Shop for Plans
Shop for your own coverage
- Medical
- Dental
- Other Supplemental
-
(Cancer Treatment, Hospital Indemnity, and more)
Plans through your employer
- Learn about the medical, dental, pharmacy, behavioral, and voluntary benefits your employer may offer.
- Explore coverage through work
Learn
- How to Buy Health Insurance
- Types of Dental Insurance
- Open Enrollment vs. Special Enrollment
- See all topics
Looking for Medicare coverage?
- Shop for Medicare plans
Shop for Plans
Shop for Plans
HSAs, HRAs, and FSAs
Savings accounts can help you save money.
HSAs, HRAs, and FSAs are types of accounts you can use to pay for certain health care expenses for you and your covered dependents.
What are HSAs, HRAs, and FSAs?
A health savings account (HSA) is a bank account you own to pay for eligible health care expenses or you can use it to save toward retirement. An HSA is offered with a qualified high-deductible health plan (HDHP) which typically has lower premiums/plan contributions and higher deductibles than a traditional health plan. If you have a health plan through your employer, the account is opened through the HSA provider chosen by your employer. You, your employer, and others can put money into your HSA up to a certain yearly limit set by the IRS guidelines.
A health reimbursement account (HRA) is a fund of money in an account that your employer owns and contributes to. HRAs are only available to employees who receive health care coverage from an employer.
A flexible spending account (FSA) is a spending account for different kinds of eligible expenses. There are three kinds of FSAs that may be available if you choose your own individual and family plan, or one through your employer:
- Health Care FSAs are for eligible medical expenses not covered by your health plan.
- Dependent Care FSAs cover eligible dependent care services for dependents (age 12 and under or disabled of any age).
- Limited-Purpose FSAs cover eligible dental and vision expenses if you are enrolled in a high-deductible health plan and have an HSA.
What's the difference between HSAs, HRAs, and FSAs?
|
HRA
|
HSA1
|
Health Care FSA
|
Dependent Care FSA
|
Limited Purpose FSA
|
|
|---|---|---|---|---|---|
|
What is it?
|
An account set up and funded by your employer to help pay for eligible health care expenses.
|
A savings account (compatible with a HDHP) that you own to help pay for qualified health care expenses.
|
An account you can use to pay for eligible health care expenses for you and your covered dependents.
|
An account you can use to pay for eligible dependent care services for your covered dependents age 12 and under, or disabled dependents of any age who are unable to care for themselves.
|
An account that can reimburse you for eligible dental and vision expenses when you are enrolled in an HSA plan.
|
|
Who's eligible?
|
Anyone who is part of a health plan set up by their employer and including an HRA offering.2
|
Anyone enrolled in a qualified HDHP.3
|
Anyone with a plan that includes FSAs.
|
Anyone with dependents age 12 and under or disabled of any age.
|
Anyone with a high-deductible plan, even if you are already enrolled in an HSA.
|
|
Who owns the account?
|
The employer who set up the plan.
|
You
|
You
|
You
|
You
|
|
Who can contribute?
|
Your employer
|
You, your employer, family, and others.
|
You, your employer.
|
You, your employer.
|
You, your employer.
|
|
Limit to the dollar amount that can be put in?
|
Depends on your employer's rules.
|
Yes. There is an IRS limit on how much you can put into it each year.
|
Yes. There is an IRS limit on how much you can put into it each year.
|
Yes. There is an IRS limit on how much you can put into it each year.
|
Yes. There is an IRS limit on how much you can put into it each year.
|
|
Will the balance carry over into the next plan year?
|
Your employer may not allow or may limit the amount that can carry over.
|
Yes. The money will stay in your account until you choose to spend it. You can save and use it into retirement.
|
You may be able to carry over up to $500 into the next plan year, depending on your plan.
|
No. At the end of the plan year, you lose any dollars left in your Dependent Care FSA.
|
You may be able to carry over up to $500 into the next plan year, depending on your plan.
|
|
Can I take the account with me? Is it portable?
|
No
|
Yes
|
No
|
No
|
No
|
|
Can the money in the account earn interest?
|
No
|
Yes
|
No
|
No
|
No
|
|
Can I use the money for things other than qualified or eligible health care expenses?
|
No
|
Yes, when you reach age 65. When you withdraw the money, it is subject to income tax only. If you are under age 65, the money is subject to income tax and may also be subject to a penalty tax.
|
No
|
No
|
No
|
|
Can I use the money to pay for COBRA or other plan premiums?
|
Yes, if allowed by your employer.
|
Yes, as allowed by IRS guidelines.
|
No
|
No
|
No
|
HSA, HRA, and FSA Frequently Asked Questions
This is provided for informational purposes only and is not intended to replace the advice of a qualified accountant or tax professional. Consult your personal tax advisor for assistance.
How do you use the money in the account?
Some HSAs, HRAs, and FSAs include a debit card so you can easily pay from your account at the time of service. Otherwise, you can reimburse yourself from an FSA4 or provide the receipt to your employer with an HSA.
What are the benefits?
All accounts are tax-advantaged5, which means any contributions are untaxed.6 However, HSA withdrawals will be taxed if you use the money for anything other than qualified medical expenses.
What expenses are eligible for FSAs?
You can use your HRA, HSA, or health care FSA to reimburse yourself for medical and dental expenses that qualify as federal income tax deductions (whether or not they exceed the IRS minimum applied to these deductions) under Section 213(d) of the tax code.
Tags
View Cigna Company Healthcare Names
1 Plans vary, but this is how an HSA generally works. You cannot open an HSA if, in addition to coverage under an HSA-qualified High Deductible Health Plan ("HDHP"), you are also covered under a Health Flexible Spending Account (FSA) or an HRA or any other health coverage that is not a HDHP. Prior to enrollment with an HSA provider, you must certify that you have enrolled or plan to enroll under a HDHP and are not covered under any other health coverage that is not a HDHP. Please refer to your plan documents, including specific information on your HSA, or contact your employer for more information on what’s covered and not covered by the plan. The HSA provider and/or trustee/custodian is solely responsible for all HSA services, transactions and activities. Cigna HealthcareSM and your employer are not responsible for any aspects of the HSA services, administration or operation
2 You may not enroll under this option if you are considered self-employed (including partners and more-than-2% shareholders in a subchapter S corporation). Please refer to your plan documents, including specific information on your HRA, or contact your employer for more information.
3 A High Deductible Health Plan (HDHP) is a health plan which typically has lower premiums/plan contributions and higher deductibles than a traditional health plan. You cannot open an HSA if, in addition to coverage under an HSA-qualified HDHP, you are also covered under a Health Flexible Spending Account (FSA) or an HRA or any other health coverage that is not a HDHP. Prior to enrollment with an HSA provider, you must certify that you have enrolled or plan to enroll under a HDHP and are not covered under any other health coverage that is not a HDHP. The HSA provider and/or trustee/custodian is solely responsible for all HSA services, transactions and activities. Cigna Healthcare and your employer are not responsible for any aspects of the HSA services, administration or operation.
4 To be eligible for reimbursement you must be working, looking for work, or going to school. If you have a spouse or partner, they must also be working, looking for work, or going to school.
5 HSA contributions and earnings are not subject to federal taxes and not subject to state taxes in most states. A few states do not allow pretax treatment of contributions or earnings.
6 Some cities and municipalities may impose income taxes on FSAs. For detailed information please contact your local department of taxation.
I want to...
Audiences
Manage Your Account
Cigna Healthcare Information
The Cigna Group Information
Disclaimer
Individual and family medical and dental insurance plans are insured by Cigna Health and Life Insurance Company (CHLIC), Cigna HealthCare of Arizona, Inc., Cigna HealthCare of Illinois, Inc., Cigna HealthCare of Georgia, Inc., Cigna HealthCare of North Carolina, Inc., and Cigna HealthCare of Texas, Inc. Group health insurance and health benefit plans are insured or administered by CHLIC, Connecticut General Life Insurance Company (CGLIC), or their affiliates (see a listing of the legal entities that insure or administer group HMO, dental HMO, and other products or services in your state). Accidental Injury, Critical Illness, and Hospital Care plans or insurance policies are distributed exclusively by or through operating subsidiaries of The Cigna Group Corporation, are administered by Cigna Health and Life Insurance Company, and are insured by either (i) Cigna Health and Life Insurance Company (Bloomfield, CT). The Cigna Healthcare name, logo, and other Cigna Healthcare marks are owned by The Cigna Group Intellectual Property, Inc.
All insurance policies and group benefit plans contain exclusions and limitations. For availability, costs and complete details of coverage, contact a licensed agent or Cigna Healthcare sales representative. This website is not intended for residents of New Mexico.
La aseguradora publica el formulario traducido para fines informativos y la versión en inglés prevalece para fines de solicitud e interpretación.
The insurer is issuing the translated form on an informational basis and the English version is controlling for the purposes of application and interpretation.