Health care accounts

Health care accounts, such as health savings and flexible spending accounts, allow you to contribute pre-tax dollars, lowering your taxable income and reducing your tax burden. 

Funds in your health care account can be used to cover a wide range of qualified medical expenses, including: 

• Doctor visits. 
• Prescription medications. 
• Dental care. 
• Vision expenses. 

ASU employees have three options: Optum health savings account, flexible spending account or the limited health care flexible spending account. 

Health Savings Account 

HSAs have similar tax advantages as FSAs. However, the HSA option is only available when you choose a high-deductible health plan. Like an FSA, you budget a certain amount for the year and make pre-tax contributions through payroll deductions. A big advantage of the HSA is that it can serve as a long-term savings tool for future medical expenses. 

Flexible spending account 

An FSA allows you to set a yearly budget for medical expenses and access those funds immediately to pay for eligible medical expenses. While your funds are available immediately, you make pre-tax contributions through payroll deductions throughout the year. Your FSA funds are not considered taxable income, which saves you money and reduces your tax liability for the year. 

Limited healthcare FSA 

If you are enrolled in an HDHP and HSA, you are ineligible for the flexible spending account benefit. However, a limited FSA allows you to use pre-tax contributions to cover eligible dental and vision care expenses.