An HSA is an individually owned benefits plan funded by you or the employee that lets your employees save on purchases of eligible expenses. The most significant determinant for which type of plan, FSA or HSA, is better for you is the type of health plan you have. First, let’s brush up on some basic health insurance terms. An easy, basic way to distinguish what each account is intended for is by focusing on what the letter “S” represents in each: savings and spending. HSA and Health Care FSA, your Health Care FSA will be “limited use” and can only be used to pay for qualified dental and vision expenses. HSA vs. FSA: What business owners need to know What type of health insurance plan do you make available to your workers? After you meet your d… In retirement age, HSA funds withdrawn for non-medical expenses are treated as income (taxed, but not penalized). However, the plan with the HSA has much higher overall deductibles (for a family, $3000 vs $750 for the plan with the FSA), and a much higher out-of-pocket limit for the plan ($6850 for the HSA plan vs $3000 for the FSA plan), as well as a higher annual premium (approx 4% higher). The FSA Employee Profile If the profile of an employee enrolling in an HSA looks like what we just described, what does the profile of an employee enrolling in an FSA look like? HSA vs HRA vs FSA Comparison Chart : Health Savings Account (HSA) Flexible Spending Account (FSA) Health Reimbursement Arrangement (HRA) Account Owned By: Employee/ Individual: Employer (held in employee’s name) Are enrolled in a high-deductible health plan Health Savings Account Flexible Spending Account; When to Use: You can use the HSA to pay for eligible medical, dental, and vision expenses under the Bronze, Bronze Plus, or Silver coverage levels. The age old debate – which should I use, a Health Savings Account or a Flexible Spending Account? Your employer owns the account. Each person’s health care situation is different with different needs and objectives. Employer contributes $300 to FSA. For … With an HSA, you own the account and can take it with you wherever you go, with funds that you can’t lose. Both types of accounts are quick and cost-effective to set up, and they require no changes to employees’ use of their medical benefits. FSA vs HSA, which is better in 2019? If you participate in an HSA, you are not eligible for a medical FSA but you may be able to also participate in a Limited Purpose FSA (LPFSA). HSA plan - Deductible $1500 and Out of pocket max of $3000. : You can use the Health Care FSA to pay for eligible medical, dental, and vision expenses under any coverage level. Must report account when you do your taxes. Who is eligible? The first and foremost difference between the two is that FSA is a SPENDING account while HSA is a SAVING account. Employers, on the other hand, are the ones who own FSAs. FSA, on the other hand, is available regardless of your deductible. HSA vs. FSA eligible expenses. Save $1000s per year by choosing the right type of health insurance coverage. Knowing these will help you understand the difference between plan types and make a better decision. The Profile of Employees Who Usually Open an FSA. You and your employer can put money in. Comparing HSA vs FSA. For 2018, a high-deductible plan is a plan with a deductible of $1,350 for individuals and at least $2,700 for families. HSA vs HRA vs FSA Comparison Chart Evan Rapp 2020-10-28T22:30:00-05:00. An HSA combines a high-deductible insurance plan with a tax-exempt savings account. Only your employer can put money in. As with an FSA, you can use the money in your HSA for qualified medical expenses. 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