As we approach the season of open enrollment and year-end wrap-ups, one of the key decisions you may face involves evaluating your healthcare benefits. Two options that frequently emerge during this decision-making process are Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs). There are similarities and differences between both, so it’s important to understand the nuances of these accounts to help you make an informed choice for the upcoming year and use up benefits before you lose them.
What is an HSA?
A Health Savings Account (HSA) is a tax-advantaged medical savings account available to taxpayers in the United States who are enrolled in a high-deductible health plan (HDHP). Contributions made to an HSA are tax-free, allowing you to set aside money for future medical expenses without any tax liability. The funds in an HSA roll over year-to-year if they aren’t spent. An added benefit is that some employers contribute to HSAs as part of their benefits package. One thing to keep in mind, however, is that HSAs are typically tied to high-deductible plans. This means that while you might save on premiums, you’ll have a higher out-of-pocket cost before your insurance kicks in.
What is an FSA?
On the other hand, a Flexible Spending Account (FSA) allows employees to set aside pre-tax earnings for medical expenses. However, unlike HSAs, FSAs are characterized by a “use it or lose it” policy. If the funds aren’t utilized by the end of the plan year (with some exceptions allowing for a short grace period or a carry-over of a limited amount), they are forfeited. FSAs are not dependent on the type of health plan you have. So, you don’t need a high-deductible plan to qualify.
Key Similarities and Differences between HSAs and FSAs
Here is a quick list of what these two health accounts have in common:
- Tax advantages: Both HSAs and FSAs offer tax advantages, allowing you to set aside money for healthcare expenses without the burden of tax.
- Contribution limits: Each account has an annual limit on how much you can contribute. It’s essential to keep abreast of the current contribution limits to maximize benefits without overstepping boundaries.
- Eligible expenses: Both accounts cover a wide range of medical expenses, from prescription medications to doctor visit co-pays and medical equipment.
Now, a look at the differences you’ll find between HSAs and FSAs:
- Rollover: One of the most significant differences is the rollover feature. HSAs allow unused funds to roll over year after year, while FSAs typically don’t. This difference is crucial for planning how much to contribute each year.
- Dependence on health plans: HSAs require that you have a high-deductible health plan. In contrast, FSAs are available regardless of your health plan type.
- Account ownership: If you change jobs, you can take your HSA with you; but FSAs are generally not portable.
Typically, as the year draws to a close, you might decide to use up the money in these accounts, taking care of health expenses if you have been putting off all year. Especially if you have an FSA, you should be thinking about how to utilize your remaining funds because, with most FSAs, unused funds may be forfeited at the end of the year.
Utilizing Funds to Improve Your Health
Screening tests offered by Any Lab Test Now® are the ideal way to make use of those resources in your health accounts before the zero hour and address your and your family’s health.
Our lab testing centers offer thousands of tests that can address specific health concerns or more general screenings that provide a snapshot of your overall health. Here are a few to consider:
Regular lab tests through bloodwork are essential for tracking your health and establishing a reference point. By understanding your initial levels, you can observe their fluctuations over time.
If you’re looking to proactively manage your health but need a starting point, the Annual Check-Up Panel is a great choice. This set of five tests, often requested during a yearly physical, offers insights into your blood count, kidney and liver performance, electrolytes, cholesterol, triglycerides, hemoglobin A1c, and thyroid functionality.
Even when you’re in good health, regular lab tests play a crucial role in preserving it. If you want to examine your well-being but are unsure of the starting point, consider the Comprehensive Female Panel. Comprising 11 tests, it offers insights into blood counts, kidney and liver health, electrolytes, cholesterol, hemoglobin A1c, thyroid activity, and hormone balances. This panel is tailored for women across all age groups aiming to proactively manage their health.
Consistent lab testing remains crucial for health upkeep, even when you’re feeling good. If you’re seeking a broad health assessment and are uncertain about the starting point, the Comprehensive Male Panel is a blood test that might be your answer. With eight tests, it delivers insights into blood counts, kidney and liver health, electrolytes, cholesterol, hemoglobin A1c, thyroid activity, prostate wellness, and hormone balances. It’s a fitting choice for men across all age brackets aiming to proactively oversee their health.
Any Lab Test Now® is Your Partner in Health
We want to help you and your family stay healthy by providing answers about your wellness. At Any Lab Test Now®, we provide tests that give you tangible results, utilizing your FSA or HSA to cover the costs. We provide the lab testing; you own the results and can use them as you choose. Call now to schedule an appointment at a location near you.
