{"id":51318,"date":"2021-01-22T11:28:14","date_gmt":"2021-01-22T17:28:14","guid":{"rendered":"https:\/\/unicogroup.com\/?page_id=51318"},"modified":"2021-03-31T16:32:39","modified_gmt":"2021-03-31T21:32:39","slug":"fsa-and-hsa","status":"publish","type":"page","link":"https:\/\/unicogroup.com\/employee-benefits\/fsa-and-hsa\/","title":{"rendered":"FSA and HSA"},"content":{"rendered":"[vc_row][vc_column][vc_btn title=”Employee Benefits” style=”outline-custom” outline_custom_color=”#003a70″ outline_custom_hover_background=”#003a70″ outline_custom_hover_text=”#ffffff” size=”sm” i_icon_fontawesome=”fas fa-arrow-left” add_icon=”true” link=”url:https%3A%2F%2Funicogroup.com%2Femployee-benefits%2F|title:Employee%20Benefits”][\/vc_column][\/vc_row][vc_row content_placement=”middle”][vc_column width=”1\/2″][vc_column_text]\n

Comparing HSAs and FSAs<\/strong><\/span><\/h1>\n

Which approach is best?<\/p>\n

Employers are increasingly looking to consumer driven health plans to help soften the blow of continually rising health care costs. Depending on the model, consumer driven health plans typically include flexible spending accounts (FSAs) or health savings accounts (HSAs).<\/p>\n

Introducing consumerism into your health plan requires an evaluation of the benefits and disadvantages of HSAs and FSAs.[\/vc_column_text][\/vc_column][vc_column width=”1\/2″][vc_single_image image=”51056″ img_size=”600×450″ alignment=”center” style=”vc_box_rounded” css=”.vc_custom_1611338337601{margin-top: 0px !important;margin-right: 0px !important;margin-bottom: 0px !important;margin-left: 0px !important;padding-top: 0px !important;padding-right: 0px !important;padding-bottom: 0px !important;padding-left: 0px !important;}”][\/vc_column][\/vc_row][vc_row full_width=”stretch_row” bg_type=”bg_color” bg_color_value=”#f5f5f5″][vc_column][vc_column_text el_class=”table2″]\n

What\u2019s an HSA?<\/b><\/span><\/h2>\n

Health savings accounts (HSAs) are a growing trend in health care. An HSA is a tax-exempt savings account established for the purpose of paying for the qualified medical expenses of an individual and\/or his or her spouse and tax dependents.[\/vc_column_text][vc_btn title=”Learn More” style=”outline” color=”inverse” link=”url:https%3A%2F%2Funicogroup.com%2Femployee-benefits%2Ffsa-and-hsa%2Fhsa%2F|title:HSA%20%20%7C%20%20Health%20Savings%20Account”][\/vc_column][\/vc_row][vc_row full_width=”stretch_row”][vc_column][vc_column_text el_class=”table2″]\n

What’s an FSA?<\/b><\/span><\/h2>\n

A flexible spending account (FSA) is an account in an employee\u2019s name that reimburses the employee for qualified health care or dependent care expenses. It allows an employee to fund qualified expenses with pre-tax dollars deducted from the employee\u2019s paychecks.[\/vc_column_text][vc_btn title=”Learn More” style=”outline” color=”inverse” link=”url:https%3A%2F%2Funicogroup.com%2Femployee-benefits%2Ffsa-and-hsa%2Ffsa%2F|title:FSA%20%20%7C%20%20Flexible%20Spending%20Account”][\/vc_column][\/vc_row][vc_row full_width=”stretch_row” gap=”10″ bg_type=”bg_color” bg_color_value=”#eff5f7″][vc_column][vc_column_text]\n

Comparing HSAs and FSAs<\/strong><\/span><\/h2>\n[\/vc_column_text][vc_row_inner content_placement=”middle” css=”.vc_custom_1600192853520{background-color: #ffffff !important;border-radius: 10px !important;}” el_class=”grow”][vc_column_inner width=”1\/3″][vc_column_text css=”.vc_custom_1611338403395{margin-left: 12px !important;}”]\n
Type of account<\/strong><\/span><\/h5>\n[\/vc_column_text][\/vc_column_inner][vc_column_inner width=”1\/3″][vc_column_text]Health Savings Account<\/strong>[\/vc_column_text][\/vc_column_inner][vc_column_inner width=”1\/3″ offset=”vc_hidden-sm vc_hidden-xs”][vc_column_text]Health Flexible Spending Account<\/strong>[\/vc_column_text][\/vc_column_inner][\/vc_row_inner][vc_row_inner content_placement=”middle” css=”.vc_custom_1600192853520{background-color: #ffffff !important;border-radius: 10px !important;}” el_class=”grow”][vc_column_inner width=”1\/3″][vc_column_text css=”.vc_custom_1611338412392{margin-left: 12px !important;}”]\n
Who owns the account?<\/strong><\/span><\/h5>\n[\/vc_column_text][\/vc_column_inner][vc_column_inner width=”1\/3″][vc_column_text]HSA:\u00a0<\/strong>Individual\/employee[\/vc_column_text][\/vc_column_inner][vc_column_inner width=”1\/3″ offset=”vc_hidden-sm vc_hidden-xs”][vc_column_text]FSA:\u00a0<\/strong>Employer[\/vc_column_text][\/vc_column_inner][\/vc_row_inner][vc_row_inner content_placement=”middle” css=”.vc_custom_1600192853520{background-color: #ffffff !important;border-radius: 10px !important;}” el_class=”grow”][vc_column_inner width=”1\/3″][vc_column_text css=”.vc_custom_1611338445716{margin-left: 12px !important;}”]\n
Who may fund the account?<\/strong><\/span><\/h5>\n[\/vc_column_text][\/vc_column_inner][vc_column_inner width=”1\/3″][vc_column_text]HSA: <\/strong>Anyone can make contributions to an individual\u2019s HSA, including employer and\/or employee.[\/vc_column_text][\/vc_column_inner][vc_column_inner width=”1\/3″ offset=”vc_hidden-sm vc_hidden-xs”][vc_column_text]FSA:\u00a0<\/strong>Employer and\/or employee[\/vc_column_text][\/vc_column_inner][\/vc_row_inner][vc_row_inner content_placement=”middle” css=”.vc_custom_1600192853520{background-color: #ffffff !important;border-radius: 10px !important;}” el_class=”grow”][vc_column_inner width=”1\/3″][vc_column_text css=”.vc_custom_1611338462917{margin-left: 12px !important;}”]\n
What plans must be offered with the account?<\/strong><\/span><\/h5>\n[\/vc_column_text][\/vc_column_inner][vc_column_inner width=”1\/3″][vc_column_text]HSA: <\/strong>A\u00a0high deductible health plan (HDHP) that satisfies minimum annual deductible and maximum annual out-of-pocket expense requirements.[\/vc_column_text][\/vc_column_inner][vc_column_inner width=”1\/3″ offset=”vc_hidden-sm vc_hidden-xs”][vc_column_text]FSA: <\/strong>Most Health FSAs must qualify as excepted benefits to satisfy ACA reforms. To qualify as an excepted benefit, the FSA must meet a maximum benefit requirement and other group health plan coverage must be offered by the employer.[\/vc_column_text][\/vc_column_inner][\/vc_row_inner][vc_row_inner content_placement=”middle” css=”.vc_custom_1600192853520{background-color: #ffffff !important;border-radius: 10px !important;}” el_class=”grow”][vc_column_inner width=”1\/3″][vc_column_text css=”.vc_custom_1611338473613{margin-left: 12px !important;}”]\n
Can unused funds be rolled over from year to year?<\/strong><\/span><\/h5>\n[\/vc_column_text][\/vc_column_inner][vc_column_inner width=”1\/3″][vc_column_text]HSA: <\/strong>Yes[\/vc_column_text][\/vc_column_inner][vc_column_inner width=”1\/3″ offset=”vc_hidden-sm vc_hidden-xs”][vc_column_text]FSA: <\/strong>No, with two exceptions. A health FSA may include a grace period of 2-1\/2 months after end of plan year or it may allow employees to carry over up to $550 ($500 for 2019 plan years) in unused funds into the next plan year.[\/vc_column_text][\/vc_column_inner][\/vc_row_inner][vc_row_inner content_placement=”middle” css=”.vc_custom_1600192853520{background-color: #ffffff !important;border-radius: 10px !important;}” el_class=”grow”][vc_column_inner width=”1\/3″][vc_column_text css=”.vc_custom_1611338483261{margin-left: 12px !important;}”]\n
What expenses are eligible for reimbursement?<\/strong><\/span><\/h5>\n[\/vc_column_text][\/vc_column_inner][vc_column_inner width=”1\/3″][vc_column_text]HSA: <\/strong>Section 213(d) medical expenses, including:<\/p>\n
    \n
  • COBRA premiums<\/li>\n
  • QLTC premiums<\/li>\n
  • Health premiums while receiving unemployment benefits<\/li>\n
  • If Medicare eligible due to age, health insurance premiums except medical supplement policies<\/li>\n<\/ul>\n[\/vc_column_text][\/vc_column_inner][vc_column_inner width=”1\/3″ offset=”vc_hidden-sm vc_hidden-xs”][vc_column_text]FSA: <\/strong>Section 213(d) medical expenses<\/p>\n

    Expenses for insurance premiums are not reimbursable.<\/p>\n

    Employer can define \u201celigible medical expenses\u201d[\/vc_column_text][\/vc_column_inner][\/vc_row_inner][vc_row_inner content_placement=”middle” css=”.vc_custom_1600192853520{background-color: #ffffff !important;border-radius: 10px !important;}” el_class=”grow”][vc_column_inner width=”1\/3″][vc_column_text css=”.vc_custom_1611338496267{margin-left: 12px !important;}”]\n

    May the account reimburse non-medical expenses?<\/strong><\/span><\/h5>\n[\/vc_column_text][\/vc_column_inner][vc_column_inner width=”1\/3″][vc_column_text]HSA: <\/strong>Yes, but taxed as income and 20% penalty (no penalty if distributed after death, disability, or age 65)[\/vc_column_text][\/vc_column_inner][vc_column_inner width=”1\/3″ offset=”vc_hidden-sm vc_hidden-xs”][vc_column_text]FSA: <\/strong>No[\/vc_column_text][\/vc_column_inner][\/vc_row_inner][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]\n

    Related Insights<\/strong><\/span><\/h2>\n[\/vc_column_text][vc_basic_grid post_type=”post” max_items=”3″ item=”49338″ grid_id=”vc_gid:1617225976690-ef7e77f5-baa5-3″ taxonomies=”242, 278, 127″][\/vc_column][\/vc_row]\n","protected":false},"excerpt":{"rendered":"

    [vc_row][vc_column][vc_btn title=”Employee Benefits” style=”outline-custom” outline_custom_color=”#003a70″ outline_custom_hover_background=”#003a70″ outline_custom_hover_text=”#ffffff” size=”sm” i_icon_fontawesome=”fas fa-arrow-left” add_icon=”true” link=”url:https%3A%2F%2Funicogroup.com%2Femployee-benefits%2F|title:Employee%20Benefits”][\/vc_column][\/vc_row][vc_row content_placement=”middle”][vc_column width=”1\/2″][vc_column_text] Comparing HSAs and FSAs Which approach is best? Employers are increasingly looking to consumer driven health plans to help soften the blow of continually rising health care costs. Depending on the model, consumer driven health plans typically include flexible spending accounts (FSAs) or health savings accounts (HSAs). Introducing consumerism into your health plan requires an evaluation of the benefits and disadvantages of HSAs and FSAs.[\/vc_column_text][\/vc_column][vc_column width=”1\/2″][vc_single_image image=”51056″ img_size=”600×450″ alignment=”center” style=”vc_box_rounded” css=”.vc_custom_1611338337601{margin-top: 0px !important;margin-right: 0px !important;margin-bottom: 0px !important;margin-left: 0px !important;padding-top: 0px !important;padding-right: 0px !important;padding-bottom: 0px !important;padding-left: 0px !important;}”][\/vc_column][\/vc_row][vc_row full_width=”stretch_row” bg_type=”bg_color” bg_color_value=”#f5f5f5″][vc_column][vc_column_text el_class=”table2″] What\u2019s an HSA? Health savings accounts (HSAs) are a growing trend in health care. An HSA is a tax-exempt savings account established for the purpose of paying for the qualified medical expenses of an individual and\/or his or her spouse and tax dependents.[\/vc_column_text][vc_btn title=”Learn More” style=”outline” color=”inverse” link=”url:https%3A%2F%2Funicogroup.com%2Femployee-benefits%2Ffsa-and-hsa%2Fhsa%2F|title:HSA%20%20%7C%20%20Health%20Savings%20Account”][\/vc_column][\/vc_row][vc_row full_width=”stretch_row”][vc_column][vc_column_text el_class=”table2″] What’s an FSA? A flexible [\u2026]<\/span><\/p>\n","protected":false},"author":20,"featured_media":51056,"parent":14457,"menu_order":0,"comment_status":"closed","ping_status":"open","template":"","meta":{"footnotes":""},"class_list":["post-51318","page","type-page","status-publish","has-post-thumbnail","hentry"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/unicogroup.com\/wp-json\/wp\/v2\/pages\/51318","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/unicogroup.com\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/unicogroup.com\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/unicogroup.com\/wp-json\/wp\/v2\/users\/20"}],"replies":[{"embeddable":true,"href":"https:\/\/unicogroup.com\/wp-json\/wp\/v2\/comments?post=51318"}],"version-history":[{"count":0,"href":"https:\/\/unicogroup.com\/wp-json\/wp\/v2\/pages\/51318\/revisions"}],"up":[{"embeddable":true,"href":"https:\/\/unicogroup.com\/wp-json\/wp\/v2\/pages\/14457"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/unicogroup.com\/wp-json\/wp\/v2\/media\/51056"}],"wp:attachment":[{"href":"https:\/\/unicogroup.com\/wp-json\/wp\/v2\/media?parent=51318"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}