Medical Spending Accounts

Health Savings Accounts and Flexible Spending Accounts work differently, so it’s important for you to understand how they work for you.Optum HSA - Five Stages of Health Saving and Spending

Health Savings Account (HSA)

A Health Savings Account (HSA) is a tax-advantaged account established to pay for qualified medical expenses for those who are covered under the Bronze Health plan. With the money from this account, you can pay for health care expenses. Any unused funds are yours to retain in your HSA and accumulate toward your future health care expenses or your retirement. 

Your enrollment in the Bronze plan as individual or family will determine the annual amount you are able to contribute. In addition, PetSmart makes a financial contribution to this account based on that enrollment. Your contribution plus PetSmart’s contribution are combined and cannot exceed the annual limit set by the Internal Revenue Service (IRS).   

What is an HSA? Our partners at Optum share this helpful video to explain. 

Review examples of HSA qualified medical expenses here.

Health Savings Account (HSA)
(money both from PetSmart and that you may contribute to for health care expenses that can be used today or saved for the future)

PetSmart Contribution:
$250 annually*

Associate Contribution:
You decide how much to contribute, up to $4,150 (2024)1


PetSmart Contribution:
$500 annually*

Associate Contribution:
You decide how much to contribute, up to $8,300 (2024)1

1Amount shown is the total IRS limit for the calendar year. Associate contributions are capped at $3,900/individual and $7,800/family (2024) as they receive employer contributions bringing the total to the IRS maximum. The IRS allows an additional $1,000 contribution if you are age 55 or older.

Your HSA account comes with an Optum Financial bank account. When you enroll in the HDHP, you’ll need to open an HSA with Optum Financial. Optum will send you a Welcome Kit. The amount you contribute to your HSA through payroll deduction will be deposited into your Optum Financial HSA. You’ll be issued an HSA debit card to pay for your eligible health care expenses. It’s that simple! Learn more about Optum HSA and review the Optum HSA Agreement here.

For more information about prescription drug options, see the Medical Spending Accounts section on the Forms and Resources page.

Flexible Spending Account (FSA)

Eligible full-time associates can elect a medical Flexible Spending Account (FSA). An FSA can help you pay for certain health care expenses with tax-free dollars. Your contributions to an FSA are made through pretax payroll deductions, so they reduce your taxable income. The goal amount you elect when you enroll can be used throughout the year to help pay for planned and unplanned eligible medical, dental, prescription drug, and vision expenses. Participation is entirely voluntary, and you don’t need to be enrolled in any other PetSmart plans to participate.

The Health Care FSA can help you pay out-of-pocket expenses that insurance doesn’t cover, such as copays, deductibles and coinsurance for medical, prescription drug, dental and vision services. You can also use this account to pay for health care services not covered by PetSmart’s health plans, such as LASIK surgery and teeth whitening. If you elect the HDHP with an HSA option, you cannot contribute to a Health Care FSA. 

If you are enrolled in the Bronze medical plan, with the Health Savings Account (HSA) you will have access to a Limited Purpose Health Care FSA.

A limited purpose FSA is a great companion to a health savings account (HSA), which you may use to pay for unforeseen qualified medical expenses. The limited purpose FSA is just that — it has a limited purpose. It reimburses you for dental and vision expenses. 

Read when and how to submit documentation for FSA reimbursement.