During Open Enrollment, you may wonder what the differences are between a Flexible Spending Arrangement (FSA) and a Health Savings Account (HSA).
FSAs are voluntary plans in which employees enrolled in a Classic, Value, Select, Plus, or SoundChoice plan or those who have waived medical coverage may participate. For 2021, individuals can make annual elections between $240 and $2750 to assist with eligible out-of-pocket medical expenses. The FSA is front-loaded with your funds as of January 1; the amount you choose for the plan year is divided into equal amounts and collected from each paycheck throughout the year. This is a “use it or lose it” benefit.
HSAs are automatically associated with the Consumer-Directed Health Plans (CDHPs). WSU will make an employer contribution to the HSA account, and employees may make additional pre-tax contributions via Payroll deduction (see the Open Enrollment FSA/HSA website for information about contribution limits). The account balance grows as contributions are made, and funds may be accumulated over time.
There are restrictions for individuals to be contributing to both FSAs and HSAs during the same year. You are encouraged to verify if you are eligible to participate. Additional information about both the FSA and HSA accounts can be found on the Open Enrollment FSA/HSA website.
Questions can be directed to HRS Benefit Services at (509) 335-4521 or hrs.benefits@wsu.edu.
