BENEFIT DECISION TIPS AND TOOLS FOR HEALTH INSURANCE
HSA - Hidden Gems with HDHP Plans
Participants who choose a qualified HealthFlex high-deductible health plan (HDHP) have the option to contribute to a tax-advantaged health savings account (HSA). Personal HSA contributions can be deducted from your compensation on a pre-tax basis or may be contributed on an after-tax basis and mailed directly to the issuing bank [Bank of New York Mellon (BNY Mellon)] for HealthFlex HDHP plans. HSA funds can be used to reimburse yourself for eligible health-related expenses.
An HSA can be used to pay for eligible health-related expenses that are not reimbursed through the health plan.
Common eligible expenses include the following:
- Annual deductibles,
- Out-of-pocket expenses for medical and prescription drug services and eligible supplies,
Other eligible expenses related to
- Behavioral health care.
For some people, the HSA is an attractive offering because they can save pre-tax money for future medical expenses, including retiree health costs, while still being able to access at any time for eligible expenses.
HSAs can be a great tool for long-term, tax-advantaged health savings. However, they have unique rules, restrictions and tax implications. If you are considering enrolling in a HealthFlex HDHP with HSA, please read this document carefully before electing your plan. You may also want to consult with a tax adviser.