hra, hsa, fsa what’s the difference? To help you understand the differences between the Health Reimbursement Account (HRA), the Health Savings Account (HSA), the Limited Flexible Spending Account (FSA) and the Medical Flexible Spending Account (FSA), please review the table below.
Health Reimbursement Account (HRA)
Health Savings Account (HSA)
Limited Flexible Spending Account (FSA)
Medical Flexible Spending Account (FSA)
Feature
You must: • only have medical coverage under a High Deductible Health Plan (HDHP), such as the Cigna Choice Fund HSA plan • not be enrolled in Medicare . • not be participating in a Medical FSA (you may be enrolled in the Limited FSA as an alternative) • not be claimed as a dependent on someone else’s tax return
You must be enrolled in a High Deductible Health Plan (HDHP) and a Health Savings Account (HSA), such as the Cigna Choice Fund HSA medical plan
You cannot be enrolled in a High Deductible Health Plan (HDHP) and Health Savings Account (HSA)
You must be enrolled in the Cigna Choice Fund HRA medical plan
Eligibility requirements
Who owns the account? Who administers the account? Who can contribute to the plan?
MAA
You
MAA
MAA
Cigna
HSA Bank
Discovery Benefits
Discovery Benefits
MAA
You and MAA
You
You
MAA will contribute: • $250 for individual coverage • $500 for family coverage • up to an additional $500 for you and your spouse based on completion of wellness activities through Cigna’s Motivate Me ® program
MAA will contribute: • $250 when you cover one or more children (no spouse) • up to $250 each for you and your spouse based on completion of wellness activities through Cigna’s Motivate Me ® Program
What are the annual contribution limits for 2018?
You may contribute up to $2,650
You may contribute up to $2,650
You may contribute: • up to $3,200 for individual coverage
• up to $6,400 for family coverage • up to an additional $1,000 if you are between the ages of 55 and 64 in 2018
Are mid-year contribution changes allowed?
You may change your contributions as a result of a qualifying life event
Lorem ipsum You may change your contributions as a result of a qualifying life event
You may change your contributions at any time
N/A (only MAA contributes)
When are the funds available?
January 1 or the date your coverage begins
As they are deposited into your account
January 1 or the date your coverage begins
January 1 or the date your coverage begins
As medical claims are incurred, Cigna uses the funds to pay expenses applied toward your out-of-pocket costs, such as copays, deductible, and coinsurance Unused funds carry over from year to year if you remain covered under the Choice Fund HRA plan. If you cease to be covered by the Choice Fund HRA plan, the balance is forfeited
You can access your funds by HSA debit card, online bill pay, HSA checkbook, and/or medical auto claim forwarding through Cigna
You can access your funds by FSA debit card or submitting a claim for reimbursement.
You can access your funds by FSA debit card or submitting a claim for reimbursement
How are the funds used?
You may carryover up to $500 to the next year. Any additional remaining amounts are forfeited
You may carryover up to $500 to the next year Any additional remaining amounts are forfeited
What happens to funds at the end of the plan year?
Unused funds carry over from year to year
No. You may submit claims incurred through your termination date Your payroll contributions are withheld before taxes and qualifying distributions are tax- free
No. You may submit claims incurred through your termination date Your payroll contributions are withheld before taxes and qualifying distributions are tax- free
Can you take the account with you if you leave MAA?
No
Yes
N/A (only MAA contributes to this
Your payroll contributions are withheld before taxes and qualified distributions of contributions and earnings are tax-free
What are your tax advantages?
account and you are not taxed on the MAA contributions or qualifying distributions)
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