Another Choice in the FEHB Program is Here!!!

The Federal Employees Health Benefits (FEHB) Program offers High Deductible Health Plans (HDHPs) that incorporate Health Savings Accounts (HSAs).

HSAs are similar to Health Care Flexible Spending Accounts (HCSFSA) in that they are funded with pre-tax dollars that can be used for the same type of health care expenses. They are different from HCFSAs in that savings can accumulate from year to year without limit. There are no forfeitures. HSAs are available to employees who elect an HDHP that has an annual deductible of at lease $1,050 for self, or $2,100 for family coverage. HDHPs will make a contribution to HSAs from the HDHP premium. The HDHP/HSA gives you greater flexibility and discretion over how you use your health care benefits.

The HCFSA is not restricted to any type of plan. As an HCFSA participant, be sure that you acquaint yourself with the differences between HSAs and HCFSAs by carefully reviewing the information that will become available during this year's FEHB Open Season (November 8 to December 13, 2004). One of the most important things to keep in mind is that you cannot have an HDHP/HSA and an HCFSA at the same time.

The HSAs give you additional opportunities to save and better manage your hard-earned dollars. These health plans, together with an HSA or a Health Reimbursement Arrangement (HRA) provide a tax-advantage savings vehicle for the purpose of paying for your medical expenses.

Information concerning the HSAs is available at www.opm.gov/hsa/. The Office of Personnel Management (OPM) has a Frequently Asked Questions section that can be accessed through the following link: www.opm.gov/hsa/faq.asp.

For additional information, please visit the OPM website or contact your servicing personnel office.