Should I enroll in a Health Savings Account or Flexible Spending Account?
Choosing the Right Plan for You and Your Family
Each year, an increasing number of Americans choose to enroll in a Health Savings Account (HSA) or Flexible Spending Account (FSA). Many WellcomeMD patients and friends reach out to us during the open enrollment period for their insurance with questions about whether they should choose one of these options and how they can make the most of their benefits.
Want to know more about HSAs, FSAs and how they apply to concierge medicine?
Call 888.531.3844 or contact info@wellcomeMD.com.
Health Savings Accounts
An HSA is a tax-advantaged medical savings account available to taxpayers in the United States who are enrolled in a high-deductible Health Plan (HDHP). The funds contributed to an account are not subject to federal income tax at the time of deposit.
You do not lose HSA funds if you do not use them immediately and, according to The Motley Fool, in many cases this money can be invested to help you reach your retirement goals.
Enrollment in HSA plans is on the rise. According to the Employee Benefits Research Institute, the number of HSA accounts grew from 4.9 million in 2009 to 21 million in 2017.
Flexible Spending Accounts
An FSA (sometimes referred to as a Flexible Spending Arrangement) is a special account you put money into that you use to pay for certain out-of-pocket health care costs. You don’t pay taxes on this money, which means you save an amount equal to the taxes you would have paid on the money you set aside. These funds are lost if they go unspent after an allotted timeframe.
Restrictions on qualifying expenses may apply depending on your company’s plan. Some plans may limit reimbursement to only a subset of eligible medical expenses and exclude others, whether or not they qualify under government guidelines. In many cases, a letter of medical necessity is required for an expense to be reimbursed by your FSA funds.
Use Your HSA or FSA with Concierge Medical Practices Like WellcomeMD
While HSA and FSA plans do not currently allow your contributions to be applied to membership fees associated with concierge medical practices like WellcomeMD, they can be applied to individual services that are part of your concierge experience. Every health care plan is different and whether or not to enroll in one of these plans is an important personal decision.
The friendly, knowledgeable staff of WellcomeMD can help guide our members through this process. Please contact us today for more information on becoming a member or to schedule a tour.