Health savings and flexible spending accounts

To help you manage your health and wellness expenses, HonorHealth offers you a variety of options.

• Health savings account
• Flexible spending account
• Dependent care spending account
• WEX Debit Card
• Backing up your FSA Claim
• CARES Act Changes to HSA and FSA use

The HealthEquity health savings account is a tax-free way to plan ahead and save for qualified healthcare expenses, including medical services, prescription medications, dental care, vision care and other medical goods and services for you and your eligible dependents. You must be enrolled in the High Deductible Health Plan in order to participate in the health savings account.

Contributing to your health savings account
Your health savings account contributions roll over each year and earn equity, enabling you to prepare for planned and unplanned health expenses down the road. HonorHealth will make annual matching **contributions up to $500 for individual coverage ($20.83 per pay period) or $1,000 for family coverage ($41.66 per pay period). The IRS max allowed for individual is $4,150, the IRS max allowed for family is $8,300. Employees 55 to 65 years of age who are not enrolled in Medicare may add an additional $1,000 catch-up contribution each year.

**please note that beginning on January 1, 2024, those making $150,000 or more annually are not eligible for the contribution match from HonorHealth.

How your HSA Works
Unlike other health accounts such as a flexible spending account, you never lose your unspent health savings account contributions, even if your employment with HonorHealth ends. The money in your account may earn interest or be invested under certain circumstances, according to the rules of the health savings account provider.

If you choose the health savings account plan, you may also enroll in a limited-purpose flexible spending account intended only for vision and dental expenses.

The IRS has many rules governing savings accounts. Before you commit to the health savings account plan, be sure you understand the eligibility, use and limitation terms and how enrollment may impact your tax status. Find more information on the HealthEquity website.

HonorHealth employees and their eligible dependents may take advantage of flexible spending accounts that use pre-tax dollars to pay for eligible out-of-pocket eligible healthcare and/or dependent care expenses.

If you’re enrolled in the health savings account plan, you’re not eligible to enroll in a healthcare flexible spending account. You may, however, enroll in a limited-purpose flexible spending account.

A few common eligible expenses with a Limited FSA are:

• Dental copays
• Vision copays
• Prescription glasses

Health savings account enrollment does not prohibit you from enrolling in a child/dependent care flexible spending account known as the Dependent Care Spending Account.

Flexible spending account claim form.

How your FSA works
With a healthcare or dependent-care flexible spending account, you decide how much to contribute annually based on your estimated eligible expenses for the year. Effective January 1, 2024, the IRS maximum election amount for the health care account is $3,200. The maximum election amount for the dependent care account is $5,000. Monies are deducted in equal amounts from each paycheck before taxes. Since the money is set aside before taxes, you save on federal, state, Social Security and Medicare taxes.

Eligible healthcare or dependent care expenses incurred throughout the calendar year can be reimbursed from your flexible spending account. You can choose to have expenses reimbursed throughout the year, or you may wait and have the year’s expenses reimbursed at one time.

The cost of most over-the-counter medications cannot be reimbursed through your flexible spending account without a prescription or letter of medical necessity from your healthcare provider. However, IRS regulations do allow normal reimbursement for select categories of over-the-counter medications, reading glasses and first-aid items.

It’s important that you estimate your anticipated healthcare expenses carefully because you’re only able to carry over up to $640 of your unused healthcare FSA money for the coming year’s expenses. Any money in excess of $640 that remains in your account will be forfeited.

Pre-tax contributions to your dependent care spending account may be used to pay for day care expenses for your dependent children or a disabled adult whom you declare as a dependent on your federal tax return. You may contribute up to $5,000 annually to your dependent care spending account.

Healthcare flexible spending accounts and dependent care spending accounts are administered by WEX (formerly Discovery Benefits). Visit WEXInc.com and log in to view your claims, obtain spending account forms and review important plan information.

The pre-paid benefits card for your flexible spending account

To make using your flexible spending account funds easy and convenient, you’ll receive a benefits debit card to pay for your eligible healthcare or dependent care expenses. The benefits debit card is linked to your flexible spending account, enabling you to use those funds at the time of service rather than wait for reimbursement. You may be asked to provide documentation that it’s an eligible expense as outlined by IRS guidelines, so be sure to keep all receipts.

If your card transaction cannot be automatically verified, you may receive a receipt request letter asking for documentation to verify the expense(s).