What is an HDHP?
An HDHP stands for High-Deductible Health Plan. It is a type of health insurance that offers more control over how you spend your healthcare dollars. You pay lower monthly premiums out of your paycheck, but more out-of-pocket for medical care until you reach your yearly deductible limit and the insurance company begins paying its share.
What is an HSA?
An HSA stands for Health Savings Account. It is a tax-advantaged financial account that allows you to save money for qualified medical expenses. It is specifically designed to be paired with an HDHP.
HSAs aren’t available with traditional health plans. To open and contribute to an HSA, you must be enrolled in a qualified HDHP—like The Alliance Health Plan! Our plan gives you access to a powerful financial tool that other plans simply don’t offer.
How They Work Together
If you’ve ever felt unsure about an HDHP, you’re not alone. A higher deductible can seem intimidating at first—but when paired with an HSA, it becomes one of the most powerful and flexible ways to manage your healthcare dollars.
As summer approaches, now is a great time to take a fresh look at how this combination can work for you and your family!
More Than Coverage
You’re not just paying for healthcare—you’re building a strategy with triple tax advantages:
- Tax savings: Contributions are pre-tax, lowering your taxable income
- Tax-free growth: Funds can grow over time
- Tax-free spending: Withdrawals for qualified expenses aren’t taxed
Plus, your balance rolls over year to year. Unlike other accounts, there’s no “use it or lose it.” It’s yours to keep—for life!
Maximize Your HSA Advantage
Whether you’re scheduling care or planning ahead, your HSA can cover expenses today while building savings for tomorrow. Each year, the IRS sets contribution limits for HSAs. For 2026, you can contribute up to:
- $4,400 for individual coverage
- $8,750 for family coverage
- +$1,000 catch-up contribution if you’re age 55+
Consider increasing your contributions toward the annual limit. The more you contribute, the more you benefit. Your HSA funds can be used to cover qualified medical expenses when you need them.
And once you build a balance, you can invest your HSA funds—giving your savings the opportunity to grow even more over time through compound interest.
Once you turn 65, you can use your HSA funds for any purpose. Withdrawals for non-medical expenses are taxed as ordinary income—similar to a traditional retirement account—while qualified medical expenses remain tax-free.
Explore Your Options
The Alliance Health Plan offers employer-sponsored HDHP options for employees, each paired with access to a Health Savings Account (HSA).
If you are enrolled in the plan, log in to your Lively account to review your HSA balance. If you wish to increase your contribution amount, contact your payroll department.
If you are an considering adopting the plan, we want to talk with you! Connect with an Alliance Benefits Consultant to see if our plan is right for your ministry staff.
