Editor's Note: As employees think about their benefits elections for 2027, Penn State News is publishing a series of stories designed to help employees make informed choices.
UNIVERSITY PARK, Pa. — Penn State employees, depending on which health care plan they enroll in, have access to a health savings account (HSA) or a flexible spending account (FSA) through HealthEquity.
Health Savings Accounts and Flexible Spending Accounts
Health Savings Accounts (HSAs) are tax-advantaged member-owned accounts that allow participants to save pre-tax dollars for future medical expenses. Members can invest their accounts and the funds never expire. Flexible Spending Accounts (FSAs) are employer-sponsored health savings accounts that allow participants to set aside pre-tax money from every paycheck to pay for qualified medical expenses. FSA funds do not rollover at the end of the year and cannot be invested.
Those who elect to enroll in the Lion Advantage HSA plan will automatically have an HSA opened on their behalf through HealthEquity. Funds are contributed to the account on a tax-free basis and roll over from year to year.
Those who enroll in an HSA can make tax-free contributions to the account at any time throughout the year to be used for qualified health-related expenses. Penn State makes a once-a-year contribution to employees’ HSA accounts based on income level and plan type (individual or family).
Employees enrolling in the Lion Advantage Flex, Lion Traditional or those who may be enrolled in a plan outside of Penn State may choose to participate in the Health Care FSA. The Health Care FSA acts like an up-front loan, allowing enrollees to use tax-free contributions to cover eligible health-related expenses.
Dependent care FSAs
Employees, regardless of which health care plan they participate in — or if they patriciate in a Penn State health care plan at all — have the option to enroll in a Dependent Care FSA and use tax-free dollars to reimburse themselves for childcare-related expenses.
The Dependent Care FSA allows employees to set aside pre-tax funds to reimburse work-related, day care or elder care expenses for eligible dependents. Elections for both the Health Care and Dependent Care FSAs must be made each year during the annual benefits open enrollment period and cannot be changed unless there is a life-changing event.
Upcoming webinars
Penn State Human Resources is holding a series of informational webinars over the coming weeks, highlighting the range of benefits available to faculty and staff heading into the 2027 Benefits Open Enrollment period.
- Health Savings Account: To learn more about the Health Savings Account through HealthEquity, including how it works, who is eligible, how contributions and withdraws work and how to make the most of the account, access the webinar from noon to 1 p.m. on Oct. 23.
- Flexible Savings Accounts: The webinar focused on how to make the most out of your Flexible Savings Accounts will be held from 1:30 to 2:30 p.m. on Oct. 23.
Access the Zoom link for these informational sessions by visiting the presentation and webinars page on the 2027 Benefits Open Enrollment website.
More information about the Health Savings and Flexible Spending accounts offered through HealthEquity can be found by visiting the Penn State HR benefits website.