What is a Health Savings Account?
A Health Savings Account, or HSA, is a personal savings account that works in combination with a High-Deductible Health Plan (HDHP) , like the Cigna Choice Fund HSA Plan, and can be used to pay for qualified medical , dental and vision expenses. You and MAA can contribute to your account, up to the federal limits. Your contributions to the account, the interest your account earns and withdrawals you make for qualified expenses are tax free, making it a triple tax- advantaged account. Additional advantages of an HSA include: • Annual Rollover: If you have money left in your HSA at the end of the year, it rolls over to the next year. • Portability: The money in your HSA remains available for future qualified expenses, even if you change health insurance plans, leave MAA to work for another employer or retire. • Convenience: A debit card will be issued so you can pay for prescriptions and other eligible expenses right away. If you wait for a bill to come in the mail , you can make a payment online, by mail or phone using your HSA debit card. Am I Eligible for an HSA? You must meet the following IRS requirements to be eligible for an HSA: • You must be enrolled in a HDHP, like the Cigna Choice Fund HSA health plan. • You must not be covered under another health plan, including Medicare Par ts A and B and TRICARE. • You must not be par ticipating in a Medical Flexible Spending Account (FSA) that reimburses for medical expenses unless it is limited to work with an HSA (for example, a Limited FSA for dental and vision expenses as described on page 28). • You must not be claimed as a dependent on another person’s tax return.
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