Connecticut State Office of the Healthcare Advocate

NOTICE: The Office of the Healthcare Advocate is currently closed to public visitors as a protective measure for the safety of customers and staff. We will continue to provide services by email and telephone. The Office of the Healthcare Advocate may be contacted by utilizing our on-line services on our website, by calling our main number at 1-866-466-4446 or by emailing us at healthcare.advocate@ct.gov

Difference Between FSA and MSA

FSA

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A "Flexible Spending Account," or FSA, is a benefit plan that allows companies to give their workers the opportunity to pay for their out-of-pocket health and dependent care costs on a pre-tax basis, which -- over time -- lowers payroll-related taxes for both the employer and employees. An FSA is a qualified benefit plan subject to IRC Section 125 and ERISA. FSAs are typically a part of a Flexible Benefit Plan. There are two distinct types of FSAs; one for paying for unreimbursed medical services, (e.g. deductibles, co payments, or coinsurance) and another type that reimburse employees for child care or elder care services.

MSA

A "Medical Savings Account," or MSA, is a tax-deferred trust or custodial account in which you set aside money to pay for your routine, out-of-pocket health-care expenses and to build up savings for your future medical costs. You or your employer contributes money to the MSA throughout the year or by making a lump-sum payment at the beginning of the year. An MSA must be paired with a major medical health plan (sometimes called a "catastrophic plan") that has a high deductible.

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