The Difference Between an HSA and an FSA

Thursday, 11 March 2021

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Hsa Vs Fsa

There are so many different types of health plans out there, that it can be easy to get #confused! Today, let’s unpack the difference between an HSA and an FSA. While they both exist to help you pre-fund your medical expenses, they operate very differently! And it’s important you know the #facts.

An FSA is a Flexible Savings Account and an HSA is a Health Savings Account. Let’s break down the main differences between the two:

Health Savings Account

  • You, as the employee or the member, own the HSA account
  • The money deposited into your HSA account rolls over from year to year so you can build a bigger safety net to pre-fund your medical expenses
  • If you lose your job or step away from your place of employment, you can keep your HSA open and continue to fund it on your own

Flexible Savings Account

  • You and the employer own the account jointly
  • You have to #use the money or you #lose it at the end of the year and the funds will not roll over
  • If you lose your job or step away from your place of employment, you lose your FSA account

Now that you’re #educated on the difference between an HSA and an FSA, we hope this #empowers you to plan accordingly for any medical expenses you may be facing this year! If you have any questions about either of these accounts, give Clevenger Insurance a call today at 574-267-2181.

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