Health Savings Accounts
A Revolutionary Concept in Financing
CDPHP Universal Benefits, Inc. (CDPHP UBI) offers an HSA-compatible High-Deductible PPO plan with more affordable premiums.
Definition
A Health Savings Account (HSA) is a personal, interest-bearing account that offers a tax-free incentive to save for future medical expenses. By making use of a tax-advantaged HSA, an employee can plan for needed health care and use pre-tax dollars to pay for it. Also see Health Reimbursement Arrangements.
Eligibility
To have an HSA, an employee must be covered by a qualified high-deductible health plan. Additionally, the employee cannot:
- Be covered by additional health insurance (except for disability, dental care, vision care, or long-term care insurance).
- Be eligible for Medicare.
- Be claimed as a dependent on someone else's tax return.
Contributions
Contributions to an HSA may be made by an employer, employee and family members.
Advantages
The HSA is individually owned and controlled. The employee decides how much to contribute, how much to spend, and how much to save for future use. The account is completely portable. The employee still owns the account even if they leave their job. HSA funds can earn interest tax-free, and expenditures are never taxed as long as they are used for qualified medical expenses for the employee or dependent. Unused contributions accumulate and can be banked for future health care needs.
Spending
HSA funds remain tax-free as long as they are used for qualified medical expenses such as:
- Doctor visits.
- Prescription drugs.
- Over-the-counter drugs.
- Dental care.
- Medical supplies.
To see a full list of qualified expenses, visit the IRS Web site
Deposits
Only certain banking institutions are qualified to deliver this service. CDPHP UBI has partnered with an experienced, reputable financial company that is available to help you. HSA Bank™, a division of Webster Bank, N.A., is the national leader in health savings accounts.
For More Information
Contact CDPHP at (518) 641-5000 or 1-800-993-7299.