Saving and Spending Accounts

Novant Health offers three tax-advantaged accounts through Wex and encourages you to take full advantage of the money-saving potential they offer. You can enroll as a new hire, during open enrollment or if you have a qualifying life event.

Key features

Tax-free money

Money goes in tax-free* and comes out tax-free when it’s used for eligible expenses.

Convenient payroll deductions

Contribute to your accounts easily and effortlessly.

Helpful budgeting tool

Plan for upcoming expenses by setting aside money each paycheck.

2025 tax-advantaged accounts

Health Reimbursement Account (HRA) Administered by Cigna

Available to team members who enroll in a Cigna medical plan.

Details

Healthcare Flexible Spending Account (FSA) Administered by Wex

Available to all benefit eligible team members.

Details

Dependent Care Flexible Spending Account (FSA) Administered by Wex

Available to all benefit eligible team members.

Details

Health Savings Account (HSA) Administered by Wex

Available only to employees who enroll in the HDHP plan.

Details

What’s eligible?

The IRS determines what expenses can be paid with money from an HRA, HSA or FSA. Learn more about the eligible expenses for each account:

• HSA
• Health Care FSA
• Dependent Care FSA

How much could you save?

Here’s an example. Let’s say Tom decides to set aside $2,000 in an HSA or FSA for the year. Normally, on that money, he’d pay $480 in federal income tax, $100 in state income tax and $153 in payroll tax. So, by contributing that $2,000 to his HSA or FSA, he’ll save $733 in taxes for the year.

Without an HSA or FSA, Tom would pay …	Savings
24% in federal income tax………………………………………………………..	$480
5% in state income tax*………………………………………………………….	$100
7.65% in payroll tax…………………………………………………………..…….	$153
His total tax savings for the year with an HSA or FSA …………...	$733

This hypothetical is for educational purposes only. Dollar amounts or savings will vary depending on income, state and city tax rules and other factors. Please consult a tax, legal, or financial advisor about your own personal situation.

*HSA contributions are not subject to federal income tax, but are currently subject to state income tax in CA and NJ. Consult with your tax advisor to understand the potential tax implications of enrolling in an HSA and/or FSA.

With the Premier, Standard and Premium plans, you will receive a Health Reimbursement Account (HRA), administered by Cigna, to help cover the costs of your health care.

HRA features

• Well-being pays off. Team members earn money into their HRA through participation in Novant Health well-being programs.
• Works like a bank account. You can use HRA dollars for your eligible health care expenses. Cigna will automatically check your HRA balance to pay for claims before you ever receive a bill from your providers office. Use your HRA debit card to spend the money on:
  • Prescription drugs
  • And more
• Automatically applied to your claims. Money in your HRA is automatically applied to your out-of-pocket expenses associated with your medical plan. Please note that HRA cannot be used toward dental and vision expenses.
• Unused money carries over at the end of each year. You cannot take the money with you if you leave the company.
• Can be paired with a Health Care FSA. You can set aside your own pre-tax money in an FSA to help cover health expenses that exceed your HRA amount.

With the HDHP, you’re eligible to open and contribute money to a Health Savings Account (HSA) through Wex. The HSA is a tax-free savings account that you own. You can choose to spend the money right away as eligible health expenses come up or save it for the future — you can even use it in retirement.

Get a triple tax advantage!

*HSA contributions are not subject to federal income tax, but are currently subject to state income tax in CA and NJ. Money in an HSA can be withdrawn tax-free as long as it is used to pay for qualified health-related expenses. If money is used for ineligible expenses, you will pay ordinary income tax on the amount withdrawn, plus a 20% penalty tax if you withdraw the money before age 65.

** HSA paycheck contributions are pro-rated for new hires.

Using a Flexible Spending Account (FSA) for health care expenses is like getting a discount because you’re paying with tax-free money.

The Health Care FSA is available to team members who enroll in the Premium, Standard, Premier Plan or do not elect medical coverage. This account can be used for all eligible medical, dental and vision expenses.

With this account, you can contribute up to $3,300 for the year through pre-tax payroll deductions. Note: You must enroll in the Health Care FSA each open enrollment if you want to contribute the next year, even if you already have an account.

Child and elder care can present significant expenses for you. A Dependent Care Flexible Spending Account (FSA) allows you to pay less for child and elder care expenses by using tax-free dollars.

A dependent care FSA is available to benefits eligible team members. You can contribute up to $5,000 for the year through pre-tax payroll deductions to help cover your eligible dependent care expenses, including childcare for children up to age 13 and care for dependent elders. Note: You must enroll in this account each open enrollment if you want to contribute the next year, even if you already have an account.