Pub. 9 2019-2020 Issue 4

14 O V E R A C E N T U R Y : B U I L D I N G B E T T E R B A N K S — H E L P I N G C O L O R A D A N S R E A L I Z E D R E A M S www.coloradobankers.org E mployers increasingly are turning to high deductible health plans (HDHPs) for their employee medical coverage. The stated objective is to give employees greater control over their own health benefits and motivate them to be cost-conscious health care consumers while also lowering their premiums. HDHPs that meet certain qualifications allow employees to save with a health savings account (HSA) on a pretax basis to cover their eligible out- of-pocket medical expenses. With open enrollment just around the corner, you may be contacted by employers with HSA questions. Here are five important questions they may be asking. What type of health insurance plans are compatible with an HSA? A health plan is considered an HSA- compatible, or HSA-eligible, HDHP if it satisfies the following deductible and out-of-pocket expense requirements. These amounts are subject to annual cost-of-living adjustments (COLAs). If the planuses a network of providers, plan provisions specific to out-of-network services are not taken into account for satisfying the deductible and expense limitations that are required for a plan to be considered HSA-compatible. Instead, only deductibles and out-of-pocket expenses for services within the network should be considered to determine whether the HDHP is HSA-compatible. 5 Important HSA Questions Employers Ask Before Choosing an HSA-Compatible HDHP BY CHRISTLE JOHNSON, QKA, CIP