Several types of financial accounts can help you save and pay for eligible healthcare and dependent care expenses. Read below to find out which are right for you.
Your spending account choices:
Health Reimbursement Account (HRA)
If you are already enrolled in the Innovation Health HRA HDP and remain enrolled in the plan for 2014, you will automatically receive an HRA.
(NOTE: This plan is offered in 2014 only to employees who are already enrolled in this plan.) This account is funded by Inova, and it is used to help pay for your qualified medical expenses.
The money in this account is used first, so if you don’t use it all, you may not have to pay anything out of your own pocket
for medical care! Plus, unused HRA amounts roll over year to year (limited to five times the original fund amount),
as long as you remain enrolled in the Innovation Health HRA HDP.
Health Savings Account (HSA)
If you enroll in the Innovation Health HSA HDP, you have the option to fund an HSA with your own money.
You can set aside up to $3,300 ($6,550 for family coverage) on a pre-tax basis to cover medical, dental and vision care costs. Paying for qualified healthcare expenses with pre-tax dollars can yield savings of 15 to 35 percent, depending on your tax bracket.
Unlike a Flexible Spending Account, any unused funds remaining in your account at the end of the year are yours to keep.
Healthcare Flexible Spending Account (FSA)
The Healthcare FSA allows you to set aside pre-tax dollars to pay for out-of-pocket healthcare expenses. You choose your annual contribution, and it will be divided equally among each pay period and deducted from your paycheck. Paying for healthcare with pre-tax dollars can result in savings of 15 to 35 percent, depending on your tax bracket.
If you have an HRA, medical expenses will be paid with the HRA first. You must use all the funds in your HRA before you can use your FSA for medical expenses. If you elect the Innovation Health HSA HDP, you can only enroll in a Limited Healthcare FSA, which allows you to pay for dental and vision expenses but not medical expenses.
Dependent Care FSA
The Dependent Care FSA allows you to set aside pre-tax dollars from each paycheck for child or elder care. You can enroll in the Dependent Care FSA no matter which medical plan you choose.
Flexible Spending Accounts: Reimbursement Details
You can receive reimbursement from your Healthcare FSA and Limited FSA at any time during the year for eligible expenses up to the total annual amount you elect to contribute. The Dependent Care FSA reimburses only the available funds that have been deducted (pre-tax) from your paycheck. If you request a reimbursement that exceeds the amount currently in your account, the remaining balance will be reimbursed when your contributions reach the amount needed.
Manage Your Account with PayFlex
PayFlex administers the FSA and HSA. (The HRA is administered by Aetna as part of the medical plan.)
PayFlex account features include an enhanced member portal that allows you to submit claims and upload receipts online.
Also, the PayFlex Mobile™ application helps you track your account balance and manage transactions.
Note that PayFlex is an affiliate of Aetna.
For more details on the accounts, choose one from the drop-down menu, or choose two for comparison.