Question

What are the key differences between an HSA and FSA?

What is Workers’ Compensation Insurance and how does it function? What organizational department “generally” manages this and most other liability-related insurance claims…HR or Finance?

Answer 1

Answer:

HSA stands for Health savings Accounts and FSA stands for Flexible spending arrangement. However both plans allows people to set aside money for health care costs for the people who have health insurance. These health care costs are known as Qualified expenses.Both accounts shall have tax benefits , although they aren't equal and same.

Some of the key differences are listed below.,

Differences	Health savings account (HSA)	Flexible spending arrangement (FSA)
Eligibility	To be eligible under this account a High deductable health plan is must.	No such Requirement
Contribution Limits	For the Curreny year the Limits of contribution are: $6900 for Families & $3450 for indivuduals.	The limit for current year contribution is at $2650
Changing Employement	In HAS it will be allowed to have same account even after changing the employement.	Where under FSA you will loose your account with your employement except in the FSA continuation through COBRA.
Ability to Change Contribution	Changes can be made at anytime during the year.	Chnages can be done only at the time of open enrollment or with a change in employment or Family status.
Carry Forward	Unutilised balances can be carry forwarded into next years.	Only with some expection you can carry forward the balances.
Effect on taxes	Contribution are taxed and deductable from pay. However growth and distributions are tax free.	Contributions are pretax, and distributions are tax free.

Workers Compensation Insurance:

This insurance is the insurance that covers all medical and rehabilitation costs and lost wages for employees injured at work as equired by law in United States.All most all states are require, employers to purchase an insurance policy to handle their statutory obligations to those workers who are injured at workplace.So, when an employee gets injured at the workplace of the employer, he will get the compensation from the employer for the medical supports and even the lose of pay. This is inorder to not get sued by the employee.

If the organisation is large enough to have a Seperate HR department then it is resposible for the treating them fairly and providing proper medical support, in any other business organisations the Finance department will take care of the Liability related to insurance claims.