What are FSA and HSA Cards? Understanding the Basics

Flexible Spending Account (FSA) and Health Savings Account (HSA) cards are payment cards that work differently to help individuals save on healthcare expenses. FSA and HSA cards allow you to pay for eligible healthcare expenses using pre-tax funds, providing a convenient way to manage your healthcare costs.

FSA and HSA cards are what is known as tax-advantaged accounts, designed to help individuals save money on medical expenses by using pre-tax dollars. Here's a breakdown of what FSA and HSA cards are:

• Employer-sponsored benefit
• Use pre-tax funds to pay for eligible medical expenses
• Contributions are set by the employer
• Use-it-or-lose-it rule applies, meaning funds don't roll over year to year

• Individual-owned account for those with a High Deductible Health Plan (HDHP)
• Use pre-tax funds for qualified medical expenses
• Contributions can be made by the individual or employer
• Funds roll over year to year, allowing for savings to accumulate

Understanding how FSA and HSA cards work can help you make informed decisions about managing your healthcare expenses. By utilizing these accounts effectively, you can save money on healthcare costs while taking advantage of tax benefits.

Flexible Spending Accounts (FSA) and Health Savings Accounts (HSA) are powerful tools designed to assist you in managing your healthcare costs. Both FSA and HSA cards allow you to spend pre-tax money on qualified medical expenses, but they come with different rules and eligibility requirements that can impact how you utilize these benefits.