GRAY – HDHP with an HSA

This medical plan option rewards you for taking an active role as a health care consumer and making smart decisions about your health care spending.

High Deductible Health Plan (HDHP)

A plan with a higher deductible than a traditional insurance plan. The weekly premium is lower, but you pay more health care costs yourself before the company starts to pay its share (your deductible). A high deductible plan (HDHP) can be combined with a health savings account (HSA), allowing you to pay for certain medical expenses with money free from federal taxes.

Health Savings Account (HSA)

A type of savings account that lets you set aside money on a pre-tax basis to pay for qualified medical expenses. By using untaxed dollars in a Health Savings Account (HSA) to pay for deductibles, copayments, coinsurance, and some other expenses, you may be able to lower your overall health care costs.

Advantages of an HDHP with an HSA

Lower paycheck premiums

Your per-paycheck premiums are lower giving you the opportunity to contribute the cost savings to a tax-free HSA. You pay for your initial expenses until you meet your annual deductible, and then you pay a percentage of any further costs until you reach the annual out-of-pocket maximum.

Tax-advantaged savings account

To help you pay your deductible and other out-of-pocket costs, you can open an HSA and make before-tax contributions directly from your paycheck. Lithko will also contribute a dollar-for-dollar match, up to $500 for coworker only coverage or $1,000 for family coverage, to your HSA to help cover your annual deductible.

All withdrawals from your HSA are tax-free, as long as you use the money to pay for eligible health care expenses. In addition, all the money in the account is yours and will never be forfeited. It rolls over from year to year, and you can take it with you if you leave the Company or retire.