Comparison: HSA and HCSA
|HEALTH CARE FLEXIBLE
SPENDING ACCOUNT (HCSA)
|Who is eligible for this account?||Colleagues who enroll in the PPO Consumer Directed.
You are not eligible if you have any other health care coverage that is not a high-deductible plan (as defined by the IRS). Other health coverage includes a spouse’s plan that is not a high-deductible plan and a spouse’s traditional FSA.
|All colleagues are eligible for the HCSA.
If you enroll in the PPO Consumer Directed and/or participate in your spouse's high-deductible plan, the FSA that you qualify for is limited to reimbursement for dental and vision expenses and for medical expenses only after you have met your plan deductible. This is called a Limited Purpose Health Care FSA.
|Is the account automatically a part of the medical plan?||No. The HSA is separate and optional. If you enroll in the PPO Consumer Directed, you choose whether you want to activate an HSA and pay eligible expenses with the money in your account or save it for future use.||No. The FSA is separate and optional.
If you enroll in the PPO Consumer Directed, you may use your Limited Purpose Health Care FSA to pay for eligible dental or vision expenses and eligible medical and prescription drug expenses once you meet the annual deductible.
If you enroll in the PPO Traditional, you may use your Health Care FSA to pay for eligible dental, vision, medical and prescription drug expenses.
|Who makes the contributions?||You, through pre-tax payroll deductions and Huntington. To receive Huntington’s full 2013 contribution, you must open an HSA with WageWorks during open enrollment. If you open an HSA mid-year, Huntington’s contribution is pro-rated.||You, through pre-tax payroll deductions.|
|What are the tax advantages for me?||Contributions, earnings and withdrawals are all tax-free (including most states’ income taxes) if used to pay for eligible health care expenses. If you use the account to pay for a non-qualified medical expense, you will incur a 20% withdrawal penalty.||You contribute to your account and get reimbursed for eligible expenses with pre-tax dollars.|
|Can money in my account be invested?||Yes. Both your contributions and Huntington’s contribution will be deposited in a FDIC insured HSA bank account at HSA Bank. You will receive a reasonable rate of interest, determined by HSA Bank.
If your account balance reaches $1,000, you can invest part or all of your funds in other investments, such as mutual funds, including Huntington Funds. You still have access to these funds and may use them to pay for qualified medical expenses. However, you cannot access these funds through WageWorks. You need to work with HSA Bank to liquidate a portion of your investments to receive a distribution from your account.
|Do I keep the account if I switch to another plan next year?||Yes.||No. You must re-enroll for the FSA each year.|
|Do I keep the account if I leave Huntington||Yes.||No. Unless you elect to do so through COBRA.|
|Is there a deadline for me to use the account?||No. You can use the money in the account now, or you can save it and use it for future expenses. You can take money out of the account at any time after you incur the expense (even years later, in retirement). Just be sure you have receipts to prove the expense.||Yes. You must incur the expense for the year in which you opened the account by March 15 of the following year. For example, you have until March 15, 2014 to incur expenses for your 2013 account.|