Health Savings Account (HSA)

What is an HSA?

An HSA, or Health Savings Account, is a special tax-advantaged account used with the Cigna High Deductible Health Plan (HDHP). Adelphi will fund this account for both individual and family coverage options.

An HSA is a great way to help stretch your budget because you pay for eligible health care expenses with money that is not considered wages—so it is not subject to income taxes. This account allows you and your family to pay for various qualified healthcare expenses.

You can also elect to contribute your own pre-tax contributions to this account. It earns interest tax-free, and funds are not taxed when withdrawn for qualified health care expenses. There are annual limits set by federal regulations on how much you can contribute, but your balances carry over year to year, earn tax-deferred interest, and belong to you even if you change employers.

HSAs are owned by the employee and are therefore portable, with contributions that do not expire.

Key Features of the Health Savings Account

Adelphi University offers contributions to your Health Savings Account (HSA) based on the coverage you select and the HDHP Cigna medical plan you choose. If you opt for Individual coverage, the contribution is $875 annually; if you choose EE+1 or Family coverage, it’s $1,750.

You can also add your own pre-tax contributions to your HSA, up to the annual maximums.

To cover eligible healthcare expenses, you’ll use a debit card linked to your HSA, with funds automatically deducted.

However, there are some IRS rules to consider:

1. You must be enrolled in a high-deductible health plan (HDHP) at the start of each month
2. You can’t be enrolled in Medicare
3. You can’t be claimed as a dependent on someone else’s tax return

If you’re planning to apply for Medicare, consult your tax advisor about when to stop contributing to your HSA to avoid tax penalties.

Adelphi splits its annual contribution into two halves: the first half is available at the start of the plan year, and the other half is funded on July 1.

Eligibility for HSA Coverage

If you are covered by Adelphi’s High Deductible Health Plan (HDHP) with Cigna, you can use the HSA to pay eligible health care expenses for yourself, your spouse and your dependents.

Eligible Medical Expenses

The HSA is used to pay for eligible healthcare expenses not paid by insurance. Sample eligible expenses include:

• Deductibles (amount that must paid before claims are covered), and coinsurance (shared payment of the claim), and Copayments (office, specialists, and ER visits)
• Dental care
• Eye exams, glasses and contacts
• Laser eye surgery
• Orthodontia
• Over-the-counter medical supplies

Enrollment Process

You are automatically enrolled in the HSA account if you are covered by Adelphi’s High Deductible Health Plan (HDHP) with Cigna. This benefit is not available to employees covered by EmblemHealth or Cigna PPO.

Employees can also elect to contribute their own pre-tax contributions to the Health Saving Account (HSA) up to the annual maximum contribution:

• 2024 Individual maximum contribution: $3,275 
• 2024 EE+1 or Family maximum contribution: $6,550 
• Employees who are 55 years of age or older can contribute an additional $1,000 to their HSA account

Getting Started with Your HSA

To start maximizing the benefits of your Health Savings Account (HSA), just follow these four easy steps to establish online access:

1. Create your online account: Log in to your Cigna account and go to the “Spending Accounts” section on the main page. Under your HSA balance, select “Manage HSA” to access the HSA Bank Customer Website.
2. Designate a beneficiary: Navigate to the “Accounts” section. Under “Profile”, select “Profile Summary” to provide information about your chosen beneficiary, including their social security number and birth date.
3. Add your spouse and/or dependents as authorized signers: While under the “Accounts” section, you can access the HSA Authorized Signer Form on the “Profile Summary” page.
4. Request additional debit cards (if needed): Finally, under the “Accounts” section, you can request an additional Health Benefits Debit Card on the “Profile Summary” page.