Health savings accounts and flexible spending accounts

Health savings accounts (HSA) and flexible spending accounts (FSA) can save you money by allowing you to set aside pretax dollars from your paycheck to cover qualified expenses that you would normally pay out of pocket with after-tax dollars.

The health system offers these tax-advantaged accounts through WEX:

  • Health Savings Account (HSA)
  • Healthcare flexible spending account (FSA)
  • Dependent care flexible spending account (FSA)

Due to IRS rules, employees may not contribute to both a health savings account and healthcare FSA in the same calendar year. This applies even if you have a change to your medical plan mid-year. In addition, your spouse may not contribute to a healthcare FSA if you are enrolled in the HSA.

HSA and FSA elections must be made each year.

Elections do not roll over from year to year.

Spending account overview

Employees cannot contribute to an FSA and HSA in the same calendar year, even if they have a change to their medical plan.

  Health Savings Account (HSA) Healthcare flexible spending account (FSA) Dependent care flexible spending account (FSA)
Who can open the account? Employees who elect the HSA Advantage Medical Plan.* Benefit-eligible employees who are not enrolled in the HSA Advantage Medical Plan. Any benefit-eligible employee.
Why would I
open an account?		 To save for future healthcare expenses, short- and long-term. Money goes in tax-free, is invested taxfree and can be used to pay for qualified medical, dental and vision expenses without being taxed. To save on healthcare expenses expected in 2022. Set aside pretax dollars from your paycheck in 2022 rather than using your after-tax earnings on eligible expenses. To pay for some or all your 2022 dependent care expenses tax-free.
How can I use the money? To pay for medical, dental and vision expenses including deductibles, coinsurance, prescriptions and other eligible expenses. To pay for medical, dental and vision expenses including deductibles, coinsurance, prescriptions and other eligible expenses. To pay for eligible expenses at licensed day or elder care centers, nursery schools, day camps and home care with valid tax ID numbers.

*Employees enrolled in a healthcare FSA in 2021 need to deplete those FSA funds by Dec. 31, 2021, if they plan to enroll in the HSA Advantage Plan for 2022. Any funds remaining in the healthcare FSA at the end of the year will be forfeited for employees who enroll in the HSA Advantage Plan.