Paying for care with health spending accounts

Setting up accounts for your employees offers them the flexibility to save for care and other expenses, plus a few tax benefits as well. Here’s a quick look at your options.

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See how our spending accounts compare

Here’s how Health Savings Accounts (HSA), Health Reimbursement Arrangements (HRA) and Flexible Spending Accounts (FSA) work and how they differ.

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Your employee owns the account

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The employer owns the account

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Your employee has an HSA-Qualified Plan (HDHP)

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Only the employer can put money into the account

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Both the employer and employee can put money into the account

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Your employee can invest the money in the account

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Your employee has to report the account when doing taxes

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Learn about each type of spending account

Health Savings Account (HSA)

A Health Savings Account (HSA) is a bank account that lets your employees set aside pre-tax money to pay for certain health care expenses or save for retirement. Your employees may qualify for an HSA if they have an HSA-Qualified Plan (HDHP).

How does an HSA work?

Not only does an HSA allow your employees to save pre-tax dollars for health care, but it’s also their money, even if they change jobs. The money rolls over each year, they can invest it and any interest or gains they make are tax-free. And they’ll get an HSA debit card to pay for their health costs, which makes tracking expenses and planning for next year easier.

Vendor Options:

  • Integrated options with HealthEquity and HSA Bank

Learn more about HSAs

Health Reimbursement Arrangement (HRA)

An HRA allows you to reimburse a certain amount of your employees’ costs each year. Employees don’t contribute to this type of fund, but it will allow them to get help paying for their health care expenses each year.

How does an HRA work?

Once you set up an HRA, your employees can request reimbursement for their eligible expenses. And since HRAs are fully integrated into our process, we reimburse automatically on their claims. These funds can sometimes roll over from year to year, but they don’t follow an employee to their next job.

Vendor Options:

  • In-house with Autopay
  • Integrated* with Debit Cards with HealthEquity and HSA Bank

*Integrated HRAs with HealthEquity and HSA Bank are not available for EHB groups.

Learn more about HRAs

Flexible Spending Account (FSA)

FSAs are personal spending accounts that allow for employees to use pre-tax dollars to pay for their expenses in several areas, like medical, dental and vision. Child care expenses are typically eligible for children under 13.

How does an FSA work?

An FSA allows employees to set pre-tax dollars aside from each paycheck to pay for care expenses throughout the year. This helps them plan ahead and reduces their taxable income. However, the money typically does not roll over from year to year, so employees will need to plan ahead for how much they want to contribute so that they don’t lose funds from lack of use.

Vendor Options:

  • In-house with Autopay
  • Integrated with Debit Cards with HealthEquity and HSA Bank

Different Types of FSAs

There are three types of FSAs that may be available:

Health Care FSAs are for certain health care expenses (medical, dental, vision and even some over-the-counter services and supplies) that aren’t covered by your plan.

Learn more about Health Care FSAs

Limited-Purpose FSAs cover eligible dental and vision expenses.

Learn more about Limited-Purpose FSAs

Dependent Care FSAs cover day care-type services for dependents typically under 13 years old.

Learn more about Dependent Care FSAs

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Need to find documents and forms?

Find spending account forms for you and your employees.