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FSA is great if you plan to change employers, there is no clawback if you empty the account in January and change employers in February. I'm not sure why this w
by pnutjam 7y ago
FSA is great if you plan to change employers, there is no clawback if you empty the account in January and change employers in February. I'm not sure why this was never considered, but it's one of the few places an employee can benefit.
- lotsofpulp 7y agoThere is absolutely no benefit of an FSA over an HSA, other than to pad the coffers of whoever gets the leftover FSA funds if the participant can't accurately forecast their spending. FSA's simply should not exist.
- pnutjam 7y agoTrue, but they are either or and a High deductible plan is a disaster for many people.
- lotsofpulp 7y agoYes, I forgot about that. But generally, since the expected cost of one's healthcare remains the same regardless of what kind of insurance plan they choose, the difference in premiums for a high deductible and low deductible plan is just the present value of the expected additional costs the insurance company has to pay because of the low deductible. In other words, you can pay more via a higher monthly premium now, and pay less when you pay for the healthcare. Or pay less for the premium now, and pay more when you pay for the healthcare. Otherwise, the insurance company wouldn't be in business for long. The difference is who gets to keep the investment earnings from the savings kept until you need healthcare.
- pnutjam 7y agoFSA gives you the entire year's contribution up front, HSA does not.