Health Savings Accounts (HSA), Health Reimbursement Accounts (HRA) and Flexible Spending Accounts (FSA) are accounts where you put aside money to use on health care expenses. Vermont Health Connect advises employers to contact a tax advisor about how these benefits work with Vermont Health Connect plans.
Here is a link to the IRS publication about these accounts, as well.
It's important to know:
- HSAs only work with high-deductible health plans. Vermont Health Connect offers several of these plans and will be able to tell you which plans work with an HSA. You can also call your insurance carrier to find out which plans work with an HSA.
- The money you put into an HSA is tax-deductible.
- There is a limit to how much you can contribute to an HSA each year. For 2026, it is $4,400 for individual plans and $8,750 for family plans. If you are 55 and older, you can do an extra $1,000 in “catch-up” contributions.
- If you are on Medicare, you cannot contribute to an HSA. But, you can use your money in your HSA. This handout answers questions about HSAs and Medicare
- If you are enrolled in Medicaid, you cannot make or receive HSA contributions. You can maintain an existing balance.
You can use your HSA money whenever you want for medical and dental expenses that the IRS lists in Publication 502. Talk to a tax preparer if you have questions about HSAs and your tax return.
The most you can contribute to a FSA in 2026 is $3,400.
