High Deductible Plans

A High Deductible Health Plan (HDHP) is medical coverage meeting certain regulatory specifications and requirements. Certain benefits are required to be paid by the plan in order to qualify as an HDHP, for example, a preventative care benefit.

With an HDHP, an employer has the option of adding a Health Savings Account (HSA), which is an employee or individual owned portable trust account used to pay for qualified medical expenses on a non-taxable basis. HSAs can be set up through a financial institution, such as a bank or credit union.

Major advantages of an HSA include:

• Tax Deductible Contributions – Must meet IRS requirements.
• Tax-free distributions for qualified medical expenses.
• Balances roll over from year-to-year and continue to grow tax deferred. No “use it or lose it” rule, as exists with “Flex” Health Reimbursement Plans.
• The employee controls the account, even deposits made by employer. There is no vesting schedule.
• Allows participants to financially benefit from making good choices and providing encouragement to live a healthier lifestyle.

To obtain a quote, contact us or call 406.248.6178.