What if the participant cannot accurately forecast their anticipated medical or dental expenses?
The eHSA automatically includes “Catastrophic Insurance” to provide an “umbrella of protection” in the event of unexpected Drug, Hospital or Private Duty Nursing (out-of-Hospital) expenses incurred as the result of a sudden serious illness or disease. There is a 24 month waiting period for pre-existing medications or conditions and no health statement is required. The Catastrophic coverage will not cover any dental expenses or elective medical expenses even though they are an eligible claim against a Health Spending Account. Catastrophic coverage ceases at age 70. The Catastrophic protection will cover claims for eligible expenses in excess of a deductible of $2,500 per person per policy year up to a maximum of $25,000 per annum and $1M lifetime. The Catastrophic coverage will reimburse eligible expenses at 100% after the deductible has been satisfied through eligible claims against the eHSA, or out-of-pocket in the event that the eHSA has been fully utilized.
