Winning with a Consumer Directed Health Plan + Health Savings Account
6 Essential Strategies
Explore More
6 Essential Strategies
Explore MoreAn HSA is completely tax free — even better than a 401(k) or Roth IRA, which both tax you somewhere along the line. Your HSA money goes in tax free, builds earnings tax free, and comes out tax free when spent on eligible expenses.
Get a triple tax advantage with the CDHPs and HSA.
Low-premium, high-deductible coverage
The CDHPs cover preventive care, such as checkups and vaccines, at 100% as long as you stay in-network, so you pay nothing.
For non-preventive care — like treatment for an illness — you’ll want to plan ahead so you’re prepared to cover your costs until the plan’s coverage kicks in. A great way to do this is to put the money you’re saving on premiums into your HSA for future use.
Tax-free savings account that’s yours forever
An HSA is the smartest way to pay for your health costs, and all the money is always yours to keep (there’s no use-it-or-lose-it rule as with Flexible Spending Accounts). Use your HSA to stash away tax-free money you can spend on eligible medical, prescription, dental, and vision expenses anytime, even in retirement.
You even get FREE money from NextGen to grow your HSA faster! In 2020, you’ll receive $500 if you enroll in individual medical plan coverage, or $1,000 if you cover dependents.
Stay healthy Spend wisely Save for the future!
No other type of medical plan helps you stay healthy, spend wisely, and build up tax-free savings to pay for future medical expenses.
See a full list of fully covered preventive care services for adults and children.
You can stay healthier — and lower your medical bills — by keeping up with your preventive care. It’s FREE as long as you stay in-network, so there’s no excuse to skip it!
What can you spend HSA money on? See a list of eligible expenses.
Your HSA will always fit your needs because you can change your contributions at any time. You can save just enough to cover your everyday health expenses, or use it to save up for a big expense like surgery or dental work.
In retirement, you can spend HSA money on eligible health expenses, Medicare premiums, nursing home care, long-term care and much more.
Many HSA users spend as they go, allowing what’s left to roll forward. But you can also leave your HSA money untouched so it can build up for the future — not a bad idea, since an average couple could spend $350,000* on health care in retirement.
Source: EBRI.org. Assumes a 5% rate of return, the maximum contribution each year, and no withdrawals.
*Employee Benefit Research Institute, 2017 data.
Go here to search for accredited urgent care centers near you.
Why overpay for health care and prescriptions? You’ll keep more cash in your HSA if you know how to work the health care system. Take charge of your spending with these money-saving secrets.
when you need medical attention
to save on medical expenses
Keep your receipts! If the IRS audits you about your HSA before age 65, you’ll need to prove the account was used for qualified expenses.
Along with your HSA’s incredible tax benefits come a few rules. Knowing them will help you take full advantage of your account, now and in retirement.
Any time you are enrolled in a qualified high deductible health plan, like a CDHP through NextGen, you may contribute.
You cannot contribute to your HSA once you turn 65.
The same things that are eligible before age 65, plus:
You pay ordinary income tax plus a 20% penalty on the amount withdrawn.
No penalty — you’ll just pay ordinary income tax on the amount withdrawn.
