In 2005 there will be a significant new choice in the Federal Employees Health Benefits Program - High Deductible Health Plans (HDHPs) that incorporate Health Savings Accounts (HSAs).   HSAs are similar to federal Health Care Flexible Spending Accounts (HCFSAs), administered by FSAFEDS, in that they are funded with pre-tax dollars that can be used for the same type of health care expenses.  They are different from HCFSAs in that savings can accumulate from year to year without limit; there are no forfeitures.  HSAs are available to employees who elect a HDHP that has an annual deductible of at least $1,050 for self or $2,100 for family coverage.  HDHPs will make a contribution to HSAs from the HDHP premium.

The FSAFEDS HCFSA is not restricted to any type of plan.  Be sure that you acquaint yourself with the differences between HSAs and HCFSAs by carefully reviewing the information that will become available during the Open Season.  One of the most important things to keep in mind is that you cannot have a HSA and an FSA at that same time.

There is basic information available now at http://www.opm.gov/hsa/ and additional information will be provided in conjunction with the Open Season that runs from November 8 through December 13, 2004 and in HDHP brochures.

Questions regarding HDHPs and HSAs should be directed to http://www.opm.gov/hsa/.