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HDHP-HSA: Medical coverage plus tax-free savings
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The HDHP-HSA combines medical coverage with a savings opportunity to help you take more control of your health care dollars. The two parts are described in detail below and in this graphic, How your HDHP and HSA work together.

  1. The Blue Cross Blue Shield High-Deductible Health Plan (HDHP): This is the medical insurance part. After you fulfill the deductible ($1,500 for employee-only coverage; $3,000 for other levels of coverage), your coinsurance kicks in. TI pays 90 percent of in-network doctor expenses and 80 percent of in-network hospital expenses.

    Other important features:
    • Pharmacy expenses apply to the deductible before coinsurance is applied.
    • Coinsurance applies to a combined annual out-of-pocket maximum for medical, pharmacy and behavioral health care.
    • IMPORTANT DIFFERENCE: The deductible for family coverage applies to all covered family members (there is no individual deductible).
  1. The Fidelity Health Savings Account (HSA): Once you enroll in the HDHP, you may open your HSA. Here are the features of this individual investment account:
    • TI puts money in the account every year — $750 for employee-only coverage, or $1,250 for other coverage levels. (The HSA contribution is prorated based on the number of months during the year a person is covered by an HSA-eligible plan as of the first day of the month.)
    • You can add money with before-tax deductions from your paycheck.
    • You can use your HSA money to pay for the HDHP deductible or you can save it for future eligible health expenses.
    • When you set up your HSA account, you can choose a debit card and/or checkbook to access funds from your account — to pay the provider directly or reimburse yourself.
    • You keep all the savings in the account, even if you move to another employer, and the earnings are not taxable.
    • As long as you use the funds to pay for qualified health care expenses, you don't pay taxes or penalties on that money.
    • Once you have sufficient funds in your account, you can invest your savings in a broad range of options, including mutual funds and individual stocks and bonds. Until then, the funds are invested in an FDIC-insured, interest-bearing core account through Fidelity HSA.
    • Fidelity BillPay®: You can make payments out of your HSA online. Fidelity BillPay will let you schedule and submit payment for qualified medical expenses.
HSA details
Since an HSA is a tax-advantaged account, certain restrictions apply, such as:
  • You can't have other medical coverage that is not a qualified HDHP.
  • You can't be claimed as a dependent on someone else's tax return.
  • You and your spouse can't use a health care spending account. (But you can use the dental and vision spending account.)
  • There are maximum annual contribution limits (see the box).
  • You need to keep receipts to show your HSA money is spent on qualified health care expenses.
Important Numbers
Individual Coverage
Family Coverage
HDHP Deductibles $1,500 $3,000
HDHP Annual Out-of-Pocket Maximums $3,000 $6,000

HSA Contribution Maximums, 2016 (includes TI contribution)

$3,350 $6,750

HSA Contribution Maximums, 2015 (includes TI contribution)

$3,350 $6,650
Plus $1,000 catch-up contribution if age 55 or older by year-end

For more details about the HDHP-HSA, see the 2016 Health and Insurance Benefits Guide, available on this website under "Benefits Guides."

New for 2016
•   Better access to immunizations: In the HDHP and PPO, you'll now have better access to preventive care such as flu shots. Go to any
network pharmacy (CVS, Walgreens, etc.) to receive
covered immunizations (subject to availability).
•  Increase in the IRS contribution maximum. (see box below)

How it works
•  Do the Math video (3.5 mins.)
•   HDHP-HSA Made Simple video (7 mins.)
•  Fidelity HSA presentation
•  Fidelity HSA Guide

How is an HSA different
from an FSA?
A flexible spending account (FSA), such as TI's Health Care Spending Account, is subject to the use-it-or-lose-it rule in which any unused funds at the end of a year are forfeited.

An HSA is not subject to the use-it-or-lose-it rule, so funds remain in your account from year to year. You may opt to save all or a portion of the money in your HSA to pay for future medical expenses.

If you open an HSA, you can't use the Health Care Spending Account, but you can use the Dental and Vision Spending Account (if you enroll).
How the Health Savings Account Works


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