Healthcare Plan Guided by Consumer Preferences
**Oberlin College Introduces Health Savings Accounts for Consumer-Directed Health Plan**
Oberlin College has announced the introduction of a Health Savings Account (HSA) as part of their Consumer-Directed Health Plan (CDHP). This innovative addition allows eligible employees to save tax-free funds for eligible medical expenses, enhancing their ability to manage healthcare costs effectively.
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## Key Features of Oberlin College's HSA with CDHP
The HSA comes with a variety of benefits, including:
### Contribution Limits
The Internal Revenue Service sets annual contribution limits for HSAs, which typically apply to Oberlin’s HSA plan. For 2025:
- **Individual Coverage:** Up to $4,150 total contribution - **Family Coverage:** Up to $8,300 total contribution - **Catch-Up Contributions:** An additional $1,000 for individuals age 55 and older
*Note:* These limits include both employee and employer contributions combined.
### Eligible Expenses
HSA funds can be used tax-free for a wide range of qualified medical expenses as defined by the IRS, including but not limited to:
- Doctor visits, copays, and deductibles - Prescription medications - Dental care and orthodontia - Vision care, including eyeglasses and contact lenses - Certain over-the-counter medications and medical supplies - Mental health and counseling services - Physical therapy and chiropractor services - Medical equipment like crutches or blood sugar monitors
*Important:* Funds used for non-qualified expenses may incur taxes and penalties.
### Account Management Options
Oberlin College’s HSA is typically managed through a partnered financial institution (such as Optum Bank or another provider), which offers:
- **Online Account Access:** View balance, transaction history, and contribution details - **Debit Card:** For easy payment at pharmacies, doctors’ offices, and other healthcare providers - **Mobile App:** Manage expenses and receive alerts on the go - **Investment Options:** Some HSAs allow investing funds beyond a certain balance in mutual funds or other vehicles to grow savings tax-free - **Roll-Over Feature:** Unused funds roll over year to year with no “use it or lose it” policy - **Portability:** The HSA remains with the employee even if they leave Oberlin College
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## Additional Notes
- To be eligible for Oberlin’s HSA, employees must enroll in the CDHP plan and be covered by a High Deductible Health Plan (HDHP) without other disqualifying health coverage. - The College may contribute a set amount annually to employee HSAs as part of their benefits package—check the current plan documents or HR for specifics. - Employees should verify contribution deadlines, tax filing procedures, and coordinate with payroll for pre-tax contributions through salary deductions.
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If you need the exact details of Oberlin College’s current HSA vendor, employer contributions, or specific plan documents, I recommend contacting Oberlin College Human Resources or visiting their internal benefits website.
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In addition to the HSA, Oberlin College has produced various YouTube videos to disseminate information about the CDHP plan, and a 2022 CDHP Informational Booklet is available for review.
For more information on how to fund your HSA or make the most of your HSA, I can help draft an email to HR or provide resources on the topic.
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To fund your HSA through payroll, complete the HSA Enrollment Form. If dollars remain at year-end, they roll over for future use. The Internal Revenue Service sets contribution limits annually for HSAs. Employees who participate in the CDHP with HSA plan have the option to fund their HSA account with pre-tax payroll deductions. There are no requirements for the Oberlin College contribution amounts.
- Employees at Oberlin College can utilize their Health Savings Account (HSA) funds for various eligible health-and-wellness expenses, such as prescriptions, dental care, vision care, and mental health services.
- The science of finance plays a crucial role in the effective management of healthcare costs, as demonstrated by the tax-free savings opportunity provided through the Health Savings Account (HSA) in Oberlin College's Consumer-Directed Health Plan (CDHP).
