CDHPs have low monthly premiums, offset by a higher deductible and out-of-pocket max. These plans are automatically paired with a HSA, into which WSU contributes $58.34/individual or $116.67/family monthly. You may make your own HSA contributions pre‑tax through payroll deduction.
- The HSA max contribution limit for 2023 is $3850/individuals or $7750/families. This includes both employer and employee contributions, as well as the $125 SmartHealth Incentive if earned. Employees ages 55 or older may contribute up to an additional $1000/yr.
- HSA funds can be used on IRS‑qualified out-of-pocket medical expenses, and carry forward year-to-year. Funds remain yours even if you dis‑enroll from a CDHP or leave WSU.
- Contributions made through payroll deduction lower your taxable income. Contributions made directly to HealthEquity can be reported on your federal income tax return to reduce federal and state income taxes, but not FICA taxes.
- HSA contributions are tax‑free, the earnings are tax‑free, and the funds remain tax‑free if utilized for eligible health expenses.
- CDHP enrollees must meet IRS eligibility requirements. If near or over age 65, consider speaking with a tax advisor. Medicare enrollees may not also contribute to a HSA, and if they do there are tax implications.
- During OE, CDHP/HSA enrollees may also enroll in a Limited FSA to cover eligible vision and dental expenses in 2023.
Visit HSA info or HRS Open Enrollment for more information.
