Consumer Directed Health Plan (CDHP) & Health Savings Account (HSA)
The University of Utah’s Consumer Directed Health Plan option (CDHP) may be combined with a Health Savings Account (HSA).
To be an eligible individual and qualify for the tax benefits of an HSA, you must be covered under a qualified high deductible health plan as your only health coverage (except as otherwise permitted under IRS regulations), not be enrolled in Medicare, and not be claimed as a dependent on someone else’s tax return. The University’s CDHP plan meets the IRS requirements. You may enroll in the University’s CDHP without enrolling in the HSA. However, if you wish to enroll in an HSA through the University, you must also enroll in the CDHP.
Links to Additional Information
- Choosing Between Health Savings Account (HSA) and a Flexible Spending Account (FSA)
- HSA Tools and Calculators
- Health Equity videos, documents, tools and forms
HIGHLIGHTS OF CONSUMER DIRECTED HEALTH PLANS (CDHPs) & HEALTH SAVINGS ACCOUNTS (HSAs):
- The University’s CDHP includes providers in the Preferred ValueCare network.
- The CDHP has a maximum out-of-pocket limit. This means that if the amount you pay for eligible medical costs reaches the limit during a plan year, the remaining eligible expenses are fully covered by the plan without additional payments from you for the remainder of that plan year. Visit the Summary Plan Comparison for plan design details.
- With the CDHP, you may consider placing what you save on premiums into an HSA.
- You can use an HSA to pay for qualified medical expenses on a pre-tax basis, or save it and earn interest. The amount in your HSA may also be invested once it reaches a minimum balance of $2,000.
- Withdrawals from an HSA are never taxed or penalized when used for qualified health care expenses.
- The money you defer to an HSA is yours. If you change jobs or retire, you keep your account and all remaining balances.
- View the HSA election form for HSA minimum and maximum contribution limits.
ELIGIBLE EXPENSES:
To be eligible, expenses must not be paid, reimbursed, or reimbursable from any other source. Expenses must be incurred during the Plan Year while you are participating in the Plan (expenses are treated as incurred when you are provided with the services and not when you are billed or pay for the services).
| Eligible Medical Expenses for the HSA | |
| Generally, eligible medical expenses are those incurred for the diagnosis, cure, mitigation, treatment, or prevention of disease or to affect any structure or function of the body. | |
Some examples of eligible medical expenses for the HSA include:
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Eligible medical expenses for the HSA do not include:
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CHANGES TO ELECTIONS
An election to participate in the Consumer Directed Health Plan (CDHP) is irrevocable during the plan year. You may cancel coverage or add or drop dependents if you experience a qualifying status change event. Your Health Savings Account (HSA) election will remain in effect until you change or cancel it in writing. You may increase, decrease, or stop future HSA contributions by submitting an updated form prior to the end of the pay period.
HOW TO ENROLL
If you are an employee in a benefit-eligible position, you may enroll in the Consumer Directed Health Plan and a Health Savings Account by submitting a completed enrollment form to the Benefits Department during your Initial Enrollment Period (first 90 days after you are hired into a benefit-eligible position) or during Open Enrollment each April. Elections made during Open Enrollment are effective for the following Plan Year beginning July 1. Contact the Benefits Department for additional information.