CDHP with HSA | Lam Benefits

The Consumer Directed Health Plans (CDHPs), offered through Anthem and Kaiser, are paired with a Health Savings Account (HSA), a tax-advantaged account that helps you save for and pay for health care expenses. It is yours to keep, always—even if you change jobs or retire. An HSA can help protect you financially from predictable—or unexpected—health care costs.

How a CDHP with HSA works What you need to know How the plans compare Is a CDHP with HSA right for you?Where to learn more

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How a CDHP with HSA works

Here are the basics:

You’ll pay nothing for preventive care and most preventive care drugs.
If you have really big medical expenses, the CDHP has you covered.

Under the CDHP, the most you’ll pay in any year (your out-of-pocket maximum) is:


Individual coverage	$3,000
Family coverage	$6,000
Per individual with family coverage (You don’t need to hit the entire family maximum of $6,000 before the plan begins to pay 100% of costs for that family member.)	$3,000

For everything in between, here’s how it works:

Anthem CDHP


Individual coverage	$2,000
Family coverage	$4,000
Per individual with family coverage (You don’t need to hit the entire family deductible of $4,000 before the plan begins to pay 100% of costs for that family member.)	$3,000

Kaiser Permanente CDHP


Individual coverage	$2,000
Family coverage	$4,000
Per individual with family coverage (You don’t need to hit the entire family deductible of $4,000 before the plan begins to pay 100% of costs for that family member.)	$3,000

You can use money in your HSA to cover your out-of-pocket costs, including your deductible.

The 2023 medical plan comparison chart [PDF] provides more details.

What you need to know

With a CDHP, you’re responsible for more of your up-front health care costs (since you have a higher deductible to meet).
Lam will contribute to your HSA—up to $1,300 for individual coverage or $2,600 for family coverage. Contributions are made on a per-pay-period basis and are prorated for new employees—but the HSA On Demand feature means you’ll have access to the company’s projected full-year contribution to pay for eligible expenses anytime during the year.
You can contribute pretax money through paycheck deductions—up to $2,550 for individual coverage or $5,150 if you cover yourself and one or more dependents in 2023.
Both CDHPs have lower per-paycheck costs than the other plan options, which makes contributing to your HSA more affordable.
You’ll save on taxes three ways: You don’t pay federal taxes on the money you save; your balance earns interest, federal tax-free; and you don’t pay federal taxes on the money you withdraw, if you use it to pay for qualified medical expenses. (You will pay state taxes in California and New Jersey.)
It offers growth potential: You have the opportunity to potentially grow your HSA by investing part of your balance.
There’s no use-it-or-lose-it restriction. Unlike a Health Care Flexible Spending Account, which allows you to keep only $570 of any unused balance at the annual deadline, your HSA balance rolls over each year and keeps growing as your balance earns interest. (If you enroll in a CDHP with HSA, you are still eligible for a Limited Purpose Flexible Spending Account, which can be used for vision and dental expenses.)
It’s portable: Your HSA is always yours to keep—including contributions from Lam Research—even if you leave Lam or retire.
Your HSA will be opened automatically after you enroll in a CDHP, and Lam will begin making contributions. To contribute to your HSA from your paycheck, log in to PlanSource and select Update My Benefits. Then select HSA Election/Change from the drop-down menu. You may also set up your contribution by calling the Benefits Help Desk at 877-291-9494.
Optum Financial is the administrator of the HSA and processes payments from your HSA. You may access your account and submit claims using the Optum Financial website or the Optum Financial app

How the plans compare

See how the Anthem and Kaiser plans compare in two scenarios.

Note: Both scenarios assume only in-network providers are used.

Scenario 1: meet Maria

	Anthem CDHP with HSA	Anthem Base PPO	Kaiser CDHP with HSA	Kaiser HMO
In-network preventive care	$0	$0	$0	$0
Two prescriptions (one generic, one preferred brand, actual cost $110)	$110	$40	$110	$30
Company contribution to HSA	–$1,300	N/A	–$1,300	N/A
Payroll deductions	$1,046.50	$1,404	$890.50	$2,184
Total annual expense	$1,156.50	$1,444	$1,000.50	$2,214
Remaining HSA balance	$1,300	N/A	$1,300	N/A

Scenario 2: meet Don

	Anthem CDHP with HSA	Anthem Base PPO	Kaiser CDHP with HSA	Kaiser HMO
Out-of-pocket maximum	$6,000	$6,000	$6,000	$3,000
Company contribution to HSA	–$2,600	N/A	–$2,600	N/A
Payroll deductions	$3,588	$4,816.50	$2,990	$6,701.50
Total annual expense	$6,988	$10,816.50	$6,390	$9,701.50
Remaining HSA balance	$0	N/A	$0	N/A

Is a CDHP with HSA right for you?

Consider enrolling in a CDHP with HSA if:

You want to preserve as much of your paycheck as you can. The employee contribution is lower than for a traditional PPO or HMO, and Lam helps fund your HSA to cover eligible expenses, including meeting your deductible.
You’re thinking ahead and want an easy way to prepare for future expenses—or an alternative way to save for medical expenses in retirement.
You want control of your expenses: You like being able to decide what to pay from your HSA and what to pay out of pocket—and you want to be able to change that contribution amount at any time.
You’re interested in the tax savings you get by contributing pretax money to an HSA (and appreciate the opportunity to invest the funds).

Where to learn more

Health Savings Account
Medical plan overviews
2023 medical plan comparison chart [PDF]
CDHP With HSA Frequently Asked Questions [PDF]
Health Care Flexible Spending Account
Benefits Help Desk: benefits@lamresearch.com or 877-291-9494