HSA Frequently Asked Questions (FAQ)

C. Healthcare Flexible Spending Accounts (FSA)

Comparing HSA and Healthcare FSA (2022 Plan Year)

1. The university also offers a Healthcare FSA. Can I have both the Healthcare FSA and a Health Savings Account (HSA)?

Yes. When you have both an HSA and a Healthcare FSA:

  • Your FSA funds can only be used for dental and vision expenses until your annual HDHP deductible is met. Once you meet your deductible, and provide proof of meeting your deductible to Nyhart, you can begin using your Healthcare FSA funds for medical and prescription expenses from that date forward.
  • You will receive an IU Benefit Card to use for both accounts. This debit-type VISA card is “stacked” meaning funds will automatically be drawn from your HSA when used at medical or pharmacy providers, and from your FSA when used at dental and vision providers. Once you have provided proof of meeting your annual HDHP deductible is to Nyhart, the card will automatically begin pulling all expenses from your FSA first, then from your HSA once your FSA funds are exhausted. You also have the option to pay for expenses out-of-pocket, then submit claims for reimbursement to Nyhart.

Remember to adjust for this limitation when calculating your HSA and Healthcare FSA pledges for the year.

2. My spouse and I both work for IU. Can one of us have an HSA and the other a Healthcare FSA?

No. If your spouse is enrolled in the Healthcare FSA through IU or a HRA/FSA through another employer that is unrestricted (and the account could be used to cover your HDHP deductible), you are not eligible to make tax-free contributions to an HSA.

3. Who will keep track of when I reach my annual deductible and if I am eligible to pay medical expenses out of my FSA?

For the Anthem PPO HDHP, Anthem tracks your deductible. For the IU Health HDHP, IU Health Plans tracks your deductible. You can review the progress towards your deductible using the Explanation of Benefits (EOB) statements mailed to your home, or by logging in to Anthem or IU Health’s web portal or Castlight.

Once you meet your annual HDHP deductible, and provide proof of meeting it to Nyhart, your IU Benefit Card will automatically draw all expenses from your Healthcare FSA first, then from your HSA once your FSA funds are exhausted. You also have the option to pay for expenses out-of-pocket, then submit claims for reimbursement to Nyhart.

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