Could the High-Deductible Health Plan with a HSA Be Right for You?

With Annual Enrollment coming in October, this may be the year to enroll in the High-Deductible Health Plan with Health Savings Account (HDHP/HSA). You may find that this plan can save you money. Here’s what you need to know:

1. Preventive care is covered at 100%. Like our other medical plans, all preventive care is 100 percent covered. You don’t need to meet the deductible first.

2. All other services including prescriptions expenses apply to the deductible. You pay the full amount allowed amount by an in-network provider for non-preventive medical services, including office visits, lab work, imaging, tests and prescriptions, until you meet the deductible. After you meet the deductible, the plan starts to pay its share of the costs.

3. You can pay out-of-pocket expenses with the health savings account (HSA). We contribute $600 for individuals or $1,200 for families to your HSA, divided over 26 pay periods. You also can contribute before-tax dollars (up to the IRS limit of $3,550 for an individual or $7,100 for a family). You choose what to do with the money in your account – pay for out-of-pocket expenses now, save it to pay for future medical expenses (even into retirement), or you may choose to invest some of your money to help build your account. You’re in control.

4. You can earn wellness dollars. If you choose to participate in the CHI Wellness Program you can have your earned wellness dollars redeemed for HSA contributions up to $450 for you and $450 for your eligible spouse if they also participate. Don’t forget any earned wellness dollars by you and/or your spouse deposited into your HSA also count toward the IRS limit listed above.

5. You may actually save money. While your out-of-pocket cost for a service may be more under the HDHP than another plan, what you save in the cost of premiums may make up for it. With the HDHP/HSA, you pay less per pay period in paycheck premiums than with the other medical plans.

Can’t decide? Carefully crunch the numbers before choosing your medical plan to determine which plan is best for you. Staying in a plan that no longer meets your needs could cost you money. Use the Health Plan Comparison tool on the well-being pages on InsideCHI to help you decide if the HDHP/HSA is a better fit for you. You’ll see a side-by-side comparison of what each health plan could cost you and which one better meets your needs.

Starting September 25, you can go to the Annual Enrollment section of the well-being pages to use the Health Plan Comparison for 2020, which will include the updated plan rates for next year.

For more information about the HDHP/HSA and other health plans, visit the spending accounts page on InsideCHI.