In addition, annual out-of-pocket expenses under the plan (including deductibles, co-pays, and co-insurance) cannot exceed:

2009      $5,800* – Self-only coverage
              $11,600* – Family coverage
2010      $5,950* – Self-only coverage
              $11,900* – Family coverage

In general, the deductible must apply to all medical expenses (including prescriptions) covered by the plan. However, plans can pay for “preventive care” services on a first-dollar basis (with or without a co-pay). “Preventive care” can include routine pre-natal and well-child care, child and adult immunizations, annual physicals, mammograms, pap smears, etc.

HSA Contributions**
You can make a contribution to your HSA each year that you are eligible. You can contribute up to the amount of your HDHP deductible but no more than:

2009      $3,000* – Self-only coverage
              $5,950* – Family coverage
2010      $3,050* – Self-only coverage
              $6,150* – Family coverage

Catch-Up Contributions
Individuals age 55 and older can also make additional “catch-up” contributions. The maximum annual catch-up contribution for 2009 and after is $1,000

Determining Your Contribution
Your eligibility to contribute to an HSA for each month is generally determined by whether you have HDHP coverage on the first day of the month. Your maximum contribution for the year is the greater of: (1) the full contribution, or (2) the pro rated amount. The full contribution is the maximum annual contribution for the type of coverage you have on December 1. The pro rated amount is 1/12 of the maximum annual contribution for the type of HDHP coverage you have times the number of months you have that type of coverage. If your contribution is greater than the pro rated amount, and you fail to remain covered by an HDHP for the entire following year, the extra contribution above the pro rated amount is included in income and subject to an additional 10 percent tax penalty.

For More Information
Please contact your Human Resources Department or HSA representative.

* These amounts are adjusted annually for inflation.
**Contributions can be made as late as April 15 of the following year.