An arrangement you set up through your employer to pay for many of your out-of-pocket medical expenses with tax-free dollars. These expenses include insurance copayments and deductibles, and qualified prescription drugs, insulin and medical devices. You decide how much of your pre-tax wages you want taken out of your paycheck and put into an FSA. You don’t have to pay taxes on this money. Your employer’s plan sets a limit on the amount you can put into an FSA each year. There is no carry-over of FSA funds. This means that FSA funds you don’t spend by the end of the plan year can’t be used for expenses in the next year. An exception is if your employer’s FSA plan permits you to use unused FSA funds for expenses incurred during a grace period of up to 2.5 months after the end of the FSA plan year. (Note: Flexible Spending Accounts are sometimes called Flexible Spending Arrangements.)
The Affordable Care Act (ACA) has had two major goals: make health insurance more affordable and make health insurance more accessible. While subsidies have helped make health insurance more affordable for many, healthcare marketplaces have been the leading force behind making it accessible. By using a marketplace, you can view, compare, and purchase health insurance with confidence.
Whether you use a federal, state, or private marketplace, you have access to all of the health insurance plans available in your area. For more information about healthcare marketplaces (often called health insurance exchanges), why it is important to use them during the Open Enrollment Period, and how to avoid a tax penalty next year, read on.
When looking for your next health plan, an HSA can be an additional option for affordable medical expenses.
As you begin shopping for a new health plan, HSAs can be affordable additions for many individuals and families. A Health Savings Account, or HSA, is a tax-deductible savings account that often accompanies high-deductible health insurance plans. With premiums set at low rates, this type of health insurance can be beneficial for healthy Americans looking for coverage.
A medical marketplace makes it possible for you to find an affordable health plan with the coverage you need. These plans will meet your requirements for coverage and help you manage your medical costs. Once you know the essentials of these plans, you can find coverage for you and your family through federal, state, and private marketplaces.