Medical Savings Accounts: FSAs, HSAs, and HRBs Comparisons and Options

Most of us have at least some medical bills each year. And with the rising cost of medical care, they can add up even when you have health insurance.

The good news is, most people with employer health plans have access to tax-deductible medical savings accounts. HSAs, FSAs, and HRAs are different accounts that help you pay for healthcare costs tax-free.

Any medical savings account is better than none. But each type of account has essential differences.

Below, we’ll compare the difference between a health care FSA and an HSA (and describe an HRA). With this information, you can make the most of the account available to you.

HSAs and Medical FSAs: Similarities and Differences

An HSA is a Health Savings Account, and an FSA is a Flexible Spending Account (aka Flexible Spending Arrangement).

(While this article is discussing the Healthcare FSA, you can learn about the dependent care FSA here.)

The HSA and FSA are both medical savings accounts offering tax savings with some additional similarities.

But understanding their differences is crucial because it affects how you select and use each one.