Your benefits may include the option to have a financial account you can use to help pay health care costs your health plan doesn’t cover. Examples include:

• Your deductible, copays or coinsurance
• Out-of-pocket costs for dental and vision care
• Prescribed over-the-counter medications and supplies
• Other qualified health care expenses, as defined by the federal government

Types of health spending accounts

There are three types of financial accounts that may be offered as part of your benefits.

• Health Savings Account (HSA) – An HSA pairs with a high deductible health plan. Both you and your employer can contribute money to it, tax-free. The account belongs to you, even if you change jobs or health plans.
• Flexible Spending Account (FSA) – With an FSA, you have the option to set aside some of your own money, tax-free. You can use it to help pay health-related expenses. You don’t need a high deductible plan to have one. FSA funds often are “use it or lose it,” so it’s important to plan ahead. There are also dependent care FSAs (DCFSA). You can use this type of account toward child care or other dependent care costs.
• Health Reimbursement Account (HRA) – An HRA is a health savings account your employer sets up and funds for you. Your employer owns the HRA and can set up rules for how it works.