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?
To help you pay for your medical services, both HDHP plans have a corresponding Health Savings Account (HSA) through UMB. You are responsible for 100% of all covered services until you meet the annual deductible. However, your HSA will help you cover your out-of-pocket costs. Once you meet your deductible, the medical plan will generally pay 80% for in-network covered services (50% for out-of-network) until you reach the annual out-of-pocket maximum, at which point the plan will pay 100% of covered services for the remainder of the calendar year.
Set aside tax free dollars in your HSA to use for medical, dental, and vision needs up to the IRS maximum limit (below). Funds roll over from year to year and can be invested to pay for future medical care. You may set aside up to the IRS maximum per year. Remember, unused dollars roll over, year over year!
IRS Maximum Limits for Health Saving Accounts (HSA)
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 Welch Packaging offers.
Offers Flexibility with Lower Healthcare Needs
HDHPs are a great option for individuals and families with lower healthcare needs that desire flexibility. Welch's HDHP's 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 Welch 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
Welch 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 Welch Packaging.
Learn more about Welch's contributions here.
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.
