Understanding Consumer Directed Health Plans (CDHP) with Health Savings Accounts (HSA)
If you are considering choosing a CDHP for 2022, here are a few things to know:
- CDHPs have low premiums, offset by a higher deductible and out-of-pocket max. These plans are paired with a HSA, into which WSU will contribute $58.34/individual or $116.67/family each month. You may make your own pre-tax contributions to the HSA through payroll deduction.
- The HSA contribution limit for 2022 is $3650/individual and $7300/family. This includes employer and employee contributions, and the $125 SmartHealth Incentive if earned. Employees 55 or older may contribute an additional $1000/yr.
- HSA funds can be used to pay for qualified medical expenses, and carry forward year-to-year. They remain your funds even if you switch plans, leave WSU, or retire.
- To enroll in a CDHP, you must meet the IRS eligibility requirements. If nearing age 65, consider speaking with a tax advisor. Individuals enrolled in Medicare cannot contribute to a HSA.
- If you have a Medical FSA for 2021 and are switching to a CDHP for 2022, your FSA account must be at $0 by Dec. 31.
- During 2022 Open Enrollment, CDHP/HSA enrollees can also enroll in a Limited FSA, which covers certain vision and dental expenses only.
More information can be found on the HSA info page.