HEALTH SAVINGS ACCOUNT
Resources
The Consumer Driven Health Plan (CDHP) Paired With Health Savings Account (HSA)
This plan is designed to meet your health care needs today, throughout your career and into retirement. The CDHP has a higher annual deductible, but features a Health Savings Account (HSA), which is a tax-advantaged savings account that allows you to set aside pre-tax contributions to pay for eligible health care expenses now and in the future.
- Covers 100% of preventive care services provided in-network (according to age and gender
- Allows you to visit any provider – in- or out-of-network
- You receive a higher level of coverage when you utilize in-network providers
- Requires that you pay medical and prescription costs out-of-pocket until the deductible is met
- Allows you to open and contribute to a tax-advantaged Health Savings Account to pay for medical expenses now and in the future
| Southwest’s contributions in 2024* | You can contribute up to** | |
| Individual | $500 | $3,650 |
| Family |
$1,000 |
$7,300 |
*Southwest will deposit contributions into your HSA on a biweekly pay cycle basis. In order to receive Southwest contributions, you will need to contribute a minimum of $.01 per pay cycle up to no more than the IRS maximum, and activate your account at HealthEquity. Shortly after completing the enrollment process, you will receive email instructions from HealthEquity on how to open your account. For further information, please refer to the HSA section on www.mysouthwestbenefits.com.
YOUR HEALTH SAVINGS ACCOUNT
- Allows you to make contributions with pre-tax dollars through payroll deduction
- Is tax-advantaged. You do not pay federal or state taxes on Southwest’s contributions or the money you add to the account
- Can be used for the CDHP’s annual deductible, coinsurance and other qualified medical expenses
- Can also be used for eligible dental and vision expenses
- Is flexible. Contributions can be changed during the year by contacting Human Resources
- Does not include a “lose it or use it” feature – the balance rolls over year after year
- Includes investment options when your balance reaches $2,000
- Is your account – your HSA goes with you if you leave Southwest for any reason
- Is regulated by the IRS – in 2024, the maximum limit, including Southwest’s contributions to your account is $4,150 single/$8,300 family**
