The executive team is debating offering a standard group health insurance plan with a healthcare flexible spending account (FSA) or a high deductible group health insurance plan with a health savings account (HSA). They believe they understand the differences between the two group health insurance plans but are less clear on how FSAs and HSAs differ. Explain in clear language the differences between FSAs and HSAs so they can make an informed decision.

Personal Finance
13th Edition
ISBN:9781337669214
Author:GARMAN
Publisher:GARMAN
Chapter11: Planning For Health Care Expenses
Section: Chapter Questions
Problem 4LTAI
Question

The executive team is debating offering a standard group health insurance plan with a healthcare flexible spending account (FSA) or a high deductible group health insurance plan with a health savings account (HSA). They believe they understand the differences between the two group health insurance plans but are less clear on how FSAs and HSAs differ. Explain in clear language the differences between FSAs and HSAs so they can make an informed decision.

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