Health savings accounts (HSAs) and flexible spending accounts (FSAs)* are tax advantaged accounts that can be used for health related purchases. There are two key differences between HSAs and FSAs that are helpful to keep in mind when deciding if they’re right for you.

A. Ownership

1. FSA accounts are owned by your employer whereas HSA accounts are owned by you, the individual. This is an important distinction as it means that FSA funds are typically use it or lose it. If you don’t spend the money in your FSA by the end of the year, you lose access to it and it goes back to your employer. A similar situation can happen when you change jobs. You may find yourself with a limited amount of time to spend the money in your FSA.
2. With an HSA, the money in the account is yours and it stays with you through job changes and year over year. You can also open an HSA yourself which makes them a great option for people who are self employed.

B. Ability to invest

1. Instead of spending money on current healthcare expenditures, you can choose to invest your HSA contribution and let it grow tax-free over time. This is a great option if you don’t need or want the money for current expenses.

You do not have the option to invest the money in an FSA.

• It’s common practice for HSA and FSA providers to send you a debit card that you can use to purchase eligible items. Both FSAs and HSAs are acceptable online and in physical stores.

• You can also pay for health expenses with your regular credit or debit card, collect receipts, and submit to your HSA or FSA provider to be reimbursed.

1. At checkout, select the "Flex | Pay with HSA/FSA funds" payment method to be redirected to the Flex checkout.
2. Once in the Flex checkout, you will be asked to complete a brief health survey to confirm that you qualify to pay with HSA/FSA.
3. If you qualify, you will then be able to enter your HSA/FSA card details and complete your checkout. If you don’t have your HSA/FSA card handy, you can complete your checkout using a regular credit or debit card.
4. After completing payment, Flex will send your Letter of Medical Necessity via email along with an itemized receipt for your records. If you used a regular credit or debit card to checkout, the itemized receipt may be used for reimbursement purposes.
5. Retain your Letter of Medical Necessity with your tax documents.

You must receive a Letter of Medical Necessity from a physician deeming our product(s) medically necessary before we can accept HSA/FSA funds. Flex is able to issue a Letter of Medical Necessity directly in the checkout flow, so you can quickly and easily use your funds.