Employees have the option to pay medical expenses on a pre-tax or tax deductible basis if they opt for high-deductible health plans (HDHPs) during this year’s open season enrollment period.
HDHPs offer lower premiums and greater flexibility and discretion on how to use health care dollars. The plans also offer possible tax savings.
HDHPs combine a health savings account (HSA) or health reimbursement arrangement (HRA) with traditional coverage, such as a health maintenance organization (HMO) or fee-for-service plan.
These types of plans also have higher annual deductibles and annual out-of-pocket limits than other Federal Employees Health Benefits (FEHB) plans.
An HDHP automatically deposits a portion of your premium or a credit into your HSA or HRA.
With the exception of preventive care, participants must meet the annual deductible before the plan pays benefits.
Open season — the annual period when employees can make changes to their health coverage — starts Nov. 9.