Horizon PPO CDHP HSA
The Horizon PPO CDHP HSA Plan works pairs a high-deductible health plan with a Health Savings Account (HSA) to cover eligible medical expenses.
The Horizon PPO CDHP HSA Plan works has three main components:
- A high-deductible health plan.
- A Health Savings Account (HSA).
- Tools and resources to help members make informed decisions about health care and related spending.
An HSA allows you to pay for current qualified medical expenses and save for future qualified medical expenses on a tax-favored basis. HSAs provide triple-tax advantages: contributions, investment earnings, and qualified distributions-are all exempt from federal income tax, FICA (Social Security and Medicare) tax and state income tax (for most states). Unused HSA dollars roll over from year to year, making HSAs an easy way to save and invest for future qualified medical expenses. You own your HSA and can take it with you when you change medical plans, change jobs, or retire. This means the funds in your account, contributed by you and your employer, are non-forfeitable and portable.
Once the deductible is met, your health care expenses are paid according to the terms of your health plan. Unused HSA funds roll over from year to year and are portable. That means you can access your HSA funds regardless of employer, age, marital status changes, future medical coverage, or state of residence. What's more, your HSA funds are held in a money market fund and accrue tax-free interest.
HSAs were established by the Medicare Modernization Act of 2003 with an effective date of January 1, 2004 and are available to individuals with a qualified, high-deductible health insurance plan. The health insurance plan is paired with a savings account to cover eligible medical expenses not covered by the health insurance plan. You can use your HSA to pay for all qualified medical expenses. It is your money. Not only do your HSA funds accumulate from year to year; your HSA is portable - the funds remain with you even if you change jobs. HSA funds earn interest and may be invested, and the interest and earnings are tax free.
HSA funds can be used for any of the following:
- Save for future medical expenses.
- Help bridge the gap to benefits until they meet the annual health plan deductible.
Both you and your employer can contribute to an HSA. Contributions to HSAs are 100 percent tax deductible. Although HSA contributions must stop when you enroll in Medicare, you can continue to access your HSA balances. Annually, your HSA can be funded up to the lower amount of the deductible or the maximum specified by law.