If you switch from HealthSelect of Texas to Consumer Directed HealthSelect – or vice-versa – during the plan year, any out-of-pocket costs you’ve paid will apply to the out-of-pocket maximum in your new plan. (Please note that there is no out-of-network out-of-pocket maximum in HealthSelect of Texas.) Any amounts paid toward the out-of-pocket maximum in an HMO won’t transfer to Consumer Directed HealthSelect or HealthSelect of Texas, or vice-versa.
Changing from a high-deductible health plan like Consumer Directed HealthSelect to a non-HDHP plan, or vice versa, during the plan year could have an impact on your taxable income, depending on how much money is deposited in your health savings account before or after you change plans. In general, the maximum you can contribute to an HSA during the plan year is based on how long you participate in an HDHP.
For more information, please see the in-depth HSA Frequently Asked Questions.
There are other things to consider, such as the ability to participate in a health care flexible spending account. You should carefully review IRS regulations, or talk to a financial or tax advisor to make sure you understand how changing from an HDHP to a non-HDHP (or vice versa) during the plan year can affect your HSA and taxable income.