Employees: Consumer directed health plan (CDHP) with a health savings account (HSA)
A CDHP is a high-deductible health plan, with a health savings account (HSA). CDHPs offer lower premiums, a higher medical deductible, and a higher medical-out-of-pocket limit than most traditional health plans.
The HSA is a tax-exempt account anyone can deposit funds into on your behalf. You can use your HSA to pay for IRS qualified out-of-pocket expenses (like deductibles, copays, and coinsurance), including some expenses and services that your health plan may not cover.
You must meet certain eligibility requirements to enroll in a CDHP/HSA. If you are not eligible for a CDHP/HSA and enroll, you may be liable for tax penalties.
You are not eligible to enroll in a CDHP with an HSA if you are enrolled in:
- Medicare Part A or Part B or Medicaid
- Another comprehensive medical plan
- VEBA, unless you convert it to limited HRA coverage
- Medical Flexible Spending Arrangement (FSA) or Health Reimbursement Arrangement (HRA) Note: You may enroll in a Limited Purpose FSA
Other exclusions apply. Check IRS Publication 969 – Health Savings Accounts and Other Tax-Favored Health Plans at www.irs.gov, contact your tax advisor, or call call HealthEquity toll-free at 1-877-873-8823 (for Kaiser members) or 1-844-351-6853 (for UMP members) to verify whether you qualify. See the Complete HSA Guidebook for full details.
When you enroll in a CDHP, your employer contributes $700.08 for you, or $1,400.04 for you and at least one other family member in your HSA.
Maximum contributions for the HSA for 2022 are $3,650 for a single subscriber and $7,300 for a family. Employees ages 55 and up can contribute up to $1,000 more per year.