Compare Spending Accounts

Here's a quick comparison of the key features of three popular healthcare spending account types.

The Basics

	Flexible Spending Account (FSA)	Health Savings Account (HSA)	Personal Care Account (PCA)
What is it?	An account that allows employees to set aside pre-tax dollars for qualified healthcare expenses	A tax-free*, interest-bearing account for qualified healthcare expenses now and in future years	An employer-funded account to help employees pay for healthcare expenses
Who can have it?	Employees whose employer offers an FSA	Employees whose employer offers an HSA Self-employed Retirees not yet enrolled in Medicare who have a qualified High Deductible Health Plan	Employees whose employer offers a PCA
Do employees have to get a certain kind of health plan?	They can have any type of health plan, but Humana's FSA is available only with our consumer-driven plans	To contribute, the employee needs to have a qualified High Deductible Health Plan and meet other eligibility rules	The employer decides – usually a PPO plan with a high deductible

*All mention of taxes is made in reference to federal tax law. Review your state's tax laws to determine the treatment of HSA contributions and earnings.

The Details

	Flexible Spending Account (FSA)	Health Savings Account (HSA)	Personal Care Account (PCA)
Who can put money in it?	Employer or employee	Employer, employee, and anyone else	Employer only
Is there a limit on how much employees can put in the account?	The employer sets a minimum and maximum annual contribution	The maximum HSA contribution is based on IRS regulations	Employees can't put money into the account
When can employees use the money?	Entire amount available at the beginning of the plan year. Healthcare FSA funds available only for services incurred during current plan year.	Employees can spend money contributed to-date	Entire amount is typically available at the start of the plan year
What's an eligible expense?	Items on employer's list of approved expenses – usually medical, dental, pharmacy, and vision expenses Download and Print Sample - FSA Qualified Expenses (103 KB) Download PDF English	IRS-approved expenses – medical, dental, pharmacy, and vision expenses Download and Print Sample - HSA Qualified Expenses (99KB) Download PDF English	Items on employer's list of approved expenses – usually medical and pharmacy expenses Download and Print Sample - PCA Qualified Expenses (103KB) Download PDF English
What if employees don't spend all their funds during the plan year?	After the claims filing deadline, employees lose unspent funds	Unspent funds stay in employees' accounts and roll over from year to year	It's the employer's call, but the funds can stay in employees' accounts for the following year
Can employees take funds with them if they leave their current employer?	No	Yes, including any money the employer put in the account	No

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