Flexible Spending Accounts
Health Savings Accounts & Flexible Spending Accounts
There are two types of flexible spending accounts available through East Alabama Health: healthcare flexible spending accounts (FSA) and health savings accounts (HSA). Both accounts set aside pre-tax dollars through payroll deduction and may help reduce the amount of taxes you pay to help cover expenses that you will have during the year. Health Equity is the provider of our flexible spending accounts.
What are the differences in HSAs & FSAs?
- Health Savings Accounts use pre-tax money to pay for qualified medical expenses, including dental and vision. HSAs funds do not expire and may be invested similar to a 401k. HSAs may only be paired with a High Deductible Health Plan.
- Healthcare FSA can be used to pay for things such as copays, deductibles, dental work, eye glasses, contacts, prescription drugs or any other healthcare expenses that are not covered by your benefits. You can see a complete list by visiting www.irs.gov. FSAs can only be paired with a PPO medical plan.
Click here to see other ways the accounts differ.
Can I change my contributions?
- The amount of your contributions to an FSA plan must be determined prior to the beginning of the plan year. It cannot be changed unless you have a qualifying life event, you terminate employment, or a change occurs which is beyond your control. HSAs contributions may be changed at any time.