Health Savings Account (HSA)
Only Value HDHP 2500 Plan Participants are Eligible
What is an HSA?
An HSA is a financial account that you can use to accumulate tax-free funds to pay for qualified health care expenses, as defined by the Internal Revenue Service. This account acts like a regular bank account with a debit card. The money in the account ― both your own contributions and the contributions the Company makes on your behalf ― is owned by you and is fully portable. Funds can accumulate over time, roll over each year, and accrue interest.
If you use the funds for qualified health care expenses, you will pay no taxes. If you use the money for other expenses, you will pay taxes and a penalty fee.
How you save with an HSA
As an HSA user, you will save in several ways:
- HSA contributions are not taxed
- You earn tax-free interest on HSA balances
- HSA funds used for qualified medical expenses are not taxed
You can win with an HSA
Regardless of your personal medical situation, an HSA can empower you to maximize savings while building a reserve for the future.
- Capped tax-free contribution each pay period
- Tax-free employer contribution each pay period
- You earn tax-free interest on HSA balances
HSA funds remain yours to grow
With an HSA, you own the account and all contributions — yours and the Company’s. Unlike flexible spending accounts (FSAs), the entire HSA balance rolls over each year and remains yours even if you change health plans, retire or leave the company.
Supplement your retirement
Once your HSA balance reaches $2,000, you may invest your funds for increased earning potential that is also tax-free. After age 65, you can use your HSA much like a 401(k) and withdraw funds for any purpose. Qualified medical expenditures remain tax-free even into retirement.
Using your HSA for qualified medical expenses
HSA funds can be used for a variety of qualified medical, dental and vision expenses; for yourself, your spouse, and your qualified dependents. Eligible expenses include:
• Birth control
• Chiropractor
• Contact lenses
• Dental treatment
• Prescription eyeglasses
• Hearing aids
• Physical exams
• Prescriptions
• Stop-smoking programs
• Surgery (non-cosmetic)
• Therapy
• And more...
The Company Contributes!
You can save even more with a $250 or $500 annual Company contribution (depending on coverage level selected).
2026 HSA Contribution Limit
If you are or will be age 55 or over during the calendar year, you may also make a “catch-up” HSA contribution of an additional $1,000 each year. These contribution limits reflect combined limits for both your own and the Company contributions. You may modify your election for the HSA at any time by contacting Total Rewards.
$4,150 for individual coverage
$8,250 for family coverage
Questions?
For more information or if you have any questions regarding your Health Savings Account, contact Cigna’s Customer Service at 1-866-494-2111 or www.cigna.com.
Note: As a taxpayer, it is your responsibility to ensure that your HSA contributions do not exceed the maximum possible for your specific tax situation. Please consult your attorney, CPA or tax adviser about your specific tax situation before deferring monies to your Health Savings Account. The benefits of an HSA, who is qualified to have an HSA, etc. can be found in IRS Publication 969, beginning on page 2 https://www.irs.gov/pub/irs-pdf/p969.pdf. Please remember to keep copies of your receipts for health care expenses paid for through your HSA.