Many of our clients have successfully used Health Savings Accounts (HSA) and Flex Spending Accounts (FSA). Otherwise, payment is due at the time of service.
Some insurance companies reimburse for nutrition therapy. Please inquire with your insurance company in advance to ensure coverage. (This info is from 2022. Check your HR resources for current amounts)
Differences Between FSA and HSA
Although FSAs and HSAs both allow people to use pretax income for eligible medical expenses, there are considerable differences between the two account types.
FSA | HSA | |
Qualifications | Must be set up by employer. | Requires a high-deductible health plan (HDHP). Cannot be eligible for Medicare. Cannot be claimed as a dependent on another person’s tax return. |
Annual Contribution Limits | Up to $2,650 individual. Up to $5,300 per household. | Up to $3,450 individual.* Up to $6,900 per household. |
Account Ownership | Owned by employer and lost with job change, unless eligible for continuation through COBRA. | Owned by individual and carries over with employment changes. |
Rollover Rules | Employer chooses whether: “Use it or Lose it” Employees get a grace period of 2 1/2 months to use funds | Unused funds roll over every year. |
When You Can Change Contributions | At open enrollment. If your family situation changes. If you change your plan or employer. | Any time, as long as you don’t go over the contribution limits. |
Penalties for Withdrawing Funds | May have to submit expenses to be reimbursed by FSA. Depending on employer, employees may not have access to funds for nonmedical expenses. | Savings can be taken out of the account tax-free after age 65. If used before 65, for nonmedical expenses, it is subject to a 20% penalty and must be declared on income tax form. |
*If you are 55 or older, you can make “catch-up” contributions, which add $1,000 per year to your HSA contribution limit.
If you are interested in investigating the root causes to your health challenges and are ready to take the first step, book an initial consultation HERE
