Health Savings Account (HSA)

Triple Tax Advantage

Tax-free contributions lower your taxable income:

1. Tax-Free Contributions
   Money goes into your HSA before taxes are taken out, reducing your taxable income.
2. Tax-Free Growth
   Once your account balance exceeds $1,000, you can invest your HSA funds. Any earnings or interest grow completely tax-free.
3. Tax-Free Withdrawals
   When you use HSA funds for qualified medical expenses, you never pay taxes on withdrawals—not now, not ever.

Additional Benefits

1. Reduced Out-of-Pocket Costs:
   Use your pre-tax dollars to help offset any qualifying out-of-pocket medical, prescription, dental, and vision expenses you incur.
2. Flexible Annual Election:
   You can change the amount of your HSA contribution at any time during the year. You do not have to have a qualified life event to make changes.
3. Roll-Over:
   Unused funds roll over year after year. You never lose these funds—even if you change plans or leave ExamWorks. This money is yours to keep forever.
4. Investment Option for Long-Term Growth:
   Once the account exceeds $1,000, funds can be invested and those who start saving earlier can reap the rewards long into the future as the account builds with tax-free growth.
5. Opportunity for Long-Term Savings:
   Save unused HSA funds year to year to reduce future out-of-pocket expenses. You can also use HSA dollars when you retire or leave the company.
6. Penalty-Free Withdrawals After Age 65:
   After age 65, you can use HSA dollars without penalty for non-qualified medical expenses (though regular income tax will apply).

Qualified expenses for you, your spouse, and eligible dependents—even if they are not covered under your medical plan—including:

• Deductibles, copays, and coinsurance
  
• Prescription medications
  
• Dental and vision care
  
• Mental health services
  
• Chiropractic care and physical therapy
  
• Medical equipment and supplies
  
• Over-the-counter (OTC) medications and menstrual products

For the full list of eligible expenses, see IRS Publication 502 or log in to mycigna.com.

You are eligible if you:

• You or your spouse are enrolled in a General Purpose Health Care FSA or an HRA
  
• You are covered under TRICARE, Medicaid, or Medicare
  
• You are claimed as a dependent on another person’s tax return

You are not eligible if:

• Are enrolled in a qualified High-Deductible Health Plan (HDHP) like Essential HSA or Enhanced HSA
  
• Are not covered by any non-HDHP (for example, a spouse’s traditional PPO)
  
• Are not enrolled in Medicare (Parts A, B, or D)
  
• Are not claimed as a dependent on someone else’s tax return

Yes—with a Limited Purpose FSA (LPFSA).

• Allowed: HSA + Dependent Care FSA + Limited Purpose FSA for dental and vision expenses only
  
• Not allowed: HSA + General Purpose Health Care FSA
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Rollovers or transfers from another HSA do not count toward your IRS annual limit.