As a part of our feature this month, we're exploring different elements of health care, and how it might relate to speech and hearing services. For many patients, Flexible Spending Accounts (FSA) and Health Savings Accounts (HSA) are great options for paying for medical expenses. But what exactly are these plans, and how can I set one up?
Both FSA and HSA accounts let you set aside pre-taxed money to pay for medical expenses like copays, medical equipment (hearing aids and custom earplugs), evaluations, treatments, and a variety of over-the-counter eligible expenses, but there are a few key differences that are important to know when making insurance decisions.
FSA: an account set-up by an employer where employees can set money aside tax free for certain healthcare expenses. While FSA contributions come from an employee’s pre-tax income, it is ultimately the employer who owns the account. In 2017, the FSA contribution limit is $2,600, and these funds (over $500) do not roll over at the end of the year.
HSA: an employee-owned account to set aside tax free funds for healthcare expenses. This account is only eligible to those with a high deductible health plan (e.g. more than $1300 for an individual, or $2600 for a family). In 2017, the HSA limit was $3,400 for an individual or $6,750 for a family.
To learn more about payment at Sound, or to inquire about using your HSA/FSA account for invoices, please contact our office.