During Open Enrollment, you may be wondering what the difference is between a Flexible Spending Account (FSA) and a Health Savings Account (HSA).
FSA’s are voluntary plans which employees enrolled in the Classic or Value plans may participate in. Individuals make pre-tax contributions between $240 and $2500 a year via Payroll deduction to assist with eligible out-of-pocket medical expenses. The FSA is front-loaded, and is a “use it or lose it” benefit.
HSA’s 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. 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 FSA’s and HSA’s 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 HRS Open Enrollment website at http://hrs.wsu.edu/openenrollment2015 and on the FSA-HSA Comparison Chart.
