How to Save on Healthcare Costs in Pennsylvania with an HSA or FSA
Brittany Hautz, Licensed Professional Counselor
Mental Health Trauma Specialist in Pennsylvania
Healthcare costs can add up quickly, especially when you’re managing multiple physical conditions, mental health care, and prescription medications. One often underused way to reduce the financial strain is by taking advantage of tax-advantaged healthcare accounts, specifically Health Savings Accounts and Flexible Spending Accounts.
This post breaks down what HSAs and FSAs are, how they differ, and how you can use them strategically to lower your overall healthcare costs.
What is a Health Savings Account (HSA)?
An HSA is a tax-advantaged savings account available to people who are enrolled in a high-deductible health plan. It’s designed to help you save for qualified medical expenses now and in the future.
Key Features of an HSA
Triple tax advantage!
Contributions are tax-deductible or pre-tax
Money grows tax-free
Withdrawals for qualified medical expenses are tax-free
You own the account (even if you change jobs or insurance plans)
Funds roll over year to year (there is no “use it or lose it” rule)
HSAs can function like a long-term savings or investment account once a balance threshold is met
Common HSA-Eligible Expenses
Therapy and mental health services!
Medical, dental, and vision care
Prescription medications
Copays, deductibles, and coinsurance
Certain over-the-counter medications
Specific medical supplies
What Is a Flexible Spending Account (FSA)?
An FSA is an employer-sponsored account that allows you to set aside pre-tax dollars to pay for eligible healthcare expenses.
Key Features of an FSA
Contributions are pre-tax, reducing your taxable income
The full annual amount is available at the start of the plan year
Typically must be used within the plan year (some plans allow a grace period or limited rollover though)
Funds generally do not follow you if you leave your employer
Common FSA-Eligible Expenses
Therapy, psychiatry, and other outpatient care!
Copays and prescriptions
Dental and vision services
Medical equipment and supplies
How HSAs and FSAs Help You Save Money
1. You Pay with Pre-Tax Dollars
When you use HSA or FSA funds, you’re paying for healthcare with money that was never taxed. This can effectively reduce the cost of care by 20–35%, depending on your tax bracket.
2. Lower Out-of-Pocket Costs for Ongoing Care
If you regularly pay for therapy, medications, or other recurring services, these accounts allow you to plan ahead and smooth out costs across the year.
3. HSAs Can Support Long-Term Care Needs
HSAs are especially powerful for people who…
Expect ongoing or future healthcare expenses
Want flexibility across jobs or self-employment
Prefer a savings-based, autonomy-centered approach to care
Unused HSA funds can continue growing and be used later (even into retirement) for qualified medical expenses!
Practical Tips for Using HSAs and FSAs Strategically
Estimate realistically. For FSAs, avoid over-contributing unless you’re confident you’ll use the funds
Track eligible expenses. Many people underuse their accounts simply because they don’t realize what qualifies
Pair HSAs with self-pay or out-of-network care when eligible
Save receipts if using an HSA (you can reimburse yourself later)
Check employer benefits annually, as FSA rules can vary by plan
Accessibility and Choice
HSAs and FSAs do not solve every barrier to care, but when available, they can meaningfully reduce financial pressure and increase choice.
Using pre-tax dollars for healthcare is one way to keep more resources available for what supports your overall life and wellbeing.
If you’re unsure whether an HSA or FSA is right for you, reviewing your insurance plan and speaking with a benefits specialist can help clarify your options.
If you’re in Pennsylvania and seeking mental health services, let’s schedule a free initial video call.
Explore my website to learn more here!
This post is for educational purposes only and is not tax or legal advice.
