Cigna offering health savings accounts

Cigna HealthCare, one of the largest insurers operating in the Triad, said it would begin offering its health savings account health insurance plan to North Carolina companies with 51 to 200 employees.



Previously the company had only made the plan available to larger employers.



Health savings accounts, or HSAs, are tax-exempt investment accounts whose proceeds can be used to pay medical bills. In HSA plans, such as Cigna's, the investment account is typically paired with a high-deductible insurance plan.



The plans are designed to give consumers an incentive to spend carefully on health care and, HSA supporters say, encouraging people to spend less and therefore controlling health care expenses. Investment balances in the accounts can build up over time, rolling over year to year, giving employees an incentive to save.



In addition, workers can take the HSAs with them when they leave a job.



Nonetheless, the high deductibles, typically $1,000 or more for individuals and up to $5,000 for a family, can sometimes leave workers with steep balances to pay before they've accumulated enough money in the HSA to pay for them. Employers can contribute to the HSAs, but aren't required to.