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Pre-tax Medical Options
Pre-tax Medical Options
Medical savings accounts allow employees to use pre-tax dollars for eligible medical expenses while lowering taxable income. Three medical savings plans are available to employees who are enrolled in PEHP’s medical plans:
FSA (Flex Spending Account) - Associated with traditional medical plans.
Dependent Care FSA - Available to all PEHP members.
HSA (Health Savings Account) - Associated with high deductible medical plans for those who qualify under federal regulations.
HRA (Health Reimbursement Arrangement) - Associated with high deductible medical plans when employees do not qualify for an HSA.
For more details on all of PEHP’s medical and dependent care savings accounts, contact PEHP’s Flex/HSA/HRA Department at (801) 366-7503 or (800) 753-7703
Flexible Spending Account (FSA)
Flexible Spending Account (FSA)
Associated with the Traditional Medical Plan.
PEHP 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 follow when using the benefit.
There are two variations of PEHP FLEX$ for medical expenses – some employers offer a $660 rollover, which allows you to move some unused funds into the next plan year. The other option offers a 75-day grace period by which all remaining funds must be used, or they will be lost.
Check with your employer or call PEHP at 801-366-7503 or 800-753-7703 to see which plan is available to you.
Important Information
A FLEX$ 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.
For more details on all of PEHP’s medical and dependent care savings accounts, contact PEHP’s Flex/HSA/HRA Department at (801) 366-7503 or (800) 753-7703
Health Savings Account (HSA)
Health Savings Account (HSA)
Associated with a high-deductible health plan (HDHP), such as the STAR Plan and Consumer Plus Plan.
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. A list of qualified medical expenses (QME) can be found here.
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 a health savings account (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.
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 and Consumer Plus Plan.
For more details on all of PEHP’s medical and dependent care savings accounts, contact PEHP’s Flex/HSA/HRA Department at (801) 366-7503 or (800) 753-7703
Health Reimbursement Arrangement (HRA)
Health Reimbursement Arrangement (HRA)
Associated with a high-deductible health plan (HDHP), such as the STAR Plan and Consumer Plus Plan.
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. You can also submit claims and be reimbursed by 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 or the Consumer Plus Plan.
For more details on all of PEHP’s medical and dependent care savings accounts, contact PEHP’s Flex/HSA/HRA Department at (801) 366-7503 or (800) 753-7703
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