If the Health Savings Account (HSA) Is Going Away, Are There Other Ways to Save Dollars Tax-Free for Healthcare Expenses?

Yes. While you won’t be able to continue contributing to an HSA once your plan switches away from a high-deductible health plan (HDHP), there are other tax-advantaged options for saving and paying for healthcare expenses.

Flexible Spending Account (FSA)

Many employers offer an FSA, which lets you set aside pre-tax dollars to pay for eligible healthcare expenses such as:

• Copays and deductibles
• Prescription drugs
• Certain over-the-counter items
• Dental and vision expenses

Key differences from HSAs

• FSAs are typically “use it or lose it” — funds usually must be spent by the end of the plan year (some plans allow small rollovers or short grace periods).
• FSAs are employer-owned, not individually owned like HSAs.
• You don’t need to be enrolled in an HDHP to participate.

Existing HSA Funds

Even though you can’t contribute new money once the HSA-qualified plan ends, any funds already in your HSA remain yours. You can continue using those dollars tax-free for qualified medical expenses, even in future years.

Bottom line

• FSAs are the primary alternative for ongoing pre-tax savings.
• Existing HSA balances remain available to you for future healthcare expenses.

This combination allows you to keep benefiting from tax-free healthcare savings, even after your HSA contributions stop.