Why Consider a Consumer Directed Health Plan (CDHP)?
A Consumer Directed Health Plan (CDHP) is a popular choice because they have lower premiums (what you pay for your health plan) and a tax-advantage health savings account (HSA).
The deductibles are high but the premiums are lower than similar health insurance plans that have a lower deductible. If you're generally healthy and don't have medical expenses beyond annual physicals and preventive exams, a CDHP could save you several hundred dollars or more a year!
Interested in 3x the tax advantage?
Dexter's HSA, available only if you enroll in the CDHP $3,500 or CDHP $2,000, has a triple tax advantage: the money is pre-tax when it goes in the account, it grows tax-free, and you pay no taxes when you use the money for qualified healthcare expenses. Even better - Dexter contributes directly to your HSA. Here are a few exciting things you can do with your HSA:
Earn interest and invest: Once your interest-bearing HSA reaches $1,000, you can start an investment account, which offers a variety of no-load funds similar to a 401(k). Interest builds tax-free, too!
Keep your money, forever: The money in your HSA is always yours to keep and can be rolled over from year to year. You can take your unused balance with you when you retire or leave Dexter.
HSA Contribution Limits & Contributions
* You must actively contribute to your HSA to receive Dexter's bi-annual HSA contributions.
You must also meet all IRS eligibility requirements and be actively contributing as of January 1 for the February payment and July 1 for the August payment.
Take Control of Your Healthcare Costs
With a CDHP, you pay a larger portion of your healthcare expenses to achieve the benefits of discounted premiums and costs. Thus, it can encourage you to be more cost-conscious and adopt a proactive approach to making informed decisions on your healthcare. This way, you can shop around for the best prices on medical procedures or medications and make the most of the tax-advantage HSA that comes with the CDHP Dexter offers.
Offers Flexibility with Lower Healthcare Needs
CDHPs are a great option for individuals and families with lower healthcare needs that desire flexibility. Dexter's CDHP offers lower premiums, enabling savings on insurance costs while still providing coverage for unforeseen medical expenses.
Tax-Advantage Savings Account
When enrolled in a CDHP, you can take advantage of a tax-free account - Health Savings Account (HSA). Any contributions made to the account (by either Dexter and/or you) are tax-deductible and the funds can grow tax free. Withdrawing funds tax-free is also possible if used for qualified medical expenses.
Using an HSA can reduce taxable income and save money on healthcare expenses. By taking advantage of this option, individuals can effectively manage their healthcare expenses - such as out-of-pocket costs, copayments and coinsurance, with ease and save money in the process.
Dexter Dollars / Free Money
Dexter contributes free money directly to your HSA! You may use these funds to pay for qualified medical, dental and vision expenses throughout the year or utilize the funds in case of an emergency. At the same time, you may save this money in case you don't need it for the future. Funds roll over from year to year! You must actively contribute to receive Dexter Dollars.
When a CDHP makes sense:
1
You're healthy and rarely get sick or injured.
2
You have no existing medical conditions.
3
When you can handle high out-of-pocket costs or want to take advantage of the 12-month loan through Lively.
4
You want to be eligible for the tax advantages of an HSA.
5
A great benefit to pair with a supplemental plan like Accident, Critical Illness or Hospital Indemnity.
