Health Financial Accounts
Depending on the medical plan you choose, you'll be automatically paired with a different health financial account.
Get to Know Your Options
|If you choose…||You’ll be paired with…|
|A PPO plan||A Health Savings Account (HSA)|
|An HMO plan||A Health Reimbursement Arrangement (HRA)|
Each account covers different expenses, and some let you contribute tax-free money, while others only allow Blue Cross to contribute, so be sure to know how they work before you enroll in your plan. If you know you’re going to have specific medical expenses, you may also want to consider adding a Flexible Spending Account (FSA).
Which Health Financial Account Is Right for You?
We recommend reviewing your claims for the last two years, then asking yourself the following questions:
- Do you currently have money in a flexible spending account that you need to spend before the end of the year?
- What are your expected medical expenses for this year?
- Do you have money remaining in your FSA that you can roll over to 2023?
Here are some tools and resources to get answers:
What Are the Differences?
|Health Savings Account (HSA)
Paired with the Blue Care® Elect Saver – Choice (PPO) Plan
|Health Reimbursement Arrangement (HRA)
Paired with the Network Blue® New England Deductible (HMO) Plan
|Flexible Spending Account (FSA)
For details on the health care, limited purpose and dependent care FSAs, see the medical plan pages
|How does it work?||Pre-tax dollars you contribute from your paycheck automatically go into an HSA that is used to pay out-of-pocket health care costs. Your employer has the option of contributing.||Your employer contributes tax-free funds to help you pay for health expenses.||Pre-tax dollars you contribute from your paycheck automatically go into an FSA that is used to pay out-of-pocket health care costs.|
|What can I use it for?||With HSA-eligible expenses, as defined by the Internal Revenue Service (IRS), including deductibles, prescription copays, dental and vision care, and more.||Out-of-pocket medical expenses your employer decides are eligible such as deductibles, and medical and prescription copays.||FSA-eligible expenses, including deductibles, prescriptions, copays, dental and vision care, and more|
|Why should I consider it?||This may be a smart choice whether you want to pay for health care expenses now, or want to save for down the road and into retirement.||You may want to take advantage of tax-free funds to help pay for your health care expenses.||This may be a wise choice if you know you'll have health care expenses this year and want to budget for them.|
|How much can I contribute to my account in 2022?||Up to $3,650 for a single HSA plan and $7,300 for a family plan.||Individual: $400
Individual +1: $800
|Up to $2,850.|
|What happens to my account if I leave Blue Cross?||The money is yours to keep and save for future expenses, even into retirement.||Your account is closed. You can file claims up to 90 days after your termination date for services received while you were working at Blue Cross.||Your account is closed. You can file claims up to 90 days after your termination date for services received while you were working at Blue Cross.|
|What are the tax benefits?||Tax-free contributions and withdrawals, tax-deferred growth.||Money contributed by your employer is tax-free to you.||Tax-free contributions.|
|What are other benefits?||Your savings build and earn tax-free interest (interest isn't tax-free for residents of NJ).
After age 65, you can withdraw HSA funds for any use without penalty.
|Your employer helps cover your expenses||You decide how much money to set aside in your FSA for the year.
Your full FSA balance is available to you at the start of your plan year.
|Do unused funds roll over at the end of a year?||Your account is closed. You can file claims up to 90 days after your termination date for services received while you were working at Blue Cross.||If you elect an FSA, your unused balance from 2021 will roll over to 2022. However, any unused balance in your FSA at the end of 2022 will not roll over.||Your unused balance will carry over into the next plan year, subject to IRS limits (current limit is $570).|
|Can funds be invested?||Yes||No||No|