HealthEquity: Our HSA and FSA bank partner
A health savings account (HSA) is only beneficial to members if they actually set up and use an HSA, so we have teamed up with HealthEquity®, the leader in HSA banking, to complement small business PriorityHSASM plans.
HealthEquity offers a number of services to ensure members reap the full benefits of an HSA:
- Simple, electronic setup
- 24/7 customer service
- Member-owned accounts
- Account balance transfers
- Integrated claims
- Visa Debit Cards linked to HealthEquity account to simplify provider payments and direct pay. Both are available to members at no extra cost.
- Educational materials for employers and members
How it works
Groups can choose to partner with HealthEquity when purchasing a PriorityHSA plan. When they do, all group members (including grandfathered and transitional members) can enroll with HealthEquity. Group members cannot opt in to HealthEquity if their employer doesn't partner with them.
There is no cost to employers or to members.
Most carriers have a banking partner, but Priority Health offers the service at no charge to employers, their employees or individual members.
How FSAs work
When your employees sign up with Priority Health’s flexible spending arrangement (FSA) administered by HealthEquity, they experience tax savings of up to 40% of every dollar they spend on health care deductibles, copayments, dental care, braces, glasses or contacts, child care and much more. They control their own health care expenses and keep a closer eye on their health, which may lead to reduced costs for you.
See if an FSA is right for you:
- Two options:
- FSA (or Limited-Purpose FSA with HSA plans), which can be used for eligible health care expenses, and
- Dependent care, which can be used for child care expenses for dependent children up to age 13
- Employees save money by setting aside tax-free dollars to pay for dependent care and/or certain health care expenses that are not paid for by their health insurance plan.
- You may offer just a health FSA, just a DCRA, or both, and employees may choose to enroll in either or both.
- You set the contribution limit for health care expenses; employees decide how much money to set aside.
- Employees can track their own account balances through their HealthEquity member portal or mobile app.
- For health FSAs: The entire annual amount an employee sets aside is available right away. If an employee set aside $600 ($50 a month) in a health FSA and has $600 in health care or medical expenses in February, they can be reimbursed the whole $600 from the FSA immediately. It doesn't matter that they have only contributed $100 of the $600 annual total so far.
- For DCRAs: The employee can only be reimbursed for what they have contributed so far. If they set aside $600 ($50 a month) in a DCRA account, and would like to make a withdrawal in February, they can only withdraw $100 since that's the amount contributed so far.
Under IRS rules, when an employee doesn't use their FSA/DCRA funds, they are returned to the employer.