insurance plan will pay all of your costs; you pay nothing more for the
Healthcare FSA through his or her remainder of the plan year.
employer. Conversely, a spouse
may not contribute to a Healthcare Why Do We Offer CDHPs?
FSA while you are contributing CDHPs encourage individuals to become more active in making
to an HSA. Unlike the Healthcare healthcare decisions. The actual cost of services under a CDHP has more
FSA, HSA funds are not available impact on you than under traditional plans. Conversely, under traditional
until they have been accumulated plans, you often just pay a lat dollar copay and may not realize the actual
in your HSA account. costs of your doctor’s visits and prescriptions. A CDHP puts you in
the driver seat and in better control of how much you spend on your
healthcare.
What is a Health Savings Account (HSA)?
When an associate participates in a qualiied CDHP (and is not covered
by another non-CDHP medical plan), associates are eligible to participate
in a Health Savings Account (HSA). A HSA allows associates to pay
for qualiied healthcare expenses under a CDHP with pre-tax dollars,
thus reducing taxable income. Associates can make contributions to the
account up to the allowed maximum contribution limits. These funds can
be withdrawn at any time to cover qualiied medical expenses as deined
by the IRS, such as deductibles, medical services, pharmacy charges, or
post-retirement medical expenses, for example. Contributions made to the
account will automatically roll over year after year.
8 2019 Benefits Enrollment
When you participate in an What is a Consumer-Driven Health Plan (CDHP)?
HSA, you are not eligible for
the Healthcare FSA. If you Here are the Basics of How CDHPs Work
are currently enrolled in a Except for preventive services and certain preventive prescriptions, you
Healthcare FSA, you cannot pay for 100% of your medical and prescription drug services until you
contribute to an HSA until meet the plan’s annual deductible. You have one deductible to satisfy
you are no longer enrolled in a for both medical and prescription drug services. After that, you share the
Healthcare FSA. medical and prescription costs with the insurance carrier until you reach
your out-of-pocket maximum amount for the year. As a reminder, you pay
In addition, you may not the network discounted rate when services are rendered by in-network
contribute to an HSA while providers. Once you reach your out-of-pocket maximum amount, the
your spouse is contributing to a insurance plan will pay all of your costs; you pay nothing more for the
Healthcare FSA through his or her remainder of the plan year.
employer. Conversely, a spouse
may not contribute to a Healthcare Why Do We Offer CDHPs?
FSA while you are contributing CDHPs encourage individuals to become more active in making
to an HSA. Unlike the Healthcare healthcare decisions. The actual cost of services under a CDHP has more
FSA, HSA funds are not available impact on you than under traditional plans. Conversely, under traditional
until they have been accumulated plans, you often just pay a lat dollar copay and may not realize the actual
in your HSA account. costs of your doctor’s visits and prescriptions. A CDHP puts you in
the driver seat and in better control of how much you spend on your
healthcare.
What is a Health Savings Account (HSA)?
When an associate participates in a qualiied CDHP (and is not covered
by another non-CDHP medical plan), associates are eligible to participate
in a Health Savings Account (HSA). A HSA allows associates to pay
for qualiied healthcare expenses under a CDHP with pre-tax dollars,
thus reducing taxable income. Associates can make contributions to the
account up to the allowed maximum contribution limits. These funds can
be withdrawn at any time to cover qualiied medical expenses as deined
by the IRS, such as deductibles, medical services, pharmacy charges, or
post-retirement medical expenses, for example. Contributions made to the
account will automatically roll over year after year.
8 2019 Benefits Enrollment
