Money & Protection

Health Savings Account

Overview

A Health Savings Account (HSA) is a tax-advantaged account that helps you save money on health care expenses. It’s available if you enroll in one of AEO’s high deductible medical plans: Cigna HSA Plan, Cigna Economy HSA Plan or Kaiser Permanente High HDHP or Low HDHP.*

*You must meet all eligibility requirements for the HSA. No one can claim you as a dependent on their taxes, you can’t be enrolled in Medicare or Tricare and you can’t be enrolled in or covered by another persons’s general purpose Health Care Flexible Spending Account (FSA) or health coverage.

How It Works

1

AEO opens your account

When you enroll in a High Deductible Plan, AEO automatically opens your HSA. You’ll receive an HSA debit card that you need to activate to receive your HSA contributions from AEO.
2

AEO adds money to your account

AEO will add money within four weeks of your enrollment. You’ll receive the full amount for the year up front. This amount is prorated for new hires.
3

Add money of your own

Decide how much (if any) you want to contribute, up to IRS limits. Your contributions are taken out of your paycheck before taxes. You can change your contributions any time through the Benefitfocus portal.
4

You pay for health expenses

HSA dollars can be used anytime — now or down the road. When you have an eligible expense, you can pay for it from your HSA with no taxes taken out. Make sure you keep your receipts in case you need to verify a purchase. You must have the funds available in your HSA before you can use them.
5

You can invest your HSA funds

Once your HSA balance reaches $2,000, you can invest your funds in a wide variety of options. There is no tax on HSA interest or investment growth. There are fees for investments or trades.

Who Manages the Account?

Cigna plans: The HSA is managed by HSA Bank. Access your account through your myCigna.com account or mobile app.

Kaiser Permanente plans: The HSA is managed by Wex, Inc. Access your account at kp.org/healthpayment or the KP Balance Tracker app.

Contributions

AEO Contributions

Cigna HSA Plan or Kaiser Permanente High HDHP: AEO adds $500 for individual coverage or $1,000 for family coverage.

Cigna Economy HSA Plan or Kaiser Permanente Low HDHP: AEO adds $250 for individual coverage or $500 for family coverage.

Your Contributions

You can contribute up to $4,300 for individual coverage or $8,550 for family coverage. AEO’s contributions count toward this annual maximum.

If you’ll be age 55 by December 31, 2025, you can contribute an additional $1,000.

AEO’s Contributions

AEO’s HSA contributions are pro-rated, based on when you enroll in the medical plan.

	COVERAGE LEVEL	Q1	Q2	Q3	Q4
Cigna HSA or Kaiser Permanente High HDHP	Individual coverage	$500.00	$375.00	$250.00	$125.00
Cigna HSA or Kaiser Permanente High HDHP	Family Coverage	$1,000.00	$750.00	$500.00	$250.00
Cigna Economy HSA or Kaiser Permanente Low HDHP	Individual Coverage	$250.00	$187.50	$125.00	$62.50
Cigna Economy HSA or Kaiser Permanente Low HDHP	Family Coverage	$500.00	$375.00	$250.00	$125.00

Eligible Expenses

Eligible expenses include:

Medical and dental deductibles, copays and coinsurance
Vision care, such as eye exams, glasses and contacts
Prescription drugs
Over-the-counter medications and medical supplies (like bandages, diabetic supplies and contact lens solution)

For a complete list of eligible expenses, visit irs.gov/publications/p502.

Whose Expenses Are Eligible?

You can use your HSA to pay for eligible expenses for you, your spouse and your tax dependents (including your children up to age 19, or age 24 if a full-time student), even if they’re not covered under your AEO medical plan.

Note that by IRS rules, expenses for same-sex domestic partners are only eligible if they’re considered your tax dependent.

Fast Facts

Keep these things in mind.

TAX ADVANTAGES X 3

Pre-tax savings
Tax-free earnings
Tax-free withdrawals for eligible expenses

Two Ways to Pay

Debit card — Activate the debit card that you’ll receive in the mail.
Pay out of pocket — Fill out a reimbursement form.

It’s Always Yours

Any money left in your HSA rolls over from year to year. Plus, you can take it with you if you leave AEO.

Non-HeaLTH CARE EXPENSES ARE TAXABLE

Any money you spend on ineligible expenses is taxable and you may have to pay a 20% tax penalty.

Keep Your Receipts!

In case the IRS asks you to prove that an expense is eligible for reimbursement, keep copies of your bills and receipts.

Name a Beneficiary

You’ll need to name a beneficiary for your HSA on optumbank.com. If you die, your beneficiary will either inherit the account as an HSA or receive the funds.

FAQs

Do I get an HSA if I enroll in a PPO or HRA plan?

No. Due to IRS regulations, the HSA is only available if you enroll in an HSA plan. If you enroll in another medical plan, you can take advantage of the tax-advantaged Health Care Flexible Savings Account (FSA).

Does my HSA election roll over?

No. You must re-elect the HSA every year to receive AEO’s contribution and make your own contributions.

Does the money in my HSA account roll over?

Yes. Unlike an FSA, the HSA has no use-it-or-lose-it rule.

How much does AEO contribute to the HSA?

Cigna HSA Plan or Kaiser Permanente High HDHP: AEO contributes $500 for individual coverage or $1,000 for family coverage.
Cigna Economy HSA Plan or Kaiser Permanente Low HDHP: AEO contributes $250 for individual coverage or $500 for family coverage.

Looking for a Comparison Between HSAs, HRAs, and FSAs?

We’ve got you covered.

View the HSA, HRA, and FSA Comparison Chart.

Learn MOre

myCigna.com

Cigna Plans

kp.org/healthpayment

Kaiser Permanente plans