Learn About HSA/HRA Plans

Introducing HSA/HRA Plans | How BlueFund Plans Work

How BlueFund Plans Work

Select a topic, or simply scroll down the page:

1. Funding
2. Access to Funds
3. Flexible Spending Accounts (FSA)
4. Interest and Earnings on the Account Balance
5. CareFirst's Integrated CDH Solution

Funding

1. Health Reimbursement Arrangements (HRAs) are funded entirely by the employer, while Health Savings Accounts (HSAs) are funded by the employer, the employee or both.
2. Funding is generally replenished each year. The money can then be applied to the employee's deductible. All eligible health care costs prior to meeting the employee's deductible can be paid with funds.
3. Once the deductible is met, the BlueFund health plan will cover eligible expenses at the specified copay or coinsurance level up to the annual out-of-pocket maximum. Then the plan will cover all eligible expenses in full for the remainder of the plan year. Copayments and coinsurance amounts can also be paid from these funds.
4. If the employee depletes the funds during the plan year, they are then responsible for any remaining health care costs until they meet their deductible. This amount is sometimes called the "bridge amount."
5. Any balance remaining in an HSA at the end of the plan year will roll over to the following year to be combined with any new contributions, thus making health care costs even more affordable. HRA plans allow employers to choose whether balances roll over each year. 
6. Funds remaining in an HSA belong to the employee, and are portable if the employee retires or changes jobs. Unused funds in an HRA are generally forfeited, although the employer has the option to permit reimbursements for a period after termination.

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Access to Funds

If you choose our preferred bank¹ as your group's HSA trustee, your employees will receive a debit card to access their HSA funds at pharmacies and doctors' offices. They may also choose to access their funds using an online reimbursement² form or pay with HSA checks. If you choose an HRA, the deductible, copay and coinsurance amounts will automatically be reimbursed if there are funds available. For some accounts, debit cards are available with an HRA³.

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Flexible Spending Accounts (FSA)

FSAs can be offered with an HRA or HSA.

• With an HRA, you, the employer, can decide on the order of payment. Employees' health expenses may be reimbursed first from the FSA or the HRA. Claims automatically roll over to the FSA when the HRA is exhausted or vice versa.
• With an HSA, FSA reimbursements are limited to dental and vision spending only.

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Interest and Earnings on the Account Balance

If you choose our preferred bank as your group's HSA trustee, your employees' funds will be placed into an interest-bearing bank account. When their account meets a minimum balance, they have the option of investing their savings in a variety of available mutual funds.

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CareFirst's Integrated CDH Solution

Through CareFirst's HSA and HRA administrator³, we offer complete system integration of your BlueFund Plan. That means:

• A single source for information - Through our web site members have access to their fund account status, claims, and health and wellness information.
• Automated enrollment feeds between CareFirst and the medical fund administrator³, and
• Automated HRA claims rollover, as well as rollovers between your group's FSA and HRA.

¹ For local business, CareFirst's preferred bank is Mellon Bank. For national accounts, our preferred bank is PFPC.
² For national accounts only.
³ For local business, CareFirst's preferred administrator is FlexAmerica. For national accounts, our preferred administrator is WageWorks.