CDHPs have lower monthly premiums, offset by a higher deductible and out-of-pocket max. These plans are paired with a HSA, which WSU contributes $58.34/for EE only or $116.67/family monthly. You may make additional HSA contributions pre-tax through payroll deduction.
- The HSA max contribution limit for 2025 is $4,300/EE only or $8,550/families. This includes both ER and EE contributions, as well as the $125 SmartHealth Incentive if earned.
- EEs ages 55 or older may contribute an additional $1000/year.
- 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 federal and FICA taxable income. Contributions made directly to HealthEquity can be reported on your income tax return to reduce federal/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 2025.
- Visit HSA site or HRS Open Enrollment for more information.
HRS Benefits at 509-335-4521, hrs.benefits@wsu.edu.
