Benefits Administration Company, Clarity Benefit Solutions, Shares HSA and FSA 2018 Enrollment Facts
NEW YORK, Dec. 25, 2017 /PRNewswire-iReach/ -- Benefits administration company, Clarity Benefit Solutions, shares HSA and FSA 2018 enrollment facts.
HSAs and FSAs are popular supplemental health plans. To enroll in—and contribute to—an HSA, an employee must be enrolled in a qualified, High Deductible Health Plan (HDHP). With an FSA, an employee can sign up for an account without being enrolled in an HDHP. An employee cannot have an HSA and an FSA at the same time. However, it is possible to have a limited-purpose FSA with an HSA, which can only be used to pay for eligible dental and vision expenses incurred by employees or their spouses and qualified tax dependents. The contribution caps for a limited-purpose FSA are the same as for a health FSA.
Both FSAs and HSAs are gaining in popularity thanks to the growing use of HDHPs, and enrollment numbers will continue to rise in 2018. When choosing between an HSA or an FSA, employees should realize that they are the owner of their HSA accounts. If they retire or change employers, the account follows them. With an FSA, the employer owns the account. It cannot be taken to another job or continue to be used if the employee voluntarily or involuntarily leaves an employer.
HSAs offer what is known as a "triple tax advantage"—meaning that contributions are tax-deductible, withdrawals are tax-free when employees use account funds to pay for eligible expenses, and earnings are also tax-free. Additionally, HSAs allow employees to invest unspent monies, which can be used toward retirement.
FSAs also allow employees to use pre-tax dollars to pay for health care expenses that are not reimbursed by HDHPs. Eligible expenses include costs associated with medical, dental, vision, orthodontia, and hearing products.
To maximize employee enrollment in these accounts, employers should also emphasize the convenience of having these accounts. Employees have opportunities to supplement their health plan coverage, save for big-ticket expenses, and meet out-of-pocket fees. Educate employees about contribution limits, employer matching, and estimation tools that can assist them in estimating their annual health care needs.
About Clarity Benefit Solutions: Clarity Benefit Solutions provides technology that makes the health insurance plan selection process fast, easy, and straightforward. For over two decades, we have provided clients with industry-leading technology, compliance, and exceptional customer service. Our offering is designed to save time and lower the costs of managing benefits while also promoting employee self-service and automated ACA compliance.
Media Contact: Calvin Clark, Clarity Benefit Solutions, 732-428-8272, [email protected]
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SOURCE Clarity Benefit Solutions
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