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New Update: Healthcare Costs Increasing by Over 60% in Some States. Will you be impacted?

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Booz Allen Hamilton Holding Employees, Prepare for Enhanced HSA Benefits in 2025

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Healthcare Provider Update: Healthcare Provider for Booz Allen Hamilton Holding Booz Allen Hamilton Holding Corporation offers healthcare benefits primarily through employer-sponsored insurance plans. The company collaborates with leading insurers in the market to provide comprehensive coverage options for its employees, ensuring that they have access to a variety of healthcare services. Commentary on Potential Healthcare Cost Increases in 2026 As the healthcare landscape shifts towards 2026, Booz Allen Hamilton and its employees may face substantial increases in healthcare costs, driven by factors such as the impending expiration of enhanced federal premium subsidies from the Affordable Care Act (ACA) and escalating medical expenses. Projections indicate that healthcare premiums could surge by as much as 75% for many employees if subsidy protections are removed, particularly in states where insurers are seeking significant rate hikes. This trend underscores the importance of proactive financial planning for employees, as navigating these potential cost increases will be crucial for maintaining adequate health coverage in the coming years. Click here to learn more

For Booz Allen Hamilton Holding employees, maximizing contributions to your HSA in 2025 may be a smart way to control costs around healthcare and also grow your long-term savings for retirement, said.

With the increase in HSA contribution limits coming soon, Booz Allen Hamilton Holding employees approaching retirement should take advantage of this opportunity to grow their healthcare savings now so they can take a tax-efficient approach to future medical costs, said Sullivan.

In this article, we will discuss:

1. Limits on 2025 IRS health savings account (HSA) contributions.

2. How HSAs give you a triple tax advantage and help you control costs for healthcare.

3. HSAs & retirement planning & Medicare premiums.

The IRS has announced inflation-adjusted increases to the health savings account (HSA) contribution limits for 2025. The contribution cap for those with self-only health coverage will increase from USD 4,150 in 2024 to USD 4,300 in 2025, and for families, the maximum will increase from USD 8,300 to USD 8,550.

HSAs provide a triple tax benefit - contributions are deductible, account assets grow tax-free, and withdrawals for approved medical expenses are tax-free. Such features help HSAs manage healthcare costs.

Your high-deductible health plan must offer an HSA. For the year 2025, the IRS says the plans must carry a USD 1,650 individual deductible and USD 3,300 family deductible.Even with all these benefits, a 2023 survey by the Plan Sponsor Council of America found only 19% of HSA account holders invest—most keep their savings in cash—potentially missing big growth opportunities.

The IRS is also updating the catch-up contribution limit for Booz Allen Hamilton Holding employees over age 55 this year—keeping the USD 1,000 catch-up contribution for now.Understand HSAs and how they could benefit your financial strategy—especially with the rise of healthcare costs and retirement planning. Prompt financial decisions such as switching to a Roth IRA or drafting a will are life planning steps as well.

And for Booz Allen Hamilton Holding employees approaching retirement age: HSA money can help pay for Medicare premiums when you turn 65. That includes Medicare Advantage plans, as well as Parts B and D premiums, although Medigap premiums are not eligible for HSA expenditure. While not all medical expenses are covered by Medicare, funding these costs through HSAs could optimize your healthcare spending in retirement. A 2022 study by Fidelity Investments estimated medical costs for a retired couple would be around USD 315,000 after taxes.

Consider your health savings account (HSA) an essential tool in your financial toolkit. Like getting a new phone, increasing HSA contribution limits for 2025 gives you more options to manage and invest in your healthcare. You can think of contributing to your HSA as downloading an app that gives you triple tax benefits—deductions on contributions, tax-free growth, and tax-free withdrawals for qualified medical expenses. This keeps your health coverage as current and efficient as new technology—making your HSA a critical component of your Booz Allen Hamilton Holding retirement planning strategy.

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Sources:

1. Fidelity Investments.  'HSA Contribution Limits 2024 and 2025.'  Fidelity.com , 23 Jan. 2025,  https://www.fidelity.com/learning-center/smart-money/hsa-contribution-limits . Accessed 5 Mar. 2025.

2. Plan Sponsor Council of America (PSCA).  'Helping Employees Enroll in HSAs.'  PSCA.org , 9 Nov. 2023,  https://www.psca.org/news/psca-news/2023/11/PR_2023_HSAreprot . Accessed 5 Mar. 2025.

3. Internal Revenue Service (IRS).  'Part III Administrative, Procedural, and Miscellaneous.'  IRS.gov , May 2024,  https://www.irs.gov/pub/irs-drop/rp-24-25.pdf . Accessed 5 Mar. 2025.

4. Woodruff Sawyer.  'IRS Releases 2025 HSA Contribution Limits and HDHP Deductible and Out-of-Pocket Limits.'  Woodruffsawyer.com , 13 May 2024,  https://woodruffsawyer.com/insights/2025-hsa-limits-released . Accessed 5 Mar. 2025.

5. Plan Sponsor Council of America (PSCA).  'HSAs: A Growing Retirement Savings Strategy.'  401k Specialist , Nov. 2023,  https://401kspecialistmag.com/higher-numbers-of-hsas-positioned-as-retirement-savings-strategy . Accessed 5 Mar. 2025.

What is the 401(k) plan offered by Booz Allen Hamilton Holding?

The 401(k) plan at Booz Allen Hamilton Holding is a retirement savings plan that allows employees to save a portion of their paycheck before taxes are taken out.

How does Booz Allen Hamilton Holding match employee contributions to the 401(k) plan?

Booz Allen Hamilton Holding offers a matching contribution to the 401(k) plan, where they match a percentage of the employee's contributions, up to a certain limit.

What are the eligibility requirements for the 401(k) plan at Booz Allen Hamilton Holding?

Employees of Booz Allen Hamilton Holding are eligible to participate in the 401(k) plan after completing a specified period of service, typically within the first year of employment.

Can employees of Booz Allen Hamilton Holding change their contribution amount to the 401(k) plan?

Yes, employees of Booz Allen Hamilton Holding can change their contribution amount at any time, subject to certain plan rules and limits.

What investment options are available in the Booz Allen Hamilton Holding 401(k) plan?

The Booz Allen Hamilton Holding 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and company stock.

Does Booz Allen Hamilton Holding offer financial counseling for employees regarding their 401(k) plans?

Yes, Booz Allen Hamilton Holding provides access to financial counseling services to help employees make informed decisions about their 401(k) investments.

How can employees of Booz Allen Hamilton Holding enroll in the 401(k) plan?

Employees can enroll in the Booz Allen Hamilton Holding 401(k) plan through the company’s HR portal or by contacting the HR department for assistance.

What is the vesting schedule for the employer match in the Booz Allen Hamilton Holding 401(k) plan?

The vesting schedule for the employer match in the Booz Allen Hamilton Holding 401(k) plan typically follows a graded schedule, where employees become fully vested after a certain number of years of service.

Are there any fees associated with the Booz Allen Hamilton Holding 401(k) plan?

Yes, the Booz Allen Hamilton Holding 401(k) plan may have administrative fees and investment-related fees, which are disclosed in the plan documents.

What happens to my Booz Allen Hamilton Holding 401(k) plan if I leave the company?

If you leave Booz Allen Hamilton Holding, you can choose to leave your funds in the plan, roll them over to another retirement account, or withdraw them, subject to tax implications.

With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.
In 2024, Booz Allen Hamilton announced a restructuring plan involving a reduction in workforce and changes in their benefits structure. The company is focusing on aligning its workforce with evolving client demands and strategic goals.
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For more information you can reach the plan administrator for Booz Allen Hamilton Holding at 901 15th St NW Washington, DC 20005; or by calling them at +1 703-902-5000.

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