Many employers are now offering high-deductible health plans (HDHPs) that can be paired with a flexible spending account (FSA) or health savings account (HSA). These healthcare payment options are becoming increasingly popular to help consumers manage the rising cost of healthcare. Both accounts allow consumers to set aside money for qualifying medical expenses such as deductibles, copays, and coinsurance; medical expenses not covered by insurance; and over-the-counter medications if your doctor has prescribed them.
However, there are several key factors for each type of account that can impact how you manage your healthcare costs.
Flexible Spending Accounts (FSAs)
- Set up by your employer
- Funded by pre-tax payroll deduction, employer contribution, or both
- Works with any type of health insurance, though health insurance coverage is not required
- Remaining balance is forfeited if not used by end of the year or the employer’s grace period
- Maximum contribution is $2,600 in 2017*
Health Savings Accounts (HSAs)
- Set up by either you or your employer
- Must be paired with a HSA-qualified high-deductible health plan (HDHP)
- Contributions can only be made while you’re covered by a HDHP
- Funds can be used in the future, even if you’re no longer on the plan
- Maximum contribution is $3,400 for an individual and $6,750 for a family in 2017**
The CareCredit healthcare credit card can help fill the gap between these accounts and the rest of your budget. CareCredit can be used to pay for deductibles, copays and out-of-pocket costs not covered by insurance. When you have medical expenses that exceed the money you’ve set aside in your FSA or HSA, you can use your CareCredit credit card to help pay for the outstanding balance.‡
When you receive a bill after you leave your doctor’s office, you can pay online with your CareCredit credit card through CareCredit’s Pay My Provider. With this secure online healthcare payment solution, you can choose a special financing option‡ on purchases of $200 or more and pay over time with convenient monthly payments using your CareCredit credit card. When used along with your FSA or HSA funds, CareCredit can help you fit healthcare expenses into your budget.
‡ Subject to credit approval. Minimum monthly payments required. See carecredit.com for details.
This content is subject to change without notice and offered for informational use only. You are urged to consult with your individual business, financial, legal, tax and/or other advisors [and/or medical providers] with respect to any information presented. CareCredit, Synchrony and any of its affiliates (collectively, “Synchrony”) make no representations or warranties regarding this content and accept no liability for any loss or harm arising from the use of the information provided. Your receipt of this material constitutes your acceptance of these terms and conditions.