Spending Account and the Deductible

Our Consumer-Directed Health Plans allow your clients to give their employees a spending account option, which helps employees pay for qualified health care expenses. One option is to establish a health savings account (HSA), which can be set up with employer funds, employee funds, or both.

Our Health Savings Account plan is compatible with health savings accounts, which are funds that your clients' employees can use to pay for qualified health care expenses.

Here's how an HSA works:

  • The account can be funded by the employer, the employee, or both, but the account is owned by the employee. (There is a maximum amount that can be contributed annually.)
  • Funds in an HSA are completely portable so if an employee changes jobs or stops working, the funds remain with him/her.
  • There are no "use it or lose it" rules like there are with flexible spending accounts – unspent money stays in the HSA from year to year.
  • A separate trustee administers the HSA (not Blue Cross and Blue Shield of New Mexico).
  • HSA funds can be invested in interest bearing accounts.
  • Employer contributions are not subject to FICA taxes and employee contributions are tax deductible. Amounts distributed from the account are not taxable as long as they are used to pay for qualified health care expenses.

Embedded Deductible - Applies to $2600, $3500, $5000 plan options only: One family member meets the Individual OPX dollar amount; benefits begin to pay 100% for that member. Remaining Family members continue to apply services to the OPX until the total Family OPX amount is met. Then all family member services begin to pay 100%.

Aggregate DeductibleApplies $1300 & $1500 plan options only: All family members services apply to the Family OPX. Once the entire Family OPX is met; then all family member services are paid in full, no member share required.

Learn More About HSA:


Benefit Information


Prospective Producers: To apply to become a contracted producer, see our Prospective Producers page.