Page 7 - 2015 Enrollment Guide
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Cigna Choice Fund Health Savings Account (HSA)
What is a Health Savings Account?
A Health Savings Account (HSA) is a tax-advantaged savings account that is used with a high-deductible health plan (HDHP),
and allows you and your eligible dependents to use it for various qualified medical expenses. If you meet the IRS requirements to
establish an HSA, you and your employer can make contributions to your HSA, and the money you contribute from your paycheck is
deducted on a pre-tax basis. HSA funds are not taxed when withdrawn for qualified medical expenses. . There are annual limits set
by federal regulations on how much you can contribute, but your balance carries over year to year, can earn tax-deferred interest,
and belongs to you even if you change employers.
What are the HSA contribution limits for 2015?
+ Individuals can contribute up to $3,350 (minus the amount of the employer contribution of $250).
+ Families can contribute up to $6,650 (minus the amount of the employer contribution of $500).
+ Individuals age 55 to 65 can contribute an extra $1,000 under the Catch-Up Contribution provision.
What are qualified medical expenses?
In most cases, qualified expenses include health plan deductibles & copays, prescription drugs, dental and vision care, psychiatric Cigna Choice Fund Health Savings Account (HSA)
& psychological treatment, long-term care premiums, bandages, chiropractic visits, and much more. If you lose your job, you
may use your HSA to pay health insurance premiums if you are collecting federal or state unemployment benefits or have COBRA
continuation coverage through a former employer. You may also use the HSA to pay Medicare premiums after you turn 65. For
additional information, visit http://www.irs.gov/pub/irs-pdf/p502.pdf.
Can I use the account for non-medical expenses?
Yes, but there are tax implications. You can withdraw funds from an HSA at any time. Withdrawals used for qualified medical
expenses are not taxed, but withdrawals for any other purposes will be subject to income tax. And, if you’re under 65, the amount
you withdraw for non-medical expenses is also subject to an additional 20% tax penalty.
How does the Cigna Choice Fund HSA work?
The Cigna Choice Fund HSAs are administered by JPMorgan Chase Bank, N.A. Member FDIC. When you and certain eligible
dependents incur a qualified medical expense after you establish the HSA, such as a doctor or hospital visit, you can pay using
the JPMorgan Chase HSA MasterCard-branded debit card or by using online bill pay via the secure HSA website. If you don’t have
enough money in your HSA to cover a medical expense, you can pay using other sources, and simply reimburse yourself later when
the money is available. You won’t need to submit any receipts for approval, but it’s important to maintain receipts for all expenses
for tax and recordkeeping requirements.
Who is eligible to contribute to the Cigna Choice Fund HSA?
In order to be eligible to contribute to an HSA, you must satisfy the following conditions:
+ You must enroll in the Cigna Choice Fund Open Access Plus HSA Plan.
+ You must not be covered under another health plan, including Medicare Part A/B and TRICARE.
+ You and your spouse must not be enrolled in a Health Care FSA that reimburses for medical expenses.*
+ You must not be claimed as a dependent on another person’s tax return.
*If you have a balance in your 2014 Health Care FSA that carries over to the Grace Period (1/1/2015-3/15/2015), you cannot open or make pre-tax
payroll contributions to your HSA until 4/1/2015.
Cigna Choice Fund Health Savings Account (HSA)
What is a Health Savings Account?
A Health Savings Account (HSA) is a tax-advantaged savings account that is used with a high-deductible health plan (HDHP),
and allows you and your eligible dependents to use it for various qualified medical expenses. If you meet the IRS requirements to
establish an HSA, you and your employer can make contributions to your HSA, and the money you contribute from your paycheck is
deducted on a pre-tax basis. HSA funds are not taxed when withdrawn for qualified medical expenses. . There are annual limits set
by federal regulations on how much you can contribute, but your balance carries over year to year, can earn tax-deferred interest,
and belongs to you even if you change employers.
What are the HSA contribution limits for 2015?
+ Individuals can contribute up to $3,350 (minus the amount of the employer contribution of $250).
+ Families can contribute up to $6,650 (minus the amount of the employer contribution of $500).
+ Individuals age 55 to 65 can contribute an extra $1,000 under the Catch-Up Contribution provision.
What are qualified medical expenses?
In most cases, qualified expenses include health plan deductibles & copays, prescription drugs, dental and vision care, psychiatric Cigna Choice Fund Health Savings Account (HSA)
& psychological treatment, long-term care premiums, bandages, chiropractic visits, and much more. If you lose your job, you
may use your HSA to pay health insurance premiums if you are collecting federal or state unemployment benefits or have COBRA
continuation coverage through a former employer. You may also use the HSA to pay Medicare premiums after you turn 65. For
additional information, visit http://www.irs.gov/pub/irs-pdf/p502.pdf.
Can I use the account for non-medical expenses?
Yes, but there are tax implications. You can withdraw funds from an HSA at any time. Withdrawals used for qualified medical
expenses are not taxed, but withdrawals for any other purposes will be subject to income tax. And, if you’re under 65, the amount
you withdraw for non-medical expenses is also subject to an additional 20% tax penalty.
How does the Cigna Choice Fund HSA work?
The Cigna Choice Fund HSAs are administered by JPMorgan Chase Bank, N.A. Member FDIC. When you and certain eligible
dependents incur a qualified medical expense after you establish the HSA, such as a doctor or hospital visit, you can pay using
the JPMorgan Chase HSA MasterCard-branded debit card or by using online bill pay via the secure HSA website. If you don’t have
enough money in your HSA to cover a medical expense, you can pay using other sources, and simply reimburse yourself later when
the money is available. You won’t need to submit any receipts for approval, but it’s important to maintain receipts for all expenses
for tax and recordkeeping requirements.
Who is eligible to contribute to the Cigna Choice Fund HSA?
In order to be eligible to contribute to an HSA, you must satisfy the following conditions:
+ You must enroll in the Cigna Choice Fund Open Access Plus HSA Plan.
+ You must not be covered under another health plan, including Medicare Part A/B and TRICARE.
+ You and your spouse must not be enrolled in a Health Care FSA that reimburses for medical expenses.*
+ You must not be claimed as a dependent on another person’s tax return.
*If you have a balance in your 2014 Health Care FSA that carries over to the Grace Period (1/1/2015-3/15/2015), you cannot open or make pre-tax
payroll contributions to your HSA until 4/1/2015.
