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Do not rely solely on this fact sheet.
Always refer to the individual plan brochures before making your final decision.
FastFacts
High Deductible Health Plans
OVERVIEW OF HIGH DEDUCTIBLE HEALTH PLANS
A High Deductible Health Plan (HDHP) is a health plan product that combines a Health Savings
Account (HSA) or a Health Reimbursement Arrangement (HRA), traditional medical coverage and a
tax-advantaged way to help save for future medical expenses while providing flexibility and
discretion over how you use your health care dollars today.
HDHPs have higher annual deductibles and out-of-pocket maximum limits than other types of
Federal Employees Health Benefits (FEHB) Program plans. With an HDHP, the annual deductible
must be met before plan benefits are paid for services other than in-network preventive care services,
which are fully covered..
HDHPs also protect you against catastrophic out-of-pocket expenses for covered services. Once your
annual out-of-pocket expenses for covered services from in-network providers, including
deductibles, copayments and coinsurance, reaches the pre-determined catastrophic limit, the plan
pays 100% of the allowable amount for the remainder of the calendar year. It is important to
remember once the catastrophic maximum is met, you will not incur additional out-of-pocket medical
expenses for in-network care, including doctor visit co-payments and prescriptions which are
excluded from some traditional plan’s catastrophic limits.
HEALTH SAVINGS ACCOUNTS
A Health Savings Account allows individuals to pay for current health expenses and save for future
qualified medical expenses on a pre-tax basis. Funds deposited into an HSA are not taxed, the
balance in the HSA and interest grows tax free, and that amount is available on a tax free basis to pay
your qualified medical expenses, including your copays, coinsurance and deductible. When you
enroll in an HDHP, the health plan determines whether you are eligible for a Health Savings Account
(HSA) or a Health Reimbursement Arrangement (HRA) based on the information you provide.
Who is eligible for an HSA?
You are eligible for an HSA if you are:
• Enrolled in an HDHP and not covered by another health plan (including a spouse’s health
plan, but not including specific injury insurance and accident, disability, dental care, vision
care, or long-term care coverage)
• Not enrolled in Medicare
• Not in receipt of VA or Indian Health Service (IHS) medical benefits within the last three
months
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Members of Congress and designated staff enrolled in a DC SHOP plan should refer to DC SHOP rules and their plan’s brochure for HSA information.