Making the Switch to a High Deductible Health Plan
Transitioning to a qualified High Deductible Health Plan (HDHP) with a Health Savings Account (HSA) may seem overwhelming. Here are some things to consider as you make the switch:
Reevaluate Your Current Health Plans
Determine your organization’s goals for moving to an HDHP. Do you want to limit options to reduce employee confusion? Do you want to save money?
Select a Qualified HDHP
Just because a plan has a higher deductible doesn’t mean the plan can be paired with an HSA. A true qualified HDHP must meet regulatory criteria, such as specific out-of-pocket limits and deductible minimums.
2021 Requirements:
|
Individual coverage |
$1,400 minimum deductible |
$7,000 maximum out-of-pocket |
|
Family coverage |
$2,800 minimum deductible |
$14,000 maximum out-of-pocket |
2022 Requirements:
|
Individual coverage |
$1,400 minimum deductible |
$7,050 maximum out-of-pocket |
|
Family coverage |
$2,800 minimum deductible |
$14,100 maximum out-of-pocket |
Pick an HSA Provider
Using a medical carrier as your HSA provider may seem easier, but the short-term convenience could have long-term consequences for your employees. If you change medical carriers in the future, your employees may have to manage multiple accounts. By selecting a third-party HSA provider, regardless of your medical carrier, your employees will have one HSA account to manage their funds.
Choose Supplemental Benefits
These products help alleviate higher deductibles and out-of-pocket medical costs by paying benefits directly to your employees. But not all benefits are created equal. American Fidelity can help you determine which benefits are HSA-compatible.
Create a Communication Plan
Employees are more likely to be positive about HDHPs when they know more about them.1 We can help your employees understand why you are switching to a high deductible health plan and what tools you provide to assist in the transition. This includes understanding how an HSA and supplemental benefits can help manage costs.
Let Us Help with Education
Our account management team can work with you to develop a customized communication strategy to help ease the transition to your new plan. We can assist before, during, and after the transition to help alleviate confusion and boost participation and future retention. We do this by providing:
- Educational videos
- Custom benefits sites
- Calculators and other tools
- Group meetings
Watch an example of how we can help educate your employees.