FSA vs. HSA and When to Use What

There is no denying that healthcare can be costly. From your annual physical exam to prescriptions, dental, and even vision — the cost of care can be hard to wrap your head around. That is where saving accounts like HSAs and FSAs can come in handy. Both accounts help you manage health care costs, tax-free.

These accounts put you in the driver’s seat and let you shop for the care you need when you need it. Here’s more on the savings accounts and how to use them wisely:

A refresher on what FSA and HSA are and how you can use either: 

  • FSA stands for flexible spending account, and HSA stands for health savings account. Both accounts allow you to set aside pre-taxed dollars from your paycheck (and through employer contributions) to use for qualified medical expenses like screenings, physical exams, prescriptions, lab tests, and more.
  • FSAs are employer-owned, when you leave a company or retire you cannot take your account with you. HSAs are employee-owned meaning that you can take the account wherever you go.
  • The main difference between an FSA and an HSA is that the FSA is a “use it or lose it” account whereas your HSA can be rolled over to the following calendar year.

You may be asking yourself how would I know if I have an FSA or HSA?

  • To be qualified for an HSA, your employer must offer a high-deductible health plan (HDHP), whereas a low-deductible health plan would be paired with an FSA. And if you have both accounts, note that you cannot contribute to your FSA and HSA during the same year. Contact your Human Resources department to understand what your employer offers and what contributions are being made.

So, what are the benefits of an FSA and how much can you contribute? 

  • The funds that are saved in an FSA account are deducted from your earnings before taxes, lowering your taxable income.
  • You can contribute ~$2,600 annually to an FSA, with the ability to make changes to your contribution during open enrollment or special qualifying events.
  • Similar to your HSA, you can use your FSA to pay for fertility treatments, procedures, copayments, over-the-counter drugs, and more.

Compared to the benefits and contribution of an HSA:

  • The pre-taxed funds that are saved in your HSA can be rolled over year after year— you do not have to worry about spending it right away. 
  • The contribution limit on HSAs vary for individuals (ranging from $3,000-$6,500) and HSA contributions can be changed at any time.
  • Additionally, HSA plans give you the option of investing your funds, which lets you earn a profit tax-free.

What’s covered at Kindbody with either your FSA and HSA? 

  • Fertility assessments, procedures, gynecologic care, wellness, copayments, out-of pocket costs, and supplements.*Check with your HR team on complete benefit details to see what is covered by your employer.

Ready to use your pre-taxed dollars? Book an appointment here.

Kindbody is a new generation of women's health and fertility care. Providing you with the information you need to take control of your health and make the decisions that are right for you. We’re a community of healthcare providers, fertility specialists, and women who get it. We’re on a mission to democratize and de-stigmatize women’s health and fertility care, making it accessible, intuitive, and empowering.