The accounts listed in the chart below can save you money because you can set aside pretax dollars from your paycheck to cover qualified expenses that you would normally pay with after-tax dollars.

The health system offers these tax-advantaged accounts through Fidelity, the same partner who administers our retirement plans. Access your accounts any time with Fidelity’s mobile app, NetBenefits.

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 should I open an account?

To save for future healthcare expenses in 2023 and beyond. Money goes in tax-free, is invested tax-free and can be used to pay for qualified medical, dental and vision expenses. The health system contributes $500 for employee-only coverage; $1,000 for family.

To save for healthcare expenses expected in 2023. The money you set aside in the FSA is not subject to payroll taxes, so you take home more of your paycheck.

To save for dependent care expenses expected in 2023. The money you set aside in the FSA is not subject to payroll taxes, so you take home more of your paycheck.

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.

What if I don't use the money in 2023?

All unused funds roll over each year.

Any unused funds are forfeited. You have until April 30, 2024, to submit claims for eligible expenses incurred Jan. 1, 2023-Feb. 28, 2024.

Any unused funds are forfeited. You have until April 30, 2024, to submit claims for eligible expenses incurred Jan. 1, 2023-Feb. 28, 2024.

When can I use the money in my account?

Money you contribute from each paycheck is available as soon as it's added to your account. Funds provided by the health system are available Jan. 1 or, for newly eligible employees, as sson as their account is activated.

Your total annual elected amount is available for you to use beginning Jan. 1, 2023.

Money you contribute from each paycheck is available as soon as it's added to your account.

Can I invest the money in my account?

Yes

No

No

How much can I contribute?

$3,850 individual, $7,750 family. Age 55 and over can contribute an extra $1,000.

$2,850

$5,000

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An HSA is a tax-advantaged account individuals enrolled in the HSA Advantage medical plan can establish to pay for qualified medical expenses. It is only available if you are not enrolled in Medicare, have no other health coverage, and can’t be claimed as a dependent on someone else’s tax return.

An HSA allows you to save money on a pretax basis to pay for qualified medical expenses, and it also can be an effective long-term savings vehicle to help cover healthcare expenses in retirement.

You can use the funds in your HSA to pay your healthcare expenses out-of-pocket or allow your HSA investments to stay in your account and grow. (Keep your receipts if you think you will want to reimburse yourself in the future.)

Here are important things to know about electing an HSA:

  • The health system provides “seed” money to support employees with healthcare expenses. The money is deposited the first week of January 2023.
    • Individual coverage: $500
    • Family coverage: $1,000
  • Employees may contribute additional pretax dollars to their HSA from each paycheck to build up the account for healthcare expenses, up to the maximum amount allowed by the IRS:
    • $3,850 for individual coverage
    • $7,750 for family coverage
    • Employees 55 and older may contribute an additional $1,000
  • Think of an HSA as a guaranteed discount on money you’re already going to spend on eligible healthcare expenses (braces, prescription drugs, copays for medical care and much more).
  • Funds in an HSA roll over from year to year.
  • HSA funds are 100% yours and the money goes with you if you leave the health system.
  • You can invest the money in your HSA.

A healthcare flexible spending account, or FSA, is a tax-advantaged account that allows you to pay for eligible medical expenses. The amount you decide to contribute to the account for the year is deducted from your salary before income taxes. This deduction reduces your taxable income, saving you money on taxes.

Depending on the extent of your healthcare costs, an FSA can help you save a lot of money on taxes. But careful planning is needed: Unused funds do not roll over from year to year. It’s important to be careful not to contribute more than you spend.

A healthcare FSA can be useful for people with any level of health costs. If you have predictable, ongoing medical expenses during the year, or regular over-the-counter spending, using pretax dollars for those costs saves money.

How it works

You’ll have to submit receipts and documentation for reimbursement. You can use your FSA for your own expenses or expenses incurred by your spouse or any dependents you claim on your taxes. You can also use healthcare FSA funds for any adult children on your medical plan who will be 26 or younger on Dec. 31.

How much to contribute

To decide if an FSA is right for you, take stock of your health spending. If you have any ongoing or expected medical needs to pay for in the upcoming year, an FSA is a great use of your money. The funds can also be used for over-the-counter items such as allergy and sinus drugs, first-aid supplies, digestive health products and home COVID-19 tests.

You can contribute up to $2,850 in 2023; you’ll choose your amount during annual benefits enrollment. You can’t change the amount during the year unless you have a qualifying life event, such as getting married or having a child.

Your spouse can also contribute up to $2,850 if they have their own employer-sponsored healthcare FSA.

FSA balances expire

FSAs are “use or lose,” meaning the amount in your account will expire at the end of the year. However, there is a grace period until Feb. 28, 2024 to incur expenses; claims for reimbursement for 2023 expenses must be submitted by April 30, 2024.

A dependent flexible spending account, or FSA, is a tax-advantaged account that any benefit-eligible employee can establish – even if you have an HSA or healthcare FSA.

Dependent care FSAs are useful if you're paying for care for a child under age 13 or dependent adult while you work. The account is used to pay for qualified expenses like preschool, summer day camp and day care for a child or dependent adult. (It can’t be used for tutoring, overnight camp or school tuition.) For a complete list of dependent care FSA expenses, refer to IRS publication 503.

The amount you decide to contribute to the account for the year is deducted from your salary before income taxes. This deduction reduces your taxable income, saving you money on taxes.

An FSA can help you save a lot of money on taxes. But careful planning is needed: Unused funds do not roll over from year to year. It’s important to be careful not to contribute more than you spend.

How it works

You’ll have to submit receipts and documentation for reimbursement.

How much to contribute

To decide if an FSA is right for you, take stock of your spending for dependent care. A dependent care FSA can be used for day care and preschool expenses, but also for things like summer day camp and after-school programs.

You can contribute up to $5,000 to a dependent care FSA if you file taxes as an individual or as a married couple filing jointly, or up to $2,500 if you’re married filing separately. This limit applies to married couples as a unit, so a married couple can contribute only up to $5,000 total. You’ll choose your amount during annual benefits enrollment.

FSA balances expire

FSAs are “use or lose,” meaning the amount in your account will expire at the end of the year. However, there is a grace period until Feb. 28, 2024 to incur expenses; claims for reimbursement for 2023 expenses must be submitted by April 30, 2024.