Health Savings Account (HSA)
HSAs work in combination with a "qualified" High Deductible Health Plan (HDHP). AURA's Consumer Driven Health Plan is a qualified HDHP. The HSA allows you to contribute funds on a pre-tax or tax-deductible basis, which you may use to pay for eligible medical expenses.
In 2016, AURA will contribute $300 for an individual or for a family, for employees who are eligible to contribute to a Health Savings Account (HSA). AURA contributions will be made on behalf of the employee to an account opened at HSA Bank. This employer contribution will be prorated for new hires and employees that are not enrolled in the plan the entire year.
- Available to eligible individuals enrolled in the CIGNA CDHP
- A health savings account can be funded with your tax-exempt dollars
- Covers expenses incurred by you or your eligible tax dependents not paid by insurance
- Qualified medical and prescription drug expenses
- Dental and vision expenses
- Find a complete listing of eligible expenses in IRS Publication 502 found on www.irs.gov
Before an employee elects to participate in an FSA or HSA he or she should be aware that while participation in these plans reduces the employee’s taxable income, it may also reduce other benefits. Benefits that are calculated using the employee’s income (for example, social security or retirement benefits) will in turn be reduced. Because FSA and HSA contributions reduce your taxable income, you save money in FICA taxes, as well as federal (and, in some cases, state) income taxes. However, FSA and HSA contributions also lower the earnings that are reported to the Social Security Administration for purposes of calculating your Social Security benefit. Therefore, your future Social Security benefits may be slightly reduced if you participate in an FSA or HSA.
Employees reaching retirement age should speak with their financial advisors for more information regarding retirement planning decisions.