HSA vs. FSA: What's the Difference?

As healthcare costs rise, you may wonder how you can continue to offer employees a competitive health benefit without breaking your budget. Let's look at how health savings accounts compare to flexible spending accounts.

They both budget-friendly and flexible ways to cover your employees' out-of-pocket healthcare expenses. HSAs are employee-owned bank accounts that allow pre-tax savings for future healthcare expenses. These funds also rollover the next year if they aren't used. However, FSAs are employer-owned accounts that have rollover limitations and require employees to forfeit unused funds at the end of the year. An HSA is also portable, while an FSA isn't. So the account isn’t available if your employee no longer works for you.

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