With the Health Plus Savings Plans offered by UnitedHealthcare (UHC) and Cigna, you'll have low paycheck contributions, but the highest deductible. You can pay for care now or in the future with a tax-advantaged Health Savings Account, which Cisco helps fund.
When you enroll in the HPSP, Cisco opens a Health Savings Account (HSA) on your behalf, and again in 2012 will help you pay for care through an HSA contribution: $500 for you, or $750 for family coverage.
You own the account, which means that if you leave Cisco or change enrollment from the HPSP, you can keep your HSA funds, although you can't contribute additional funds to the account.
You can use your HSA to pay for qualified medical, dental, and vision out-of-pocket costs now or save your money for healthcare costs in the future—even in retirement. Be sure to consider your HSA investment strategy along with your 401(k) plan investments.
Key features of the Health Plus Savings Plan include:
There is one big difference to this plan: It provides a financial incentive for you to stay well and use care wisely. You keep unused HSA funds.
- Preventive care coverage. The plan is designed to help you focus on your health. Eligible preventive care expenses are covered at 100% and are not subject to the deductible.
- Tax-advantaged savings. You don't pay taxes on the funds Cisco contributes to your account, and you can contribute money from your paycheck on a pre-tax basis. (Some states, including California, New Jersey, and Alabama, will apply state income taxes to your HSA contributions).You won't pay taxes when you use your HSA funds for eligible health care expenses—now or in the future. And when you choose how to invest HSA funds through a range of investment options, your investment earnings grow tax-free. If you reach the 401(k) maximum contribution, you might find the HSA a great way to put away more pre-tax dollars each year.
- Control and flexibility. You control how you spend the money in your HSA by selecting cost-effective health services that meet your needs. If you do not use the money in your HSA in the short-term, you can reserve it for future medical expenses (for example, when you retire). The more you do to promote or preserve your own health, the greater the opportunity to increase your HSA balance over time.
- Portability. You own the money in your HSA. The account does not have the “use it or lose it” feature, as required in the Flexible Spending Accounts, so you can use it to pay for healthcare costs now or in the future.
The medical plan is administered by UHC and Cigna. Chase administers the HSA.
There is a lot to learn about this unique medical plan. Navigate through the links below to find out more about how the plan works:
Click to read FAQs about the Health Plus Savings Plan, Health Savings Account and Limited Purpose FSA.