HRAs and HSAs
The high-deductible Cigna choice fund medical plans are automatically paired with either a Health Reimbursement Account (HRA) or Health Savings Account (HSA). These accounts allow you to pay for qualifying out-of-pocket healthcare expenses and can be used towards your deductible. While the HRA and HSA plans are similar, there are some differences you should be aware of. Take a moment to review how each account type works prior to making your medical plan decision. Please note that these accounts are not eligible with the HMO plan.
If you enroll in one of the Cigna Choice Fund plans, Ashford University will contribute to your HRA or HSA account. The amount deposited in the fund is prorated based on your enrollment date and coverage level.
- $750/year for employee only coverage
- $1,500/year for employee + dependent(s) coverage
How does the Health Reimbursement Account (HRA) Work? Direct Link
- A reimbursement account that you can use towards your qualifying medical and dental expenses.
- Vision expenses are not eligible for reimbursement through your HRA.
- Funded by the University only. You cannot contribute to your HRA.
- Ashford University contributes the entire annual amount at the beginning of the plan year or when first covered for new hires).
- Rollovers are limited to $1,000/individual and $2,000/family.
- If you separate from employment or unenroll from the HRA plan, your balance is no longer available to pay for new claims and will be forfeited.
- With AutoPay, Cigna automatically pays the doctor from your available HRA funds.
Learn more by visiting the Heath Reimbursement Account (HRA) section at Cigna.
How does the Health Savings Account (HSA) work? Direct Link
- An account that you can use towards your qualifying medical, dental and vision expenses.
- With AutoPay, Cigna automatically pays the doctor from your available HSA funds.
- Both you and your employer can contribute to your HSA not to exceed the annual IRS limits:
- For 2020, the maximum combined contribution is $3,550/individual and $7,100/family
- Catch-up contribution for age 55+ is $1,000
- Ashford University contributes on a quarterly basis in the months of: July, October, January, and April
- This is an actual bank account opened in your name and works like a true savings account.
- Rollovers are unlimited.
- If you separate from employment or unenroll from the HSA plan, your balance stays in tact until all funds have been exhausted.
- Offers triple tax savings:
- Contributions are federally tax free (and for most states as well).
- Earnings on any investments within the HSA are not taxed.
- Funds can be used on qualified healthcare expense tax free.
- Can invest in stocks, bonds, mutual funds, etc. once you have an account balance of at least $1,000.
- HSA Bank allows you to invest your funds in multiple self-direct investment options.
- Additional retirement savings opportunity.
- After age 65, funds can be withdrawn for any purpose without penalty, but may be subjected to income tax if not used for qualified healthcare expenses.
Learn more by visiting the Health Savings Account FAQs section at HSA Bank.