Surprise! In case you didn’t know, healthcare is very expensive. Fortunately, we have the Affordable Care Act (ACA), which makes health care affordable for every American; however, it is still very wise to save money for health care expenses that health insurance companies in Florida don't cover. Two ways to save are by opening a Health Savings Account (HSA) or a Flexible Spending Account (FSA) – but what’s the difference in Florida?
For starters, both allow individuals with health insurance in Florida (and throughout the country) to set aside a dedicated amount of money for qualified expenses. These expenses include copayments, deductibles, and coinsurance.
Health Savings Account
The only people that can open an HSA are those who have a high-deductible health plan, or HDHP for short. If you don’t have this health insurance in Florida, then your decision is pretty straightforward. For those that do, contributions to the account are tax-deductible, and you can change your contribution amount at any point; however, the contribution limit is $3,450 for an individual and $6,900 for a family. Withdrawals from an HSA can be used for most medical expenses, and any unused expenses will roll over into the next year.
Flexible Spending Account
Unlike HSA where only those with an HDHP are eligible, there are no eligibility requirements for an FSA, unless you are self-employed. Contributions to an FSA can be from your gross pay and are also tax-free. Once you have declared how much you are going to contribute, you cannot change it until the next open enrollment period for affordable health insurance in Florida. You also must use all of the contributed money, as it does not roll over into the next year and any unused contributions will be lost.
So, which one do you choose?
While both HSA and FSA are beneficial for those who have health insurance in Florida in saving for medical expenses, the bottom line is that HSA is the much better choice. Funds roll over, interest is tax-free, the account is portable, and the contribution amount can be changed at any time. If you are not eligible, then sign up for FSA, as it is better than nothing at all. Just don't forget to use all your contributions!
If you need help finding affordable health insurance in Florida, request a health insurance quote in Florida from us at Apollo Group. We are more than happy to answer any questions you may have about the process.