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

Norfolk Southern Employees, Prepare for Enhanced HSA Benefits in 2025

Healthcare Provider Update: Healthcare Provider for Norfolk Southern The primary healthcare provider for Norfolk Southern is Anthem, a subsidiary of Elevance Health, which offers a range of health insurance plans to the company's employees. Anthem provides various medical, dental, and vision coverage options, making it a crucial part of the employee benefits package. Potential Healthcare Cost Increases in 2026 As we approach 2026, Norfolk Southern employees face significant potential healthcare cost increases, a trend driven by a confluence of factors. With anticipated double-digit hikes in ACA marketplace premiums, some states could see increases exceeding 60%. A report indicates that many large employers, including Norfolk Southern, may shift more healthcare costs onto employees, with 51% planning to raise deductibles or out-of-pocket maximums as medical costs continue to inflate. Workers should be proactive in reviewing their benefits and making informed choices to mitigate the financial impact of these rising expenses in the coming year. Click here to learn more

For Norfolk Southern 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, Norfolk Southern 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 Norfolk Southern 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 Norfolk Southern 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 Norfolk Southern 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 primary purpose of the 401(k) plan offered by Norfolk Southern?

The primary purpose of the 401(k) plan offered by Norfolk Southern is to help employees save for retirement by providing a tax-advantaged way to invest their earnings.

Does Norfolk Southern offer a matching contribution for its 401(k) plan?

Yes, Norfolk Southern offers a matching contribution to help employees maximize their retirement savings.

How can employees at Norfolk Southern enroll in the 401(k) plan?

Employees at Norfolk Southern can enroll in the 401(k) plan through the company’s HR portal or by contacting the HR department for assistance.

What types of investment options are available in Norfolk Southern's 401(k) plan?

Norfolk Southern's 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles to suit different risk tolerances.

Can employees at Norfolk Southern change their contribution amount to the 401(k) plan?

Yes, employees at Norfolk Southern can change their contribution amount at any time, subject to the plan's guidelines.

What is the vesting schedule for the employer match in Norfolk Southern's 401(k) plan?

The vesting schedule for the employer match in Norfolk Southern's 401(k) plan typically follows a graded vesting schedule, which means employees gradually earn ownership of the employer contributions over time.

Are there any fees associated with Norfolk Southern's 401(k) plan?

Yes, there may be administrative fees and investment-related fees associated with Norfolk Southern's 401(k) plan, which are disclosed in the plan documents.

Can employees at Norfolk Southern take loans against their 401(k) savings?

Yes, employees at Norfolk Southern may have the option to take loans against their 401(k) savings, subject to the plan's terms and conditions.

What happens to a Norfolk Southern employee's 401(k) if they leave the company?

If a Norfolk Southern employee leaves the company, they have several options for their 401(k), including rolling it over to an IRA or a new employer's plan, or cashing it out (though this may incur taxes and penalties).

How often can employees at Norfolk Southern change their investment allocations in the 401(k) plan?

Employees at Norfolk Southern can typically change their investment allocations at any time, but there may be restrictions on frequent trading.