Why Consider a High Deductible Health Plan (HDHP)?
A High Deductible Health Plan (HDHP) is a popular choice because they have lower premiums (what you pay for your health plan) and a tax-advantage health savings account (HSA).
The deductibles are high but the premiums are lower than similar health insurance plans that have a lower deductible. If you're generally healthy and don't have medical expenses beyond annual physicals and preventive exams, a HDHP could save you several hundred dollars or more a year!
Interested in 3x the tax advantage?
Colonial Group's new HSA, available only if you enroll in the HDHP plan, has a triple tax advantage: the money is pre-tax when it goes in the account, it grows tax-free, and you pay no taxes when you use the money for qualified healthcare expense
All withdrawals from your HSA are generally 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 even if you leave the company or retire. After age 65, you can withdraw funds for any reason without a tax penalty - you pay ordinary income tax only if the withdrawal isn't for eligible health care expenses.
Note: you won't pay federal taxes on HSA contributions. However, you may pay state taxes depending on your residence. Contact your tax advisor to learn more.
HSA Contribution Limits & Contributions
Employees must be enrolled in the HSA account offered by Colonial Group to receive the employer contribution. New hires will receive a pro-rated upfront contribution and additional pro-rated matches throughout the year.
Take Control of Your Healthcare Costs
With a HDHP, you pay a larger portion of your healthcare expenses to achieve the benefits of discounted premiums and costs. Thus, it can encourage you to be more cost-conscious and adopt a proactive approach to making informed decisions on your healthcare. This way, you can shop around for the best prices on medical procedures or medications and make the most of the tax-advantage HSA that comes with the HDHP Colonial Group offers.
Offers Flexibility with Lower Healthcare Needs
HDHPs are a great option for individuals and families with lower healthcare needs that desire flexibility. Colonial Group's HDHP offers lower premiums, enabling savings on insurance costs while still providing coverage for unforeseen medical expenses.
Tax-Advantage Savings Account
When enrolled in a HDHP, you can take advantage of a tax-free account - Health Savings Account (HSA). Any contributions made to the account (by either Colonial Group and/or you) are tax-deductible and the funds can grow tax free. Withdrawing funds tax-free is also possible if used for qualified medical expenses.
Using an HSA can reduce taxable income and save money on healthcare expenses. By taking advantage of this option, individuals can effectively manage their healthcare expenses - such as out-of-pocket costs, copayments and coinsurance, with ease and save money in the process.
Free Money
Colonial Group contributes free money directly to your HSA! You may use these funds to pay for qualified medical, dental and vision expenses throughout the year or utilize the funds in case of an emergency. At the same time, you may save this money in case you don't need it for the future. Funds roll over from year to year! You must actively contribute to receive the employer contribution from Colonial Group.
When a HDHP makes sense:
1
You're healthy and rarely get sick or injured.
2
You have no existing medical conditions.
3
When you can handle high out-of-pocket costs.
4
You want to be eligible for the tax advantages of an HSA.
5
A great benefit to pair with a supplemental plan like Accident, Critical Illness or Hospital Indemnity.
