FSA-HSA Comparison
Flexible Spending Account (FSA) & Health Savings Account (HSA) Comparison Chart
| FEATURE | Medical Flexible Spending Account (FSA) Administered by Navia Benefit Solutions | Health Saving Account (HSA) Administered by Health Equity |
|---|---|---|
| ELIGIBILITY | You may enroll in a Medical FSA if you are enrolled in: • Kaiser Permanente WA Classic, Value, SoundChoice • Kaiser Permanente NW Classic • Uniform Classic, Select, Plus Or if you waived medical coverage *If you have an FSA your spouse cannot have an HSA. | You will be enrolled into a HSA if you are enrolled in: • Kaiser Permanente WA CDHP • Kaiser Permanente NW CDHP • Uniform CDHP *See IRS Pub 969 for eligibility requirements *CDHP enrollees may enroll in a Limited FSA to cover dental and vision expenses only |
| ENROLLMENT | Optional | Automatic |
| ACCOUNT OWNERSHIP | The account is owned by WSU and administered by Navia Benefit Solutions. | The HSA is owned by you and administered by HealthEquity. |
| TYPE | Annual (calendar year) | Long term, funds grow year over year |
| WHO CAN USE THE ACCOUNT? | Bills incurred by the employee and any IRS tax dependents are eligible for reimbursement. | Bills incurred by the employee and any IRS tax dependents are eligible for reimbursement. |
| WHEN CAN I START TO USE MY FUNDS? | For new hires: Bills incurred after the first of the following month in which the election was submitted are eligible for reimbursement. Open Enrollment: Bills incurred after January 1st of the following plan year are eligible for reimbursement. | Bills incurred after the account has been opened and money has been deposited into the account are eligible for reimbursement. |
| TAX IMPLICATIONS | Employee’s contributions are deducted out of each paycheck pre-tax, which reduces taxable gross income. | Employee’s payroll contributions are deducted from pay pre-tax, which reduces taxable gross income. Alternately, employees may send deposits directly to HealthEquity, and claim the deductions when they file their taxes. |
| CONTRIBUTIONS | Employee Only | Employee (optional) Employer (mandatory) |
| WHEN CAN I MAKE CHANGES? | Only at Open Enrollment, or within 60 days of experiencing a Special Open Enrollment event. Otherwise the election amount is fixed for the entire plan year. | HSA contributions can be changed at any time. |
| HOW MUCH DOES WSU CONTRIBUTE? | WSU does not contribute to this plan. | WSU contributes: • $58.34 per month for those with employee-only health coverage, up to $700.08 per year • $116.67 per month for employees enrolled with one or more dependents, up to $1400.04 |
| ANNUAL CONTRIBUTION LIMITS | Annual Minimum: $120 Annual Maximum: $3,050 per employee* in 2024 *You and your spouse may each enroll in an FSA and contribute up to the annual maximum. | No Annual Minimum Annual TOTAL Maximum (Including WSU’s Contribution and $125 Wellness Incentive if earned): • $4,150 employee-only coverage • $8,300 family coverage* *Those ages 55 and older may contribute an additional $1,000 per year *Family contribution maximums are per household, even if you and a spouse have separate accounts |
| WHEN ARE FUNDS AVAILABLE? | Account is front loaded with entire election amount. | Funds are available after they have been deposited. Employer contribution is deposited the last day of each month. |
| OBLIGATION TO ENSURE EXPENSES ARE QUALIFIED | Navia Benefit Solutions verifies eligible expenses as part of the claims process. | The account owner/employee is responsible to ensure expenses claimed are eligible. |
| IS RE-ENROLLMENT REQUIRED TO KEEP ACCOUNT ACTIVE? | Employees must re-enroll every Open Enrollment (November) for the next plan year to keep an FSA active. | No enrollment or re-enrollment necessary; employees are automatically enrolled in a HSA when enrolled in a CDHP health plan |
| USE IT OR LOSE IT? | Up to $610 of unused funds may be eligible to carry over to the next plan year. – If enrolling in FSA for next plan year, unused funds will be deposited into that account – If not enrolling in FSA for next plan, there must be at least $120 remaining on 1/1 for funds to carry over. – Funds will stay in same FSA type as previous year, unless you switch to a CDHP plan and funds are required to go in Limited FSA | Any funds you do not spend are yours to keep and roll over from year to year regardless of plan enrollment (including WSU contributions). |
| HOW TO USE THE ACCOUNT | Submit paper claims for reimbursement – Next-day claims processing – Direct Deposit reimbursements Use debit card (Navia Benefit Card) for reimbursement – Retain and be prepared to send in all receipts – Online account access/Mobile App | • Use debit card directly with medical provider • Request reimbursement via claim form or online • Use online bill pay to pay providers or yourself • Maintain records/receipts for future IRS audit • Manage and monitor your funds • File appropriate tax paperwork |
| WHAT HAPPENS IF I LEAVE THE UNIVERSITY OR AM NO LONGER BENEFIT ELIGIBLE? | Contributions are not portable, only claims incurred while eligibly participating in the plan are eligible for reimbursement. Any funds left in the account outside of the applicable year/grace period or after you separate from the university may be lost unless you request an accelerated FSA (you pay all remaining contributions for the remainder of the year and keep funds to use). There may be a COBRA benefit available. | Once money is deposited, it is owned by the account holder, and carried over indefinitely throughout the account holder’s lifetime. You can continue to make claims against your balance for covered medical expenses. After age 65 you can begin to draw on the account and pay taxes on money not used for medical expenses, with no penalty. The account may be passed on to a surviving spouse without federal tax liability upon death. |
| INVESTMENT AND INTEREST | Not an interest bearing account, no investment options | Funds can gain interest and employees may be able to invest funds past a certain balance. |
| BENEFICIARIES | No Beneficiary designation for this account | Beneficiary Designation Necessary |
*A Registered Domestic Partner must meet the IRS qualifications as a tax dependent to use the account.