Don't leave money on the table! HDHP Members are granted: $900 (Self) or $1,800 (Self Plus One or Self and Family).
What is a High Deductible Health Plan (HDHP)?
A High Deductible Health Plan, or HDHP, is typically a lower cost health plan in which the member is responsible for fully satisfying a Deductible and paying for initial healthcare expenses. A Deductible is the amount of money a member or family pays out of pocket each year before the Plan benefits begin. The deductible is $2,000 for Self enrollment, or $4,000 for Self Plus One, or Self and Family enrollment. Once your deductible is met, you will be responsible to pay 20% Coinsurance on most benefits, up to your Maximum Out-of-Pocket of $6,000 for Self enrollment, or $12,000 for Self Plus One, or Self and Family enrollment. HDHP plans may be coupled with unique banking accounts which hold pre-tax funds used to help cover the Deductible expenses or your post-deductible cost share.
An HDHP is “qualified” plan which means it must adhere to federal guidelines which allow it to be combined with a Health Savings Account (HSA). By law, only a select set of benefits such as preventive services or prescriptions are allowed to be covered before the deductible on an HDHP and there are specific guidelines which determine who may be eligible for an HSA.
What is a Health Savings Account (HSA)?
A health savings account (HSA) is a savings and spending account that offers members a tax-advantaged way to pay for qualified medical expenses. You can also save for future medical and retirement healthcare expenses. In order to open an HSA, you must be enrolled in a qualified high-deductible health plan (HDHP) and cannot be enrolled in any other health plan, Medicare, Tricare, Flexible Spending Account, claimed as a dependent on another’s tax return and cannot have accessed their VA benefits for non-service-related issues within the last 90 days.
In 2023, for each month you are eligible for a premium pass through, we will contribute to your HSA $75.00 per month for a Self Only enrollment or $150.00 per month for a Self Plus One or a Self and Family enrollment. In addition to our monthly contribution, you have the option to make additional tax-free contributions to your HSA, so long as total contributions do not exceed the limit established by law, which is $3,850 for Self Only enrollment and $7,750 for Self Plus One or Self and Family enrollment for 2023. The IRS allows you to contribute up to $1,000 in catch-up contributions for 2023, if you are age 55 or older.
Your HSA earns tax-free interest on any investment gains through a choice of voluntary investment options (available for accounts with a balance greater than $2,000). Any unused HSA funds and interest accumulate from year to year. The HSA is portable – it is owned by you and is yours to keep, even when you leave Federal employment or retire.
What is a Health Reimbursement Arrangement (HRA)?
A Health Reimbursement Arrangement, sometimes called a Health Reimbursement Account, is a fund available to you to use in conjunction with your health insurance plan. The funds are promised by your employer to help you pay for certain out-of-pocket healthcare expenses, such as Deductible or Coinsurance expenses.
The new HDHP plan Optima Health is offering is connected to a HSA. For employees not eligible for an HSA, a HDHP may also be paired with a Health Reimbursement Arrangement, or HRA. Annuitants are automatically enrolled into HRA; however, if you are a non-Annuitant, you must call Member Services to make us aware of your ineligibility for an HSA.
In 2023, for each month you are eligible for a premium pass through, we will contribute to your HRA $75.00 per month for a Self Only enrollment or $150.00 per month for a Self Plus One or a Self and Family enrollment. Unlike the HSA, you cannot contribute additional funds to your HRA. Any unused funds in the HRA at the end of the calendar year are forfeited.