FSAs and HSAs Compared
The Flexible Spending Accounts (FSAs) and Health Savings Accounts (HSAs) are an affordable way to save money on health care. FSAs and HSAs operate differently. Here’s how.
| Dependent Care FSA | Healthcare FSA | Limited Use FSA | Health Savings Account | |
|---|---|---|---|---|
| Who can participate: | If you anticipate eligible dependent day care expenses. | If you enroll in the PPO or HMO or do not elect any BMC medical plan | If you enroll in the BCBSTX HSA Plan | If you enroll in the BCBSTX HSA Plan |
| What happens to unused contributions | Subject to the “use it or lose it” rule; you forfeit them at the end of the year | You can carry over up to $660 from one plan year to the next | You can carry over up to $660 from one plan year to the next | Any unused contributions remain in your account for future health care expenses |
| Contribution type | Before-tax contributions | |||
| How much can I contribute | Contribute from $240 to $5,000 per year | Contribute from $240 to $3,300 per year | Contribute from $240 to $3,300 per year | Single: $4,300 All other coverage levels: $8,550 If you are 55 or older, you can deposit up to an additional $1,000. |
| What expenses are eligible | Any eligible dependent day care expenses – as qualified by the IRS and incurred during the year | A full range of qualified medical expenses – as qualified by the IRS and incurred during the calendar year | Dental and vision expenses only (until you meet your deductible) and a limited range of expenses after you meet your deductible) – as qualified by the IRS and incurred during the calendar year. | A full range of qualified medical expenses – as qualified by the IRS |
| When can I change the contribution amount | The amount you contribute cannot change during the year unless you have a qualified status change (life event). | Change contribution amounts anytime | ||
| When are expenses reimbursed | All eligible expenses are reimbursed when you file a claim. However, reimbursements can only be made as funds become available from payroll deductions. | All eligible expenses are reimbursed when you use your debit card or file a claim up to the full amount of your annual contribution, regardless of the actual amount of money that has been deposited into your account through payroll deductions. | All eligible expenses are reimbursed when you use your debit card or file a claim up to the full amount of your annual contribution, regardless of the actual amount of money that has been deposited into your account through payroll deductions. | All eligible expenses are reimbursed when you file a claim or use your debit card. However, reimbursements can only be made as funds become available from payroll deductions or company contributions are deposited. |