HSA vs. FSA: What’s the Real Difference?

Navigating the alphabet soup of health benefits can be a headache, but at Opolis, we're here to simplify it. 

If you’ve ever found yourself wondering about Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs), you’re not alone. These accounts save you money on healthcare expenses, but they each offer unique features, rules, and benefits.

Let’s dive into what sets them apart and how you can maximize their potential as a solopreneur with Opolis.

The Opolis HDHP Advantage

We offer two qualified High Deductible Health Plans (HDHPs) to suit different needs. 

The Premium HDHP (p.8) provides access through Cigna’s largest National PPO Network, while the Value HDHP (p. 9) is on Imagine360’s Open Access Network. 

So what are High Deductible Health Plans? HDHPs come with a large upfront deductible for most services, encouraging you to make smarter healthcare decisions.

To help offset those initial costs, we recommend signing up for the HealthEquity Health Savings Account (HSA), available with our HDHPs. An HSA is a personal bank account where you can set aside pre-tax dollars to pay for eligible healthcare expenses.

Using an HDHP means you'll pay a specific dollar amount upfront (Annual Deductible). After meeting this deductible, you’ll continue to pay a percentage of costs (Coinsurance) or a set dollar amount (Copay). Once you hit your Annual Out-Of-Pocket Maximum, the plan covers most services in full for the rest of the year.

HSA vs. FSA: Breaking It Down

Setting Up an HSA vs. FSA

An HSA is available to anyone with an HDHP, including self-employed folks using Opolis. 

An FSA is typically only accessible through an employer. But for Opolis members with a C-corp, the Copay Plans can be paired with a FSA, which allows members to set aside pre-tax dollars to help pay for eligible out-of-pocket medical, dental, and vision expenses (Deductibles, Coinsurance, Copays). 

As an Opolis member, you have more choices than you would with traditional employers. 

Contribution Limits and Sources

For 2024, the IRS set the HSA contribution limits at $4,150 for individuals and $8,300 for families, with an additional $1,000 catch-up contribution for those aged 55 and older. 

For 2025, these HSA limits increase to $4,300 for individuals and $8,550 for families. Contributions can come from the account holder, their employer, or even family members.

Employers can match FSA contributions for 2024, with a cap of $3,050 per employee. In 2025, the cap increases to $3,200. Interestingly, if you contribute less than $500, your employer can kick in up to $500 without sticking to the usual one-to-one matching rule.

Eligible Expenses

Both accounts cover a wide range of medical expenses deemed eligible by the IRS. This includes costs for:

• Coinsurance and copays
• Deductibles
• Dental and vision care
• Prescribed over-the-counter medications (excluding insulin)
• Non-drug medical supplies (e.g., bandages, sunscreen)

Additionally, HSA funds can pay for insurance premiums in specific situations like COBRA, Medicare, and unemployment. HSA funds can also be invested, and any gains are tax-free when used for medical expenses, unlike FSAs.

Ownership and Rollover Policies

An HSA’s funds belong to the account holder, even if contributed by an employer. This means the money remains with you regardless of job changes. Unused FSA funds typically expire at the end of the year unless you set a grace period (up to $640 for 2024).

Digging Deeper: Opolis’ Unique Offerings

Health Savings Account with Opolis

At Opolis, we offer HSAs through HealthEquity for members enrolled in our HSA-qualified High Deductible Health Plans. Start by following these steps:

1. Enroll in an HDHP: Choose one of our HSA-eligible HDHPs through the Opolis website.
2. Set Your Contribution: Enter your pre-tax contribution amount, which will be automatically deducted from each paycheck and deposited into your HSA.
3. Confirm Your HSA Election: Your HealthEquity Health Savings Account will be opened on your behalf. Once set up, you'll receive a packet with details, including your HSA Debit Card.
4. Manage your HSA: Login anytime at HealthEquity.com or via their mobile app. Pay providers, view balances and transactions, and even invest your HSA funds for maximum tax-free growth potential.

For more information, check out our benefits guide.

Flexible Spending Account with Opolis

For Opolis members with a C-corp, our Copay Plans can be paired with a Flexible Spending Account. FSAs allow you to set aside pre-tax dollars to cover eligible out-of-pocket medical, dental, and vision expenses, such as deductibles, coinsurance, and copays.

• Healthcare FSA: Contribute up to $3,200 annually to cover eligible healthcare expenses for yourself and your dependents.
• Dependent Care FSA: Contribute up to $5,000 annually ($2,500 if married and filing separately) for dependent care services like child care, a disabled spouse, or an incapacitated parent.
• Limited Healthcare FSA: For those enrolled in an HDHP, this FSA allows reimbursement for eligible dental and vision care expenses only.

How It Works:

1. Set Your Contribution: Choose your annual contribution, which will be deducted from your paycheck pre-tax.
2. Access Your Funds: Use your HealthEquity Benefits FSA Debit Card for eligible expenses, or submit claims online.

Important Rules for FSA accounts:

• You must be an Opolis member with a C-Corp.
• You must re-enroll for an FSA annually.
• You must incur eligible expenses within the plan year (Jan 1 - Dec 31).
• You must submit expenses by March 31st of the following year.
• You can roll over up to $640 of unused healthcare FSA funds; you forfeit the rest.

For more information, check out our benefits guide.

Conclusion: Choose Wisely, Save Wisely

When it comes to HSAs and FSAs, it’s not about picking the "better" option— it's about choosing what fits your needs and your business structure. 

At Opolis, we get that navigating benefits can feel like trying to solve a Rubik's Cube blindfolded. That’s why we’re here to simplify, clarify, and help you make the most of your money. 

Whether you're leaning towards an HSA or an FSA, we're ready to support your decision with top-notch plans and seamless management tools. Maximize your benefits with Opolis. Because your health— and your wallet— deserve it.