Health Savings Account (HSA)- Companion to CDHP Enrollment Only
An HSA is like a 401(k) for healthcare, yet the HSA tax benefits are far greater. It is a tax-favored, interest-bearing account that active State employees can use to pay for qualified medical expenses, now, or in the future. Active State employees who qualify (see Qualifying for an HSA below), can save or invest the account funds. Paired with the Consumer Driven Health Plan (CDHP), an HSA is a powerful financial tool that gives you more control of your healthcare decisions. An HSA oﬀers triple tax saving:
Pre-tax or tax-deductible contributions
Tax-free interest or investment earnings
Tax-free distributions, when used for qualified medical expenses
The State will contribute a third of the deductible to an active State employees' HSA. You may also contribute an additional $3,050 for an individual; or $6,100 for family, to your HSA through pre¬tax payroll deductions or post-¬tax direct payment.
Plan participants enrolled in any of the State health plans have prescription drug coverage included in their health plan benefits. Prescription benefits are administered by the health plan's prescription benefit manager (PBM).