Depending on which medical plan you enroll in, you can contribute to a Health Care Flexible Spending Account (FSA) or Health Savings Account (HSA) and/or receive a Health Reimbursement Account (HRA). Each type of account helps you pay for eligible medical, dental, vision, prescription drug, and some over-the-counter expenses.
Which medical plan pairs with each type of account?
FSA
$300 Deductible or Kaiser HMO: Health Care FSA
CDHP: Limited Purpose FSA
HSA
CDHP
HRA
$300 Deductible (grades 15–19 only)
Who administers it?
FSA
Smart-Choice
HSA
HealthEquity
HRA
HealthEquity
Who can contribute, and what is the 2022 contribution limit?
FSA
You only:
Up to $2,850
HSA
You:
Up to $3,650 (employee-only coverage)
$7,300 (employee + family coverage)
PayPal contributes:
Single: $500 (employee-only coverage)
Family: $1,000 (employee + family coverage)
HRA
PayPal will make a one-time payment of:
$300 (employee-only coverage)
$900 (employee + family coverage)
What can I use it for?
FSA
Eligible medical, dental, vision, prescription drug, and some over-the-counter expenses for you and your covered dependents throughout the year. If you enroll in the CDHP, it can only be used for eligible dental and vision expenses.
HSA
Eligible medical, dental, vision, prescription drug, and some over-the-counter expenses for you and your covered dependents throughout the year. Can also be used to pay for COBRA, retiree medical, and long-term care premiums.
HRA
Eligible medical, dental, vision, prescription drug, and some over-the-counter expenses for you and your covered dependents throughout the year.
Do I pay taxes on my contributions?
FSA
No, all contributions are tax-free.
HSA
No, all contributions, including those from PayPal, are tax-free.
HRA
N/A; only PayPal can fund this account.
Do I have to use the funds each year?
FSA
Yes. This is a use-it-or-lose-it account, but you can carry over up to $550 of unused funds to the next year. Any amount over this will be forfeited. You have until April 30, 2023, to submit a request for reimbursement for 2022 expenses.
HSA
No. Your account balance rolls over from year to year to help you save for future medical and retiree health care expenses. Plus, your HSA belongs to you—always. So, you take it with you if you leave the company or retire.
HRA
Yes. This is a use-it-or-lose-it account, so you’ll forfeit any remaining available funds you don’t use at the end of 2022 (or upon your termination if you leave the company prior to December 31, 2022). You have until April 30, 2023, to submit a request for reimbursement for 2022 expenses.
Things to know
For those enrolled in the PPO $300 (grades 15 – 19): You can have both a Health Care FSA and Health Reimbursement Account (HRA). However, the IRS prohibits participants from receiving reimbursements for duplicate claims in two separate programs.
For those enrolled in the CDHP: Since you’re eligible for the HSA, you can only have a Limited Purpose FSA and can only use your FSA to pay for eligible dental and vision expenses.
