Health Savings Account (HSA)

While you are enrolled in an HSA, you may enjoy several benefits:

• Rutherford County contributes funds to your HSA, regardless of whether or not you also choose to contribute additional funds.
• The contributions you make to your HSA are tax free.
• The interest or other earnings on the assets in your HSA are tax free.
• Distributions may be tax free if you pay qualified medical expenses.
• The contributions are not forfeited after a set period of time.
• Your HSA is "portable." It stays with you if you change employers or leave the work force.

For more information about the potential benefits of enrolling in an HSA, see the below linked resources or IRS Publication 969.

There are a few federal requirements to enroll in or receive Rutherford County's contributions to your HSA:

• You must be enrolled in a High Deductible Health Plan (HDHP)
• You cannot be covered under a non-compatible health plan, such as Tricare or Medicare
• You cannot be claimed as a dependent on someone else's tax return (other than your spouse's)

A few other important considerations:

• A married couple who has a combination of tax-advantaged accounts (HCFSA and HSA) could create a complicated tax situation. Speak with a tax advisor before enrolling if this situation applies to you.
• If you are or will be turning 65 in the next six months and plan to enroll in Medicare, please review Medicare.gov's guidelines on working past 65.
• A P.O. Box cannot be used as a mailing address to open an HSA account.

For additional information about eligibility, please see the guidelines linked below or IRS Publication 969.

The total annual contributions you receive from Rutherford County are respective to your enrolled HDHP tier: 

• $500 for Employee Only coverage
• $1,000 for Employee + Spouse, Employee + Child(ren), or Family Coverage

Rutherford County's contributions are made in equal amounts each payroll. If you enroll after the plan year begins, you will only receive contributions going forward—missed contributions will not be made up.

You must be employed, enrolled, and receiving a paycheck during the pay period to receive Rutherford County's employer contribution to your HSA.

Each year, the IRS determines the maximum contribution limits for those enrolled in an HSA. Your own pre-tax payroll contributions to your HSA, together with Rutherford County's employer contributions, can go up to but not exceed the established IRS limit.

For 2026, the total contribution limits are:

• $4,400 for Employee Only coverage
• $8,750 for Employee + Spouse, Employee + Child(ren), or Family Coverage

Age 55+ Catch Up Contribution: The IRS allows individuals aged 55 or older, who are not yet enrolled in Medicare, to contribute an additional $1,000 annually to their Health Savings Account (HSA) beyond the yearly maximum limit. This provision helps older employees increase their savings for qualified medical expenses and reduce taxable income as they near retirement.

Remember, you can change your HSA contribution at any point in the year, not just during annual enrollment.

You can change the amount you're contributing to your HSA at any time by emailing [email protected]. Please keep in mind that if you're requesting changes to your HSA contribution on the weeks payroll is running, your changes may not go into effect until the next paycheck.

You do not need to wait for annual enrollment to change your HSA contribution amount. This is the only benefit election you can make changes to during the year without a qualifying life event.

Your HSA funds become available within 5 business days of each payroll. You can check your HSA balance through the myCigna web portal or app.

You can use your HSA to pay for qualified health care expenses, such as copays, deductibles, prescriptions, over-the-counter medicines, and more for yourself, your spouse, and eligible dependents (see IRS Publication 969 for more information about who qualifies as an eligible dependent).

You can follow the links below for up-to-date lists of qualified expenses:

• HSA Bank - Qualified Healthcare Expenses Summary 
• Cigna - List of Eligible and Ineligible Expenses

It's important to keep a record of the expenses you pay with your HSA, in case HSA Bank asks you to prove that an expense was eligible for reimbursement from your account, or in case you are audited by the IRS. Examples of records you should keep include receipts, Explanations of Benefits (EOBs), medical diagnosis/physician diagnosis letters, and prescriptions.

HSA Bank's HSA Invest program allows you to invest the funds in your HSA. Since your HSA funds are yours to keep and carry over every year, even if you change jobs or retire, this opportunity lets you grow the funds in your account for future healthcare expenses or retirement. 

For more information about investing your HSA, see the information linked below or access your HSA Bank account via the myCigna web portal or app. 

To order a replacement HSA card, you will need to contact Cigna at 800-244-6224. 

Please allow 10-14 business days for your card to be delivered. Keep in mind that your card may be delivered in an unmarked envelope with no return address and can sometimes be mistaken for junk mail.

You may designate a beneficiary to receive your HSA assets in the event of your death. You can do so by logging into your HSA Bank account via the myCigna web portal or app. 

For more information, instructions, and to understand the importance of assigning a beneficiary, view the link below or visit the HSA Bank Help Center.

Cigna and HSA Bank partner to administer your HSA. You may create an account to view your transactions and balance by logging into your myCigna.com account. 

You may contact HSA Bank at 1-866-494-2111 or at the number on the back of your card, if available. Visit the HSA Bank website at www.hsabank.com for more information and educational resources.

If you need to make a change to your contribution amount, please email the Insurance & Risk Management department at [email protected].