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High Deductible Health Plan Benefits

Lively · July 25, 2017 · 3 min read

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You might know what a high deductible health plan (HDHP) is, if not, here is an in-depth overview. Here is how an HDHP benefits your health and how to make it work best for you.

High deductible health plans have increased 20% in the last two years and now represent 29% of all employer sponsored health plans. Why are they becoming more and more popular? HDHPs are a great way for employers to decrease costs with ensuring continuing coverage for their employees. They are also a great way for individuals to find affordable plans in state healthcare exchanges. What are the other key benefits driving this growth and how do high deductible health plans benefit you?

High Deductible Health Plan Benefits

  • Low Premiums – The best part of high deductible health plans are the lower monthly premiums (when compared to traditional PPO, HMO or high coverage options). This allows you to ensure proper coverage for high healthcare expenses and limits your financial exposure. Limit your short-term financial requirements with high deductible health plan insurance.

  • Flexibility – If you have ever used an HMO healthcare plan, you know the frustration of having to drive 30 min out of the way to see your primary care physician. While HDHPs still have in and out of network designations, the overall offering likely has more care and provider options than some traditional healthcare plans.

  • Health Savings – qualifying HDHPs are the only eligible healthcare plan to be used with health savings account. HSAs are the best option to save for health costs for this year and years to come. Retirement healthcare costs are expected to exceed $250,000 for individuals and $350,000 for couples. This is on top of expected Medicare coverage. In addition to saving health money for retirement, after 65 years of age, you can use your HSA money for non-health related expenses (like anything), with no penalty – you just pay ordinary income taxes. It’s just another interest-bearing account similar to your 401k or IRA. What a wonderful perk.

Healthcare costs are on the rise and high deductible health plans provide a great compromise that limits short-term financial commitments while creating more flexibility. Coupled with an HSA, an HDHP provides long-term health savings.

If you need more help with health account decisions, check out our blog. We will make you a healthcare benefits expert in no time, without any extra work or effort on your end.

Lively

Lively

Lively is the modern HSA experience built for—and by—those seeking stability in the ever-shifting healthcare landscape. By harnessing modern innovation and deep industry expertise, Lively is committed to bridging today’s savings with tomorrow’s unknowns. Unlike traditional institutions hindered by bureaucracy, Lively’s commitment extends beyond initial set up to providing dedicated, ongoing support and education for every step. So each HSA can reach its maximum potential with minimal headache.

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Benefits

2024 and 2025 HSA Maximum Contribution Limits

Lively · May 9, 2024 · 3 min read

On May 9, 2024 the Internal Revenue Service announced the HSA contribution limits for 2025. For 2025 HSA-eligible account holders are allowed to contribute: $4,300 for individual coverage and $8,500 for family coverage. If you are 55 years or older, you’re still eligible to contribute an extra $1,000 catch-up contribution.

comparing hsa versus fsa

Benefits

What is the Difference Between a Flexible Spending Account and a Health Savings Account?

Lauren Hargrave · February 9, 2024 · 12 min read

A Health Savings Account (HSA) and Healthcare Flexible Spending Account (FSA) provide up to 30% savings on out-of-pocket healthcare expenses. That’s good news. Except you can’t contribute to an HSA and Healthcare FSA at the same time. So what if your employer offers both benefits? How do you choose which account type is best for you? Let’s explore the advantages of each to help you decide which wins in HSA vs FSA.

Benefits of HSA employer matching

Health Savings Accounts

Ways Health Savings Account Matching Benefits Employers

Lauren Hargrave · October 13, 2023 · 7 min read

Employers need employees to adopt and engage with their benefits and one way to encourage employees to adopt and contribute to (i.e. engage with) an HSA, is for employers to match employees’ contributions.

Disclaimer: the content presented in this article are for informational purposes only, and is not, and must not be considered tax, investment, legal, accounting or financial planning advice, nor a recommendation as to a specific course of action. Investors should consult all available information, including fund prospectuses, and consult with appropriate tax, investment, accounting, legal, and accounting professionals, as appropriate, before making any investment or utilizing any financial planning strategy.

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