Health Savings Account (HSA)
What Is an HSA?
An HSA, or Health Savings Account, is a special savings account for eligible healthcare expenses. It offers tax advantages, allowing you to contribute money before taxes are taken out, reducing your taxable income.
Eligibility
You must be enrolled in the Cigna Consumer Health Plan (HDHP) to contribute to the HSA.
How It Works
Annual contribution limits
You and H&M contribute to the account. The amount depends on which HDHP coverage level you have:
- Employee-only coverage: up to $4,400 (+$500 H&M contribution*)
- Family coverage: up to $8,750 (+$1,000 H&M contribution*)
- Catch-up contribution for those 55 and older: contribute an additional $1,000
*This amount will be prorated depending on when you enroll.
Using your HSA funds
Funds can be used to pay for healthcare expenses like doctor’s visits, prescriptions, and more.
DO EMPLOYEES GET A CIGNA DEBIT CARD? HOW DOES THIS WORK?
Keep unsused funds
The money in your HSA rolls over from year to year, so you can save for future healthcare needs, and the account is portable, meaning it stays with you even if you change jobs or retire.
What’s the Difference Between an HSA and an FSA?
The biggest difference is that you keep any funds left in your HSA at the end of the benefit year, while you lose any money left in an FSA (the “lose it or use it” rule).
An HSA also accrues interest on the balance, making it an investment for future healthcare expenses.