Page 13 - 2019 Benefit Guide Non-CA

HEALTH SAVINGS ACCOUNT

The Cigna HSA high deductible health plan is designed to work with a Health Savings Account (HSA) to give you
more control over how your health care dollars are spent. Federal legislation allows you to contribute to your HSA
on a pre-tax basis and then use these funds to pay for qualified health expenses until you meet your deductibles
and out-of-pocket maximums. If you do not use all of the money in your HSA in a given calendar year, the
remaining money “rolls over” for use in future years.

Eligibility
» You are not enrolled in other medical coverage with non-qualifying or deductibles less than $1,350 for an
individual
» Your spouse is not enrolled in a non-qualifying medical plan that also covers you
» You are not enrolled in Medicare Part A or B
» You have not received VA medial benefits for 90 days prior to contributing to the HSA
» You cannot be claimed as a dependent on someone else’s tax return
» You are not covered through a general purpose FSA with your spouse

Why Open A Health Savings Account?

Long Term Savings
HSAs are an excellent tax- saving retirement opportunity. In 2019, individuals and families with an eligible HDHP
you may contribute up to $3,450 for individual and $6,900 for family. Additionally, if you are age 55 or older,
you may make an additional “catch-up” contribution of $1,000. Funds in the HSA earn interest and roll over
each year.

Portability
The money you contribute to your HSA is completely portable. Even if you change jobs, health insurance plans
or retire - the account is always yours. Consider it your lifetime healthcare savings account.

Tax-Free Growth
HSAs are triple tax free - your contributions, investments and distributions for qualified medical expenses are all
exempt from federal taxes. (Consult your legal and tax advisor for limitations in certain states). Careful planning
and spending of your HSA funds can really add up to meaningful savings.

Investment Opportunity
Money in your HSA rolls over each year and earns interest developing meaningful savings. Once the balance in
your HSA reaches a certain threshold, you are allowed to move funds into a variety of mutual funds to further
grow your healthcare dollars.

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