Understanding the Similarities and Differences Between HSA and FSA - Medical Assisting Quizlet

Health Savings Account (HSA) and Flexible Spending Account (FSA) are both popular ways to save money for healthcare expenses, but they have key differences that set them apart. Let's explore the similarities and differences between these two medical assisting options.

Similarities:

• Both HSA and FSA allow you to use pre-tax dollars to pay for qualified medical expenses.
• Money deposited into both accounts can be used for medical expenses not covered by insurance.
• Both accounts can be used for copayments, deductibles, prescriptions, and other qualified medical expenses.

Differences:

• HSA is available to individuals with High Deductible Health Plans (HDHP), while FSA does not have this requirement.
• HSA funds roll over year after year, while FSA funds are subject to the
  

  Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs) both provide valuable ways to set aside pre-tax dollars for healthcare expenses, but it’s vital to grasp their fundamental differences and similarities. Understanding these can help you make the best financial decisions for your health.