Dig into the HDHP/HSA

Still not sure how the HDHP/HSA works? Let’s dig into a few details, so you can best determine if this plan option is the right fit for you and your family in 2025.

How does the HDHP/HSA work?

  • With the HDHP/HSA option, you will pay a much lower cost per pay period. However, as the name suggests, you’ll have a higher deductible than the PPO, meaning you’ll pay more out-of-pocket when receiving care until you reach the deductible. (The EPO only has a deductible for inpatient hospital care.) Remember that preventive services are covered at no cost to you, even if you haven’t met your deductible.
  • The HDHP/HSA covers the same services and offers in-network and out-of-network benefits like the PPO, allowing you provider choice. However, different deductibles, coinsurance, and out-of-pocket maximums apply for the HDHP/HSA versus the PPO.
  • You can contribute pre-tax dollars to an HSA while you are covered, up to the IRS limit. Here are the IRS maximum contribution limits for 2025, and remember, this limit includes Colgate-Palmolive’s HSA contribution.

○ Employee Only coverage: $4,300

○ Employee + 1 or more coverage: $8,550

  • Funds in your HSA can be used to pay medical expenses in 2025 — or you can save for future medical costs.

Colgate-Palmolive contributes money to your HSA!

When you choose the HDHP/HSA medical plan option, Colgate-Palmolive will contribute money to your HSA. The money is yours (including if you leave Colgate-Palmolive), and you get to decide when to spend those dollars on health care expenses for you or your dependents, now or in the future. Colgate-Palmolive’s contributions vary based on your coverage level.

So, is the HDHP/HSA right for you?

Good question! You may want to consider the HDHP/HSA if any of the following apply to you:

  • Most of the health care you and your family receive is preventive or routine, so your out-of-pocket cost for health care services tends to be relatively low.
  • You have enough savings, have a preexisting HSA, or will save enough in the HSA to pay the full cost for health care up to the amount of your deductible (and your coinsurance, after meeting the deductible).
  • You have enough cash available to pay the full cost of your 2025 health care services and want to maximize your tax-free retirement savings by saving in the HSA and letting your HSA account grow tax-free to cover future medical costs.
  • If you need help deciding which medical option best fits your needs, take advantage of the Coverage Advisor Tool.