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.