You can lower your overall health care costs by participating in one of these plans:
- Health Savings Account—available if you enroll in the UC Health Savings Plan (HSP).
- Health Flexible Spending Account (FSA)—available if you enroll in one of UC's medical plans other than HSP, including UC Care or CORE.
Health Savings Account (HSA)
UC Health Savings Plan (HSP) members can lower their overall medical costs with a Health Savings Account (HSA). It’s a personal savings account to use for health care expenses—both now and in the future.
If you enroll in the HSP, UC makes an annual contribution to your HSA of $500 for individual coverage or $1,000 for family coverage. You can contribute, too, up to these limits for 2018. The money you contribute comes out of your pay before federal taxes, which lowers your taxable income. Unused money in your account rolls over from year to year and is always yours—even if you leave UC or retire.
Use your HSA to pay your initial out-of-pocket expenses—such as for office visits, prescriptions, lab services, X-rays, hospital stays, and out-of-network care—and reduce your out-of-pocket costs. Or pay those expenses using a different source and let the money in your HSA grow so that you can use it in the future—including during retirement.
HealthEquity administers the HSA and offers tools to help to you maximize your savings.
Not all healthcare expenses are covered by your medical, dental and vision plans. With the Health Care FSA, you can save money all year on your out-of-pocket medical expenses because your contributions to your account are tax-free—and so are your reimbursements for eligible expenses.
You can contribute up to $2,550 each year. Just be sure to choose your contribution level carefully. Any money over $500 left in your account at the end of each year is forfeited. Learn more about the FSA at UCnet.
Why Save in These Plans?
One word: Taxes. Contributions to FSAs and HSAs aren’t taxable,* which reduces your taxable income. It’s like getting a discount on all your health care expenses.
*Currently, for residents of California, Alabama and New Jersey, HSA contributions and earnings are not excluded from state income tax. For more information, please consult your tax advisor.
What’s the Difference?
There are important differences between these accounts that you should know about before deciding to enroll.