• how-to-make-the-most-of-your-hdhp

    How to Make the Most of Your High Deductible Health Plan (HDHP)

    Explore the benefits of this low-premium plan option.

    By Rachael Rotella

    Qualified High Deductible Health Plans (HDHPs) are becoming more and more popular amongst employers of all sizes each year. While many are fearful of the thought of a “high deductible,” it is important to understand the opportunities these plans offer.

    Not only do qualified HDHPs offer lower, more affordable premiums – they also give members the opportunity to participate in a Health Savings Account (HSA). An HSA is a great way to save for medical expenses and reduce your taxable income. An HSA is a bank account that can be used to accumulate tax-free funds to pay for qualified health care expenses as defined by the IRS, including medical, dental and vision costs. You can use the funds in your account to pay for costs incurred by any tax dependent – including those costs that your insurance may not cover – or save the money in your account for future medical needs.

    There are also investment opportunities you may take advantage of using accumulated HSA funds. The money you earn from investing is tax-free and can continue to grow for health care expenses in retirement.

    As the owner of the account, you determine how much money you’ll contribute to your HSA up to the annual maximum. Funds remain in your account from year to year, even if you leave the company, retire, or switch health plans. Some employers will even make a contribution into your HSA to help with your transition to an HDHP.

    If your employer has shifted gears and is offering a Qualified HDHP like many other employers today, don’t panic. Take advantage of this opportunity. Take some of the extra funds that you no longer pay towards those expensive copay plan premiums and put them into an HSA.

    An HSA is a great way to invest in your future.


    Rachael Rotella is Senior Benefit Specialist at OneGroup. She can be reached at 315-418-4968 or RRotella@OneGroup.com.