Between doctor visits, prescriptions, glasses, dental care and more, health-related expenses can add up. Did you know that Health Flexible Spending Accounts and Health Savings Accounts let eligible employees set aside money for qualified health care expenses while also saving on taxes?

With Open Enrollment for 2027 beginning Oct. 29, now is a good time to learn how these accounts work, consider if either option may be right for you and think about how much you may want to contribute for the year ahead. 

Health Flexible Spending Account (FSA)

Think of a Health FSA as a pot of money you set aside from your paycheck before taxes to help pay for eligible health expenses throughout the year. Depending on the expense, you can use it for things like copays, prescriptions, dental and vision care, and many over-the-counter health products. Contact solution, blood pressure monitors, cold medicine - you'd be surprised at how many expenses are eligible. Check the FSA eligible expenses guide to see what types of health-related purchases are covered by an FSA.

Keep in mind: Health FSAs have annual contribution and carryover limits, so it’s important to estimate your expected eligible expenses when deciding how much to contribute.  

Please note: A Health FSA is different from a Dependent Care FSA, which allows you to set aside pre-tax money for qualified childcare or adult dependent care expenses. Both of these accounts require re-enrollment every year during Open Enrollment. 

Health Savings Account (HSA)

An HSA also lets you set aside money for eligible health expenses and has federal tax advantages, but there are some important differences. At UC, HSAs are available to eligible employees enrolled in the HealthSavings+ medical plan. The money in your HSA rolls over from year to year and can help you pay for health care expenses now or in the future. Plus, the money you save is yours to keep and can build up from year to year.

Start Planning for Open Enrollment  

Think about the out-of-pocket health care expenses you and your eligible family members typically have during the year, including prescriptions, copays, dental and vision expenses, and eligible health-related purchases. Estimating those costs now can help you make a more informed decision about how much to contribute. 

Open Enrollment for 2027 benefits begins at 8 a.m. Thursday, Oct. 29, and ends at 5 p.m. Friday, Nov. 20. 

• Learn more about the Health FSA → 
• Learn more about the HSA → 

Still have questions about these accounts? Stop by a virtual or in person help desk session during Open Enrollment. Look for more information on these resources in the coming weeks.