Page 6 - 2016 Enrollment
P. 6
Open 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 percent if you're 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 percent of your eligible expenses for
the remainder of the plan year.
Maximum Contributions for the Plan Year
IRS Mandated
AFV HSA
Coverage Level Contribution Maximum Contribution Maximum Employee
Contribution
Individual (covering $500 $3,350 $2,850
just yourself)
Family (covering $750 $6,750 $6,000
yourself and any
number of dependents)
Age 55 or older? Add an additional
$1,000 to these
amounts as a catch-up
plan
Employer and employee contributions apply towards the IRS mandated
maximum contributions. AFV contributions will be paid at the beginning of
each quarter, provided you have opened your HSA account.
Employer and employee contributions apply towards the IRS mandated
maximum contributions. 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
6 and Dental Expenses.”
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 percent if you're 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 percent of your eligible expenses for
the remainder of the plan year.
Maximum Contributions for the Plan Year
IRS Mandated
AFV HSA
Coverage Level Contribution Maximum Contribution Maximum Employee
Contribution
Individual (covering $500 $3,350 $2,850
just yourself)
Family (covering $750 $6,750 $6,000
yourself and any
number of dependents)
Age 55 or older? Add an additional
$1,000 to these
amounts as a catch-up
plan
Employer and employee contributions apply towards the IRS mandated
maximum contributions. AFV contributions will be paid at the beginning of
each quarter, provided you have opened your HSA account.
Employer and employee contributions apply towards the IRS mandated
maximum contributions. 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
6 and Dental Expenses.”
