Can I have an FSA with a high deductible health plan?

Asked by: Meaghan Bernier  |  Last update: October 7, 2025
Score: 4.2/5 (10 votes)

Employees can open an FSA regardless of if they have an HDHP or not. Self-employed individuals cannot open an account. Employees are eligible if they have an HDHP. The deductible must be at least $1,650 (self) or $3,300 (family).

Can I have health insurance and an FSA?

Let's break down some rules about FSAs and health insurance:

You cannot cover costs paid by your insurance plan with an FSA as well. You cannot use more than one FSA for the same medical bill. Expenses paid for with an FSA cannot be claimed on an annual income tax return. You cannot use an FSA for insurance premiums.

Can you have both an FSA and HSA?

So the answer is, no, you cannot have an HSA and FSA account at the same time.

Why isn't my high deductible plan HSA-eligible?

The most common reason for high deductible plans to fail the HSA test is that they have an associated pharmaceutical plan that is not subject to the same deductible. The pharmaceutical plan might just have co-pays from the first dollar of spending, making the entire plan ineligible for HSA.

Can I pay for my gym membership with my FSA?

Gym memberships. While some companies and private insurers may offer discounts on gym memberships, you generally can't use your FSA or HSA account to pay for gym or health club memberships. An exception to that rule would be if your doctor deems fitness medically necessary for your recovery or treatment.

How does a High-deductible Health Plan (HDHP) work?- Kaiser Permanente

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Does FSA cover peloton membership?

You can't directly pay for membership costs with your HSA/FSA card, but if you receive a Letter of Medical Necessity (LMN) from Truemed or an applicable licensed medical professional and are eligible for reimbursement, you may be able to apply your HSA/FSA funds to the cost of a Peloton Membership while the LMN is ...

What are the disadvantages of a high-deductible health plan?

Disadvantages of a high deductible health plan
  • You pay all costs for nonpreventive care until you've paid the high deductible.
  • Possible unplanned high out-of-pocket costs when you receive covered services.
  • Worries about money might influence your health care decisions.

Is an HSA or FSA better?

Bottom line: Both HSAs and FSAs provide financial benefits for managing health care expenses. HSAs offer more flexibility and long-term growth potential, making them a valuable tool for future financial planning. Learn about HSA options from Aetna.

What is the 12 month rule for HSA?

It means you must remain eligible for the HSA until December 31 of the following year. The only exceptions are death or disability. If you violate the testing period requirement, your ineligible contributions become taxable income.

Can I have a FSA with a HDHP?

Employees can open an FSA regardless of if they have an HDHP or not. Self-employed individuals cannot open an account. Employees are eligible if they have an HDHP.

Is everlywell FSA eligible?

Generally speaking, the answer is “yes.” Telehealth services, like Everlywell virtual care visits, are considered eligible for reimbursement with FSA/HSA according to the FSA store.

Can I have an FSA if I'm on my parents' insurance?

Yes, the FSA does not require that your dependents be covered under your health insurance plan. You can use your account to pay for eligible health care expenses for your family, regardless of the health insurance plan in which they are enrolled.

Who cannot participate in an FSA?

Some employees are not eligible to enroll in an FSA. Though there are exceptions, self-employed employees and shareholders who own 2% or more in an S corporation, LLC, LLP, PC, sole proprietorship or partnership are generally ineligible for FSAs. Employees with HSAs cannot enroll in an FSA.

Is healthcare FSA worth it?

A health care FSA can be useful for people with any level of health costs because it provides access to the entire annual amount elected, beginning on the very first day of the plan year for medical, dental, and vision costs. So, if you have an unexpected large expense, you can access the funds you need.

Can you use FSA for dental?

You can use funds in your FSA to pay for certain medical and dental expenses for you, your spouse if you're married, and your dependents. You can spend FSA funds to pay deductibles and copayments, but not for insurance premiums.

What are the disadvantages of HSA?

Weak earnings and investment limits: Interest rates on HSA accounts may be low and some trustees charge a monthly fee if your balance drops below a certain threshold. Minimum balance requirements may apply before you can invest; investment options may be limited, and investments are not insured.

Can you have an HSA and FSA in the same household?

Internal Revenue Service (IRS) rules clarify that you can't contribute to a Health Savings Account (HSA) and a Flexible Spending Account (FSA) in the same plan year.

Who should avoid a high deductible health plan?

While these types of plans can be beneficial to those who are relatively healthy, they can be very expensive for those who have chronic conditions or who experience a medical crisis. It's important to carefully consider your expected medical expenses before choosing to participate in a high deductible health care plan.

Is it better to have HDHP or PPO?

HDHPs can be a good form of insurance for the young and healthy — especially if your employer offers you HSA contributions. But for anyone with significant medical expenses, an upcoming surgery, or a serious health condition, a PPO could be a better fit because of the lower deductible.

Why would someone want a high deductible health plan?

Savings tip: HDHPs have lower premiums. That means you pay less every month for your plan. Plus, you're covered for many preventive services and screenings at no cost without having to meet your deductible. When the plan year begins, you pay the full cost of your care until you reach a fixed dollar amount.

Can I use FSA to pay for gym membership?

Can you use flexible spending account (FSA) funds to pay for a gym membership or exercise classes? Typically, no. The Internal Revenue Service (IRS) usually doesn't allow funds from an FSA to pay for membership dues at health clubs or gyms.

Does FSA cover Botox?

Botox injections are typically not eligible for reimbursement with an FSA, as they are primarily used for cosmetic purposes.

Can you use FSA for vitamins?

Are vitamins FSA/HSA eligible? You want to be careful when trying to buy vitamins with your FSA or HSA. They are not always deemed a qualified expense. If your vitamins are not prescribed by a healthcare professional or used to treat a specific condition, your purchase most likely won't be FSA or HSA eligible.