Page 4 - Open Sky BROCHURE - HOURLY 2021-2022

9/1/2021-8/31/2022 Employee Benefits Brochure
Hourly

Insurance Terminology

Health Savings Account (HSA) - An HSA is a health savings account available to taxpayers who
are enrolled in a high-deductible HSA-qualified health plan. Funds from these accounts must be used
to pay for qualified health expenses. The money accrued in this account can be rolled over year after
year. Funds contributed to the account are not subject to federal income tax at the time of deposit.
The IRS sets annual limits on the amounts that can be deposited for individuals and families. Below is
a listing of the advantages if you’re considering an HSA:

• Plans will be lower in premium but may have a higher deductibles to be satisfied.
• Contributions are typically made with pre-tax dollars, which means they are not subject to federal

income tax.

• Withdrawals from your HSA are not subject to federal (or in most cases, state) income taxes if

they are used for qualified medical expenses.

• If you have money left in your HSA at the end of the year, it rolls over to the next year.
• The money in your HSA remains available for future qualified medical expenses even if you

change your HSA-qualified health insurance plan, change employers or retire. Funds left in your

account continue to grow tax free.

If you are interested in opening a Health Savings Account, you may do so through the bank of your
choosing. Open Sky Wilderness Therapy does not manage or administer Health Savings Accounts on
behalf of employees though they do offer a High Deductible Health Plan.

Preferred Provider Organization (PPO) - a type of health plan that contracts with medical
providers, such as hospitals and doctors, to create a network of participating providers. You pay less if
you use providers that belong to the plan’s network. Most commonly, a PPO operates as follows:

• You do not need referrals to see specialists and you do not need to be assigned to a Primary Care

Physician.

• You can use doctors, hospitals, and providers outside of the network for an additional cost.
• Your monthly premiums will be higher than that of an HMO plan.

• Typically, the lower your deductible is, the higher in monthly premium you will pay.

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