HSA vs. FSA
The medical plan you choose helps determine which type of account is available to you:
- Health Reimbursement Copay Advantage Plan: You will have access to a company-funded Health Reimbursement Account (HRA) to help cover out-of-pocket healthcare costs.
You may also choose to contribute to a Healthcare FSA to help cover eligible out-of-pocket expenses, such as prescriptions, that aren’t covered by your HRA. - Health Savings Medical Plan: You may contribute to a Health Savings Account (HSA) to cover medical, dental, vision, prescription drug expenses, and more.
- Kaiser HMO Medical Plan: You may contribute to a Healthcare Flexible Spending Account (HCFSA) to cover out-of-pocket expenses like copays, prescriptions, lab exams, and more.
HSA vs. FSA Comparison
| Account type | Healthcare Flexible Spending Account (HCFSA) | Health Savings Account (HSA) |
| Who is eligible? | You may contribute to a HCFSA if you are enrolled in the Health Reimbursement Copay Advantage Plan OR the Kaiser Health Maintenance Organization (HMO) Medical Plan. | You may contribute to an HSA if you are enrolled in the Health Savings Medical Plan. |
| Annual Contribution Limits | HCFSA: $3,400 | Single coverage: $4,400 Family coverage: $8,750 Catch-up contribution: $1,000 (if you are age 55+) |
| Who owns the account? | Siemens Healthineers | You |
| Contributions subject to income tax? | No | No |
| Does interest accrue? | No | Yes |
| Contributions | Money is deducted (pretax) from your paycheck every pay period. | Money is deducted (pretax) from your paycheck every pay period. |
| Disbursement of funds | You will have access to your entire annual election amount at the beginning of the plan year (or when coverage becomes effective). | Only funds paid in by you are available for healthcare expenses. |
| Catch-up contribution for older workers | No | Yes. If you are age 55+, you may contribute up to $1,000 more to your account per year. |
| Portability and forfeiture | You lose any unused funds when employment is terminated. | This account is portable. HSA balance is not forfeited when you change employers or health plans. |
| Expiration | Your HCFSA includes a rollover feature, allowing up to $680 of unused funds to roll into the next plan year. Any amount over $680 must be used by December 31 or will be forfeited. | Your funds never expire. |
| Can I change my contribution? | Only during Annual Enrollment or if you experience a Qualified Life Event, such as a marriage, divorce, or birth. | Yes, on a monthly basis. |
| Eligible medical expenses | Qualifying medical expenses are those specified in the plan, e.g., copays, coinsurance, deductible, prescription drugs, and more. | Qualified expenses include medical, dental, vision, and prescription drug expenses. |
| Proof of expenses required? | Yes. Remember to keep your receipts. | No. However, you should be prepared to substantiate to the IRS that the expense has been incurred, the amount of the expense, and its eligibility. |
