Health Savings Account (HSA) and Health Reimbursement Account (HRA)

About Consumer-Driven Health Plans

Consumer-Driven Health Plans (CDHPs) give employers the flexibility to combine a qualifying medical plan with either a health savings account (HSA) or health reimbursement account (HRA).

Cigna's Consumer-Driven Health Plans are designed to deliver savings for clients, without shifting costs to customers. Employers can choose to offer one or both of the Cigna CDHP plans. The health savings account (HSA) gives employees ownership of a tax-exempt savings account they can use to contribute pre-tax dollars to pay for covered health care costs.¹ The health reimbursement account (HRA) combines a health plan with an employer-funded HRA to help employees pay for covered health care costs.

Typical Plan Structure

With both options, Cigna delivers a one-stop employer and employee experience by integrating administration and any interactions with HSA bank vendors, as well as service and wellness programs.

HRA Plan

• Employer-owned account. The employer chooses limits on remaining HRA dollars that roll over to future plan years.
• Most health plans are eligible. Employers choose the underlying medical plan.
• Contributions are made by the employer. Employers choose how much to contribute.
• Automatic claim forwarding option to pay health care providers directly from the HRA.

HSA Plan

• Employee-owned account.
• Qualified high-deductible plans are eligible. Premiums for these plans are typically lower than traditional medical plans.
• Contributions can be made by the employer and the employee, up to the IRS limit each year.
• Preventive prescription drugs can be covered before employees meet their deductible.
• Optional Limited Purpose Flexible Spending Account (FSA) for vision and dental expenses. This gives your employees the freedom to enroll in an HSA while saving additional pre-tax dollars in a FSA to help pay for eligible vision and dental expenses.²