Health Savings Accounts, Health Reimbursement Accounts, and Flexible Spending Accounts work differently, so it’s important for you to understand how they work for you. To learn how they compare, refer to the HSA/HRA/FSA comparison chart.
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 UHC Choice Plus High-Deductible Health Plan (HDHP). With the money from this account, you can pay for health care expenses until your deductible is met. Then, in accordance with the terms of the HDHP, UHC pays for covered expenses in excess of your deductible. 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 HDHP 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). The current plan year details can be found on the Medical Plans Comparison Chart.
Review examples of HSA qualified medical expenses here.
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.
Health Reimbursement Account (HRA)
The Health Reimbursement Account (HRA) is an account that works side by side with a PPO plan. The HRA helps you pay for out-of-pocket expenses, like copays, deductibles, and coinsurance. Take your health care spending card with you anytime you go to the doctor, hospital, or pharmacy. Your HRA dollars may help cover all or part of your out-of-pocket expenses during the year, depending on the type of care and how much it costs.
Money in your HRA account will carry-over from year to year as long as you remain enrolled in a PPO plan. Moving out of the PPO plans will result in your HRA account being frozen until you return to a PPO plan or leave PetSmart and forfeit the remaining balance.
When you use an in-network vs. out-of-network provider or pharmacy:
- If you stay in-network, using the money in your HRA is simple and you won’t have to pay any money out of pocket.
- If you go out-of-network, you will need to file a claim with UnitedHealthcare on www.myuhc.com.
PetSmart contributes annually to the HRA on your behalf, when you are enrolled in an eligible PPO medical plan. The current plan year details can be found on the Medical Plans Comparison Chart.
Flex Spending Account (FSA)
Eligible full-time associates can elect Flexible Spending Accounts (FSAs). FSAs can help you pay for certain health care and dependent day 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. FSA plan effective date will be your 91st day; you must enroll during your initial enrollment window or the during annual open enrollment cycle to participate. This plan requires you enroll for every plan year during the annual open enrollment cycle.
FSA maximum annual contributions are set by the Internal Revenue Service (IRS). For plan year 2022, you may contribute up to $2,750 for the Health Care FSA; or up to $5,000 for the Dependent Day Care FSA. Important to note that highly compensated associates may have a limited maximum contribution that differs for Dependent Day Care FSA only. Contact the Benefits Team if you have questions about these limits.
There are two types of FSAs:
- 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.
- The Dependent Day Care FSA can help you pay for things like dependent care provided in your home or outside your home, such as child and elder day care.