Understanding Consumer Directed Health Plans (CDHP) with Health Savings Accounts (HSA)

Join us for a presentation on Consumer Directed Health Plans (CDHP) with Health Savings Accounts (HSA):

• October 23, at 10:00am, via Zoom Meeting ID: 812 058 2016:

CDHP medical plans have lower premiums, offset by a higher deductible and out-of-pocket maximum. They are paired with a Health Savings Account (HSA).

WSU contributes monthly: $58.34/individual |$116.67/family. You may make additional pre-tax contributions.

• The HSA maximum contribution limit in 2027 is $4,500/employee or $9,000/families. This includes employer and employee contributions including the $125 SmartHealth incentive, if earned
• Employees who are or will be age 55 in 2027 may contribute an additional $1000/yr.
• HSA funds can be used for IRS-qualified medical, Rx, dental, vision, hearing and other IRS defined expenses
• Funds carry forward year-to-year
• Your contribution from pay reduces your taxable federal, state, and social security tax
• Contributions made directly are claimed on taxes to reduce federal/state tax liability.
• HSA contributions, interest, and withdrawals for healthcare are tax-free
• IRS rules restrict eligibility for HSAs. If you are or will be 65+ in 2027, speak with a tax advisor to avoid penalties
• A Limited FSA (LFSA) for medical and dental only is available in addition to an HSA, or instead of an HSA if you cannot participate

Visit HSA info or HRS Open Enrollment for more information.

Contact HRS Benefits at 509-335-4589 or [email protected] with questions.