Health Savings Accounts vs. Flex Spending Accounts

What is a Health Savings Account?

A Health Savings Account (HSA), allows you to set aside money on a pre-tax basis to pay some health expenses if you have a “high deductible” Marketplace health insurance plan.

What is a Flex Spending Account?

A Flexible Spending Account (also known as a flexible spending arrangement) is a special account you put money into that you use to pay for certain out-of-pocket health care costs. You don’t pay taxes on this money.

What is the difference?

I just read a good overview of the difference between FSA’s and HSA’s from a USA Today article (FSA vs HSA: How to Make the Best Choice During Open Enrollment) dated November 19th, 2015. Read here.

Does your employer offer you or your spouse the opportunity to participate in a Flex Spending (FSA) or Health Savings Account (HAS)? If you are new to one of these programs, it’s important to understand some of the basics. For one, money that you have contributed to a FSA will be lost at the end of the calendar year if not spent on qualifying products or services.

What are qualifying products or services? Quitting smoking!

Yes, funds from FSA’s and HSA’s can be used at Alpha Lifestyle Center for laser therapy to quit smoking. Our program can help individuals kick any nicotine habit including chewing tobacco, vaping, e-cigarettes and even nicotine patches and gum.

If you are a tobacco user and are trying to identify appropriate expenses for your FSA funds before the end of the year…..we have a suggestion: Come see us. Who could argue that help with quitting smoking isn’t an appropriate use of those funds?