Build a nest egg for your healthcare. The EmpowerSM HSA is a high-deductible health plan (HDHP) that works with a health savings account (HSA) that you establish with a bank or other financial institution.
You save money in your HSA to use for your healthcare expenses. Contributions you make to your HSA are taken from your pay before income taxes are withheld, so your taxable income is reduced! The money you use from the account is not taxed as long as it is used for eligible medical expenses. - Freedom to choose your providers
- Tax-free savings account
- Tools and resources to help you make the right decisions
You can contribute a certain amount to your HSA each year up to IRS limits. These limits change annually and are available online at the United States Treasury Department's website. See the information you received from your employer.
How does the HSA work?
The HSA can be used to pay for eligible healthcare expenses incurred by you and your dependents.
What is a deductible?
Consider your automobile insurance. If you get a ding on your fender, you first have to pay a deductible before the insurance company will pay for the rest of the repair. If the damage to your car was $800 and your deductible is $250, you pay the $250 first, then the insurance company will pay the remaining $550 to complete the repairs.
The HDHP follows the same idea. If you have medical expenses, you pay first, and then the health plan will kick in to cover any expenses beyond the deductible (see your summary of benefits for details).
Why do I have to go to a bank or financial institution to set up the HSA?
The HSA is an actual account in which you deposit money to be used for your healthcare expenses. Many banks and credit unions offer HSAs, as do investment and brokerage firms. Your employer may have a preferred HSA option already established for you, or you can choose any financial institution you want.
If you cannot decide, HealthPartners has an arrangement with Wells Fargo for HSAs. Please visit Wells Fargo Health Savings Accounts or call 866-608-2074 for more information.
You may deposit money into your HSA in lump sums and your employer may allow payroll deductions. Your employer may also deposit money into your HSA. The amount you deposit is limited by the IRS annually.
It's your choice
You do not even have to use your HSA you can save it all for your retirement or other future healthcare needs and pay for current medical expenses with cash on hand. Your account grows tax-free.
How does the high-deductible health plan work?
Preventive care services are covered at 100%.
You can visit any doctor, specialist or clinic in our large network.
If you meet your deductible, your HDHP may require you to pay a portion of your medical bills (called coinsurance). See the information you received from your employer for details.
To protect you against costly medical expenses, your HDHP has an annual out-of-pocket maximum. If you face extreme medical costs, you can rest easy knowing that you will never have to pay more than the out-of-pocket maximum during the year for expenses covered under your HDHP. See the information you received from your employer for details.
EmpowerSM HSA Plan (with tiered benefit levels)
Benefit levels help you save money and get the best care
It's a fact not all providers are the same. Studies show that medical providers and clinics can vary by cost and the quality of their care.
The EmpowerSM HSA Plan encourages and rewards you for seeing the best providers. Here's how:
- Providers are analyzed and assigned to benefit levels
- The best performing providers (those who deliver the most effective care at the best overall cost) are assigned to benefit level 1.
- All other providers are assigned to benefit level 2.
- You may see any provider you want. However, your out-of-pocket cost will be lower if you choose a benefit level 1 provider over a benefit level 2 provider.
No matter where you live, work or travel in the United States, you have access to high-quality providers through CIGNA HealthCare's vast national network.
