Health Savings Account (HSA) Frequently Asked Questions

What is an HSA?

It is a High Deductible Health Plan (HDHP) with a tax-free Health Savings Account (HSA) to which the employee and employer can contribute. An HSA is similar to a regular savings account, but it is tax free as long as all funds are used for qualified medical expenses.

Why is Brenau University offering a HSA plan?

Many employers offer High Deductible Health Plans (HDHPs) to control premium costs and then pair this coverage with a Health Savings Account (HSA) to help employees with their health care expenses.

What is the benefit of having a HDHP?

The goal is for you to become better stewards of your healthcare costs. Understanding the cost of healthcare services will help you be more knowledgeable healthcare consumer. You will see the cost of appointments, labs, prescriptions, imaging which allows you to research options available to you.

Why should I open an HSA?

An HSA give you a triple tax break:

  • Your contributions to the HSA account are sheltered from income tax
  • The money in your HSA account grows tax-deferred
  • The money in your HSA account can be withdrawn tax-free for eligible medical, dental and vision expenses
  • Your HSA account can even serve as an extra retirement-savings fund

Will Brenau contribute to my HSA account?

Brenau will contribute $750 for individual coverage and $1,500 for family coverage. These amounts will be placed into your account monthly which is $62.50 for individual coverage and $125.00 for family coverage.We aim to deepen each employee’s daily experiences at work, home and beyond through the promotion of physical activity, healthy eating, personal wellness and living life to the fullest.

Can I contribute to an HSA after age 65?

You can withdraw the HSA money tax-free for medical expenses at any age, but you can no longer contribute to an HSA after you enroll in Medicare. An individual who is entitled to Medicare benefits is not eligible for HSA contributions. To be entitled to Medicare benefits, an individual must be both eligible AND enrolled. Eligibility for Medicare benefits does not make an individual ineligible for HSA contribution.

What happens if I die before using up all the funds in my HSA?

Just like an Individual Retirement Account (IRA), the HSA is an inheritable account.

When can I start to use my HSA funds?

Once your account is open, a deposit has been made to your account and funds are available, you can start using your HSA (after your first payroll in January).

How much will I pay when I go to the doctor now?

Preventive care is covered at 100%. If you see a doctor or specialist for something over than preventive treatment, you are responsible to pay for the amount Cigna has contracted to pay your doctor, typically a discounted rate, until your deductible is met. You can use your HSA for this expense. It’s best to have your doctor’s office put the charge through to your insurance, so that you will receive credit toward your deductible and you know exactly what to pay.

Will I have to pay my entire deductible before my physician will treat me?

It will best to call your physician prior to treatment and let them know you are covered under an HSA plan and discuss how billing and payments are handled. Some doctors may require that you pay up front, but most will bill your insurance, and then bill you once the claim has been processed. Make sure you don’t pay more than your portion shown on the explanation of benefits (EOB) you receive from Cigna.

What happens if I go to the emergency room? Will I have to pay my full deductible before they see me?

The hospital will most likely try to collect a portion of the deductible at time of service. You can explain that you are covered under an HSA plan and request that you are billed for services rendered.

How do I pay for my prescriptions?

Preventive medications are covered without a deductible. Other medications are subject to your deductible. Once you have paid your deductible in full, the pharmacy copays will apply based on the applicable medication tier.

How do I build an HSA balance?

The first and most important thing to do is contribute to your HSA. Regular contributions to your account help ensure the money will be there when you need it-remember you can save $25 or more for every $100 you contribute. The HSA is your medical expense savings tool for this year and the future.

How do I use my HSA for medical services?

First, be sure your doctor, healthcare provider, or pharmacy has your up-to-date medical, dental or vision insurance information before you receive care. This saves you money by ensuring you receive insurance company discounts on services and have charges applied to your deductible.

How do I pay a medical bill with my HSA?

Step 1: When you receive a bill from your medical provider, compare it with your EOB. If you find a discrepancy, contact Cigna or medical provider to resolve any issues before paying the bill.

Step 2: Once you are confident that your bill is correct, the most convenient option is to pay with your HSA debit card by following the credit card payment instructions provided on the bill.

Step 3: Save your itemized receipt of the approved transaction and the EOB for your records.

How do I use my HSA to pay for services or prescriptions at the point of sale?

Pharmacies and some medical providers will ask you to pay for expenses when you pick up your prescriptions or receive care. Remember, be sure the provider has your current medical coverage information, and use your HSA debit card to pay the provider. If asked to pay at the time of service for medical expenses, it is still important to review your EOB statement to make sure you have not been overcharged.

How do I use my HSA debit card at the doctor’s office or pharmacy?

Step 1: Present your HSA debit card for payment.

Step 2: Pay the total amount owed with your HSA debit card (if prompted, please select “Credit” and sign for the purchase.

Step 3: Funds will be deducted automatically from your HSA.

Step 4: Remember to save your itemized receipt.

What if my doctor or pharmacy does not accept my HSA debit card?

Does my HSA cover dependents, even if they are not covered by my plan?

Yes. Qualified medical expenses include unreimbursed medical expenses of the accountholder, his or her spouse or dependents.

What if my medical expenses do not reach my deductible? What happens to the money in my HSA that I do not spend on medical bills?

The money is your HSA is all yours! The less money you spend on medical, dental or vision expenses, the more will remain in your HSA, and, again, that money is always yours. It will earn bank interest. Additionally, with a minimum of $2,000, you can invest all of or sum of your account funds. More information is available at myCigna.com

How do I check my HSA balance?

Real-time HSA balances are displayed on the Review My Coverage section of myCinga.com and it is also available through the mobile app.

Can I access my HSA online?

Yes. You can access your HSA balances, account updates, transactions on myCigna.com and the mobile app.

What if the amount owed is higher than my available account balance?

Tell the person taking your payment that you want to pay for the amount up to your available balance using your HSA debit card and use another form of payment for the remainder of the balance owed. Sign for both purchases and remember to keep both receipts. Once you have additional funds in your HSA account, you can reimburse yourself.

What if I am buying non-healthcare items at the pharmacy?

Pay for the items that are qualified medical expenses with your HSA debit card. Pay for items that are not qualified medical expenses with another form of payment.

What is a “qualified medical expense”?

Some examples of IRS approved expenses are:

  • Physician visits
  • Prescriptions
  • Vaccines
  • Dental treatment
  • Laboratory fees
  • Hearing aid/batteries
  • Operations/surgery

You can find a complete list of eligible and ineligible HSA expenses at

What happens if I want to use the money for non-medical expenses?

Don’t do it. If you use the HSA money in your account for non-medical expenses before age 65, you will be subject to a 20% penalty plus taxes on the withdrawals. After age 65, the penalty goes away but you still pay taxes if the withdrawals are not for eligible medical expenses.

What are some tips to help me save money?

  • If you need to take a prescription, remember to ask for a generic alternative.
  • Ask your doctor questions about the medical necessity and cost of procedures and service.
  • Tell your provider you have a high-deductible health plan. Knowing that you are paying out of pocket may help you negotiate lower charges.
  • Only visit the ER in actual emergency situations. Remember that your provider’s office, urgent care and comprehensive care clinic are appropriate options for conditions that are not life-threatening-and they can be a lot more cost-effective.
  • Annual physicals are covered at 100% by your health plan-which means no cost to you.
  • Consider contacting pharmaceutical companies directly to negotiate deals on high-cost prescriptions. Often, these companies are willing to work with people who are struggling financially.

How do I know how much I need contribute to my HSA?

Please refer to the enclosed Health Savings Account Annual Expense Estimate Worksheet to help you determine your anticipated expenses for the upcoming year.