Frequently asked Questions

What is an Health Savings Account (HSA)?

A special account owned by an individual used to pay for current and future medical expenses. HSAs are used in conjunction with a High Deductible Health Plan (HDHP). One must be on an active High Deductible Health Plan in order to have an HSA. People 65+ cannot contribute to a HSA, they can only draw from the account for health related expenses.  

 How much can I contribute to my HSA?
For 2019, the maximum annual HSA contribution for an eligible individual with self-only coverage is $3,500. For family coverage, the maximum annual HSA contribution is $7,000. Catch up contribution for individual who are 55 or older is increased by statute to $1,000 for 2019 and all years going forward. 

Maximum Amount for people 55+ who have self only coverage is $4,500 and for Family coverage is $8,000.

 What is a High Deductible Health Plan (HDHP)?
An HDHP is an inexpensive health insurance plan that covers medical expenses after the deductible is met (except for preventive care). For 2019, the minimum deductible for HDHPs is $1,350 for self-only coverage and $2,700 for family coverage.

What is a Health Reimbursement Arrangement (HRA)? 

An HRA is an account set up and funded by the employer to reimburse employees for medical expenses not covered under the employer’s group medical coverage.

What is a Flexible Spending Account (FSA)? 

An FSA is a tax-advantaged financial account that can be set up through an employer’s cafeteria plan. It allows an employee to set aside a portion of their earnings to pay for qualified expenses as established in the cafeteria plan, most often used for medical expenses. An employee would elect how much they would like to contribute to the account and if they do not use that amount then they will lose the amount at the end of the year.

What’s the difference between an HMO, PPO, and EPO?

*An HMO is a Health Maintenance Organization. It is a plan that requires the insured to use only the health care providers that participate in the network. Restricting participants to only the regional network. 

*An EPO, or Exclusive Provider Organization, is like an HMO in that it requires its members to see only in-network health care providers, but an EPO has a national in-network provider listing. The EPO focuses more on preventative care and is generally less expensive than an HMO.
*A PPO, or Preferred Provider Organization, is a health system organized by an insurance company to provide both in-network and out-of-network coverage. Greatest option of doctors to choose from. 

 Can I change my Health Plan in the middle of the plan year?
Yes, an employer group may change health plans anytime throughout the year. All the company needs to do is advise the carrier 30 day in advance of cancelling the policy.  

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