The CDHP (Consumer Directed Health Plan) is a type of medical insurance plan that offers lower monthly premiums than more traditional medical plans like PPO’s or HMO’s in exchange for a higher deductible.

A health insurance deductible is the amount you must pay before health insurance kicks in and starts paying. The deductible is an annual amount that usually resets at the beginning of the calendar year. Once you’ve hit your annual deductible, then your insurance kicks in and starts helping. The CDHP plan pays 80% of your health care costs until your total out-of-pocket maximum for the year is met.

When you enroll in a qualified CDHP, you’re eligible to open a Health Savings Account (HSA). An HSA is a personal savings account, funded by you and/or Belkin, that you can use to pay qualified out-of-pocket medical expenses with pretax dollars.

When are you eligible to open an HSA?

You are eligible to open and fund an HSA if you:

  • Are enrolled in an HSA-eligible CDHP.
  • Are not covered by other non-qualified high deductible health plans, such as your spouse’s non-qualified high deductible health plan, Health Care Flexible Spending Account or Health Reimbursement Account.
  • Are not eligible to be claimed as a dependent on someone else’s tax return.
  • Are not enrolled in Medicare or TRICARE.
  • Have not received Veterans Administration benefits.

You can use the money in your HSA to pay for qualified medical expenses now or in the future. Your HSA can be used for your expenses and those of your spouse and dependents, even if they are not covered by the CDHP.

Tax Planning Benefit: Funds in your HSA roll over from year to year and are not subject to forfeiture like funds in a Health Care FSA and Limited Purpose Health Care FSA. This means your HSA funds can be used any time for medical expenses, or you can let your balance accumulate tax-free for later use, and build up savings for future medical expenses.

Tax Savings Benefit: Funds set aside in your Health Savings Account (HSA) can give you double the tax savings. Contributions to your HSA are tax-deductible* and the funds you use to pay for eligible expenses are tax-free. In addition, if you choose to invest your HSA funds, any earnings you receive from your investments are not taxed.

*The HSA is pre-tax federally and in all states excluding California, and New Jersey.

Employer Contributions

If you choose the HSA eligible medical plan for 2022, Belkin will contribute a pro-rated amount based on the number of months you participate in the CDHP.

Coverage Level Annual HSA Contribution for 2022
Employee Only $500
Employee + 1 $1,000
Employee + Family $1,000

Maximum Contributions

Coverage Level 2022 IRS HSA Contribution Limit Belkin contributes… You can contribute up to this amount to your HSA for 2022**
Employee Only $3,650 $500* $3,150**
Employee + 1 $7,300 $1,000* $6,300**
Employee + Family $7,300 $1,000* $6,300**

*Prorated for each month you participate in the CDHP.

**The IRS allows for an HSA Catch-Up Contribution of an additional $1,000 for eligible employees age 55 or older. Catch-up contributions can be made during the year by HSA-eligible participants who will turn 55 by year-end.

Note: The IRS doesn’t consider a domestic partner to be a spouse under federal tax law, regardless of state law exceptions. Therefore, you can’t withdraw funds tax-free to pay for your domestic partner’s qualified expenses, unless he or she is defined as a qualified tax dependent by the IRS.

Important!

HSA contribution limits are prorated based on the date you opened your HSA and the number of full months remaining in the calendar year. This helps you avoid taxes and penalties on excess contributions, per IRS regulations. You should consult your personal tax adviser with questions regarding your HSA and the filing of your tax returns.

The CDHP and HSA: How They Work Together

Together, your and Belkin’s contributions can cover a portion of your deductible and coinsurance.

Free In-Network Preventive Care

To emphasize the importance of wellness, preventive care is covered at 100%, if you receive this care from in-network providers.

Deductible

You pay for your initial medical costs until you meet your annual deductible. This deductible is higher compared to the other medical plans, but offset by HSA contributions you and Belkin may make.

Coinsurance

Once the deductible is met, you pay a portion of the cost (coinsurance) until you meet the out-of-pocket maximum.

Out-of-Pocket Maximum

The plan limits the total amount you’ll pay each year. Once you meet your out-of-pocket maximum, the plan pays 100% of your eligible, in-network expenses for the remainder of the year.

Opening an HSA

The HSA is administered by Optum Bank. Once you enroll in a CDHP medical plan, you’ll receive a debit card to help manage your HSA payments. Funds available for payment are limited to the balance in your HSA.

You may open an HSA bank account with the financial institution of your choice; however, payroll deductions are available only for HSAs through Optum Bank.

Here’s what you need to do:

  1. Go to Optum Bank and select “Register”
  2. Ensure you’re eligible to open an HSA by reading the IRS regulations.
  3. Be sure to have your Social Security number, a valid email address, and your plan’s policy number handy (UHC Select Plus CDHP: 906404).
  4. Complete the entire Account Holder information section. Remember, any items with an asterisk are required.
  5. If you are adding a spouse or dependent to your HSA, you will also need to fill out the “Additional Cardholder” section of the form.
  6. Finally, you must agree to the Optum Bank Terms and Conditions.

Once your application has been processed, you will receive a debit card to access your HSA funds. The application process can take up to five business days, and you will receive an email from Optum when the process is complete. Please note: Optum charges a monthly account administration fee of $1.00 for all accounts with a balance of less than $500. This monthly administration fee will be automatically deducted from your account balance, if applicable.

Contact Optum Customer Service at (866) 234-8913 if you have questions or need help enrolling.

Important!

If you do not open your Optum Bank account within 60 days of your plan’s effective date, contributions will not be made to your account. This includes any funds Belkin would have contributed to your account on your behalf.

Keep in mind that you will only be eligible to receive Belkin’s employer HSA contribution if you elect the UnitedHealthcare Select Plus HSA Compatible Plan (CDHP) and open your HSA through Optum Bank.

You cannot open a Health Care Flexible Spending Account (FSA) and an HSA at the same time.

If you enroll in the CDHP, you are eligible to elect an HSA only; if you enroll in a medical plan other than a CDHP, you are eligible to elect a Health Care FSA only. However, you are eligible to elect a Limited Purpose FSA if you enroll in the CDHP, which is an FSA specifically for eligible dental and vision expenses only and for employees who have an HSA. Regardless of the medical plan you’re enrolled in, you can enroll in a Dependent Care Flexible Spending Account.