Health & Wellness

HSA & HRA

When you enroll in a Consumer Driven Health Plan (CDHP), you become eligible for a Health Savings Account (HSA). Here’s how an HSA works and how it can help you save. If you have questions, refer to IRS Publication 969 for a complete list of eligible expenses and HSA rules.

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You must be enrolled in a CDHP, not be covered by another plan (e.g., Health Care FSA, Medicare, or Tricare), and not be claimed as a dependent. Big 5 will match your HSA contributions (up to the cap) each pay period, to help fund your account! Contribute money before taxes to lower your taxable income. Contributions, interest, and earnings are tax-free. You will receive a debit card to conveniently pay for eligible medical, dental, and vision expenses. HSA funds roll over each year, and you own the account. You can even save your funds to use in retirement!

2027 Annual HSA Contributions

Coverage IRS Contribution Limit Company Contribution Employee Contribution Limit*
Individual $4,500 $250 $4,250
Family $9,000 $500 $8,500

*Employees age 55+ may contribute an additional $1,000 per year.

A Health Reimbursement Arrangement (HRA) is an employer-funded account paired with the Kaiser HMO plan to help you pay for out-of-pocket medical expenses. Big 5 contributions and reimbursements are tax-free.

What This Means For You

You’ll use your Big 5-funded HRA dollars to pay for eligible medical and prescription expenses that are subject to your deductible, before paying for them out of your own pocket.

  • The HRA is embedded in the Kaiser Plan. Enrollment is automatic, so there is nothing extra to sign up for.
  • Big 5 deposits $1,250 for individual coverage and $2,500 for family coverage directly into your HRA. Employees cannot contribute to the HRA.
  • The HRA is administered by HealthEquity. If you’re new to the HRA, you’ll receive an HRA debit card from HealthEquity.
  • HRA funds can be used to pay eligible medical and prescription expenses that are subject to your deductible under the Kaiser HMO plan. You may not use your HRA card for expenses that are not subject to your deductible.
  • Keep your receipts and Explanations of Benefits (EOBs). HealthEquity may request documentation to verify card purchases.
  • Unused HRA funds DO NOT roll over into the next year.
  • HRA funds belong to Big 5. If you leave the company or change plans, your remaining balance is forfeited.

FAQs

What happens if I’ve used all my HRA funds?

Once all your HRA funds have been used, you will be responsible for any medical expenses until your total deductible is satisfied. After reaching the deductible, you will be responsible for any applicable coinsurance or copayments up to the annual out-of-pocket maximum.

 

What happens if I’ve paid some expenses out-of-pocket?

You can submit a claim through HealthEquity with your receipt or EOB to be reimbursed for eligible expenses. The quickest and most efficient way to receive reimbursements is to set up direct deposit through HealthEquity’s member portal. Learn more here.

2027 Annual HRA Contributions

CoverageCompany Contribution
Individual$1,250
Family$2,500

Let's Talk HSAs

Questions?

Refer to irs.gov/forms-pubs/about-publication-969 for a complete list of eligible expenses and HSA rules

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DOCUMENTS

(HSA) Keep in Mind

  • You must be enrolled in a qualified CDHP.
  • You cannot be covered under another non-qualified health plan, including your spouse’s Health Care FSA.
  • You cannot be enrolled in Medicare or Tricare.
  • You cannot be claimed as a dependent on someone else’s tax return.

(HRA) Keep in Mind

  • Once you use all the funds in your HRA, you are responsible for meeting the deductible before the plan begins to pay benefits.
  • You cannot take the money with you if you leave your job.
  • Unused funds are only carried over into the following plan year if you continue your enrollment in the HDHP.
  • You have an option to contribute to a Health Care FSA to set aside your own pre-tax money in addition to the HRA funds you receive.