FSA, HSA and HRA Tax-Advantaged Accounts

Flexible Spending Accounts

Flexible Spending Accounts (FSAs) help you save money by allowing you to deduct tax-free dollars from your pay to cover certain health and dependent care expenses that you may incur throughout the year. Benefits eligible employees can participate in the following FSAs:

  • Standard Health Care FSA
  • Limited Purpose Health Care FSA - available to those enrolled in Plans C and N
  • Dependent Care FSA

Health Savings Account

A Health Savings Account (HSA) is a tax-advantaged savings account available when you enroll in a Qualified High Deductible Health Plan, Plan C or Plan N. You may use the money in your account to pay for eligible health expenses for yourself and your tax qualified dependents. You own your HSA and it is always portable, even if you retire or stop working for the State of Kansas.  KU, as the employer, contributes to the HSA account.  When you and/or your spouse earn HealthQuest rewards, you are eligible to receive additional contributions to your HSA.

Eligibility to Contribute to an HSA

The IRS sets the guidelines outlining your eligibility to enroll and contribute to an HSA. These rules apply only to you as the employee and not to any covered family members. For you to qualify for an HSA, you must meet ALL the following:

  • You must enroll in Plan C or N.
  • You cannot be enrolled in Medicare A or B, Medicaid or TRICARE
  • You cannot be claimed as a dependent on another person’s tax return.
  • You cannot be enrolled in other non-qualifying coverage.

Employees who are not eligible to contribute to a Health Savings Account (HSA) because of one of the above reasons will need to elect the HRA option.

Health Reimbursement Account

A Health Reimbursement Account (HRA) is a tax-advantaged savings account available if you enroll in Plans C, J, N or Q. KU, as the employer, contributes to the HRA account on your behalf. You may use the money in your HRA to pay for eligible health expenses. When you and/or your spouse earn HealthQuest rewards, you are eligible to receive additional contributions to your HRA. The HRA will end if you terminate employment and does not have a rollover provision.