Health Spending Accounts

FLEX$ is a flexible spending account that saves you money by setting aside a portion of your pre-tax salary to pay eligible expenses.

There are two different FLEX$ accounts – one for medical expenses and another to help with dependent childcare costs – and each has important rules to keep in mind when using the benefit.

There are two variations of FLEX$ for medical expenses – some employers offer a rollover amount, which allows you to move some unused funds into the next plan year. The other option offers a 75-day grace period by which all remaining funds must be used, or they will be lost.

Check with your employer or call PEHP at 801-366-7503 to see which plan is available to you.

Important Information

• A FLEX$ account is a great option to save for expenses if you’re not eligible for an HSA.
• If you have an HSA, you can have a limited FLEX$ account to pay for dental and vision expenses only.
• If you sign up for a FLEX$ account, PEHP will issue you a Mastercard to use as payment for eligible expenses.

An HSA is like a flex account, but better. You never have to worry about forfeiting HSA money you don’t spend - it carries over year-to-year and employer-to-employer. Money goes in tax-and-FICA-free, grows tax-free, and can be used for eligible expenses tax-free. Your employer may help fund your HSA account.

Use it to save for retirement and make penalty-free withdrawals after age 65. Contribute to your HSA with pre-tax money just like a 401(k), but unlike a 401(k), your HSA contributions are exempt from FICA.

To be eligible for an HSA, the following things must apply:

• You must enroll in an HSA-eligible medical plan, such as the STAR HSA Plan
• You’re not covered by a general-purpose flex account (FSA) or HRA or the balance is $0 before you open an HSA
• You’re not covered by another health plan (unless it’s another HSA-qualified plan)
• You’re not covered by Medicare or TRICARE
• You’re not a dependent of another taxpayer

Health Equity administers your HSA account. Health Equity will issue you a VISA card to pay for eligible expenses or you can submit your receipt to them and be reimbursed from your HSA account.

Learn more.

An HRA is an employer-paid fund that reimburses you for qualified medical expenses for you and your dependents. The employer contribution is made twice per plan year. Funds are available by the end of July and January. However, unlike with an HSA, you can't make personal contributions to an HRA.

PEHP will issue you a healthcare MasterCard from which to pay medical expenses or you can submit claims and be reimbursed from your HRA.

If you are ineligible for an HSA, your employer contribution will be deposited into an HRA if you choose a high-deductible health plan (HDHP), such as the STAR HSA Plan.

For more information about FLEX$, HSAs, or HRAs, call 801-366-7503.