Understanding HSA & FSA Cards

A Health Savings Account (HSA) card works like a debit card, allowing individuals with a high-deductible health plan (HDHP) to pay for qualified medical expenses directly from their HSA account.

• Is enrolled in a high-deductible health plan (HDHP)
• Is not enrolled in Medicare
• Meets other IRS eligibility requirements

• You can use an HSA card anytime a qualified medical expense occurs.
• Use it at any healthcare provider or merchant that accepts debit cards and sells eligible products or services .

• Streamlined payments
• Easy expense tracking
• Tax-advantaged contributions, earnings, and withdrawals for medical expenses

A Flexible Spending Account (FSA) card also works like a debit card, but it's tied to an employer-sponsored FSA plan . It allows employees to pay for eligible out-of-pocket healthcare expenses using pre-tax dollars from their FSA account.

• Is employed by a company that offers an FSA
• Elects to participate during their employer's open enrollment
• Remains employed and enrolled in the plan

• You can use an FSA card throughout the plan year or grace period (if allowed).
• Use it at merchants and providers that accept FSA cards and sell eligible products and services .

• Pre-tax funds reduce taxable income .
• Immediate access to the full annual election amount at the start of the plan year .
• Helps manage healthcare expenses without waiting for the account balance to build .