Page 11 - Guide
P. 11
HDHP Plan 2017 Beneits Enrollment
High Deductible Health Plan (HDHP) with Health Savings
Account (HSA)
To begin to understand the HDHP, you must irst realize there are 2 parts to this
option:
1. It is a full-ledged, major medical PPO plan which offers you coverage at
UHC’s large network of physicians, hospitals, and facilities around the country.
The major difference between the PPO plan and the HDHP is in the HDHP,
everything including prescriptions is subject to the deductible. In the HDHP,
both pharmacy and medical expenses apply toward meeting the same deductible,
as well as the same out-of-pocket maximum. Also, in order for HDHP enrollees
to be able to open an HSA, the plan must meet additional requirements, such as
a minimum deductible amount.
2. The HDHP comes with a health savings account (HSA), which is a special bank
account only available to people who participate in a qualiied high deductible
health plan, which is Hussmann’s HDHP. The HSA allows you to pay out-of-
pocket medical expenses with pre-tax dollars. You will own and administer
your account, and there are no “use it or lose it” restrictions like with the
lexible spending account (FSA) option. HSAs allow you to save and roll over
money if you do not spend it in the calendar year. In fact, if you change health
plans or jobs, the money in the account is yours to keep. As long as you use
it for qualiied medical, dental, or vision expenses, the money you contribute
to an HSA is tax-free when you put it in and when you take it out. Eligible
medical expenses are deined by the IRS. These expenses include such things as
deductibles, coinsurance, prescription drugs, and lab tests. IRS Publication 502
provides a complete list of eligible expenses. A link to this list can be found at HDHP Deductible and
www.irs.gov. Out-of-Pocket Note
Deductibles and out-of-pocket
maximums in the HDHP are
non-embedded, meaning no
individual family member’s
deductible or out-of-pocket is
satisfied until the full family
deductible or out-of-pocket
maximum is satisfied. One
member of the family can meet
the full family deductible or
out-of-pocket maximum.
11
High Deductible Health Plan (HDHP) with Health Savings
Account (HSA)
To begin to understand the HDHP, you must irst realize there are 2 parts to this
option:
1. It is a full-ledged, major medical PPO plan which offers you coverage at
UHC’s large network of physicians, hospitals, and facilities around the country.
The major difference between the PPO plan and the HDHP is in the HDHP,
everything including prescriptions is subject to the deductible. In the HDHP,
both pharmacy and medical expenses apply toward meeting the same deductible,
as well as the same out-of-pocket maximum. Also, in order for HDHP enrollees
to be able to open an HSA, the plan must meet additional requirements, such as
a minimum deductible amount.
2. The HDHP comes with a health savings account (HSA), which is a special bank
account only available to people who participate in a qualiied high deductible
health plan, which is Hussmann’s HDHP. The HSA allows you to pay out-of-
pocket medical expenses with pre-tax dollars. You will own and administer
your account, and there are no “use it or lose it” restrictions like with the
lexible spending account (FSA) option. HSAs allow you to save and roll over
money if you do not spend it in the calendar year. In fact, if you change health
plans or jobs, the money in the account is yours to keep. As long as you use
it for qualiied medical, dental, or vision expenses, the money you contribute
to an HSA is tax-free when you put it in and when you take it out. Eligible
medical expenses are deined by the IRS. These expenses include such things as
deductibles, coinsurance, prescription drugs, and lab tests. IRS Publication 502
provides a complete list of eligible expenses. A link to this list can be found at HDHP Deductible and
www.irs.gov. Out-of-Pocket Note
Deductibles and out-of-pocket
maximums in the HDHP are
non-embedded, meaning no
individual family member’s
deductible or out-of-pocket is
satisfied until the full family
deductible or out-of-pocket
maximum is satisfied. One
member of the family can meet
the full family deductible or
out-of-pocket maximum.
11
