FSA & HSA Explained
As a private practice we pride ourselves on being able to deliver expert level, compassionate care at a cost patients can afford. However, we understand that sometimes any amount of out-of-pocket cost can add financial stress.
Your health is worth investing in!
One of the ways we are able to help alleviate the financial burden of a cash pay practice is accepting HSA and FSA. An HSA or Health Savings Account or an FSA (Flexible Spending Account) are tax advantage accounts that are tax free!
Who qualifies?
HSAs are only available to patients participating in high-deductible health care plans, with $1,350 or more for singles and $2,700 or more for families. Self-employed persons can contribute to an HSA.
Conversely, employees with any kind of health insurance qualify for a health FSA (as long as it's offered by the employer). Self-employed patients unfortunately do not qualify for an FSA for healthcare expenses.
Spending Limitations?
HSAs you can help pay for co-pays, medical bills and vision expenses. Some say an FSA is like a line of credit, hence the name “flexible" spending account.
Does this money expire?
Funds in an HSA grow tax-free for years, and can even be stored in an investment fund. FSA on the other hand expires at the end of the year or "grace period." If you don't use it, you lose
Both plans are funded by the health care consumer's own money, sometimes with a bonus employer contribution, to fund health care expenses. According to a 2019 Forbes article, the maximum annual contribution allowed in an HSA is $3,500 for an individual and $7,000 for a family. The maximum amount an employee can save in a health FSA for is $2,700.
As we near open enrollment, consider your options when it comes to these types of financial tools. Reach out to your insurance provider and plan for your future health care expenses!
The information included in this article is not to be considered financial advice. Please contact your accountant and/or tax professional to make any decisions related to your personal financial circumstances.
About The Author
Dana Ramsey is a Certified Nurse Midwife and has spent the past 15 years helping women navigate their gynecology, pregnancy, postpartum, and menopausal challenges. Dana is dedicated to helping her patients overcome conditions impacting their ability to conceive and maintain a successful pregnancy.
