Maximizing Your Healthcare Spending Account
Q: What happens if I don’t use the funds in my HCSA?
A: If you don’t use your entire HCSA balance in the current plan year, you can carry it forward for one additional year. After that, any unused portion from the previous year will be forfeited and returned to the plan.
Anna had been part of the health benefits plan for several years, and this time she was determined to make the most of her $500 Healthcare Spending Account (HCSA), which was deposited in July. She knew the HCSA could be used for eligible out-of-pocket medical expenses not covered by her primary plan.
As the plan year came to a close, Anna realized she hadn’t used any of her HCSA funds. Her routine checkups and prescriptions were fully covered, and she hadn’t needed any major treatments. She began to worry that the balance would disappear if left unused.
After checking the plan details, Anna was relieved to learn that HCSA funds can be carried forward for one additional year. However, if she didn’t use the funds by the end of that second year, they would be forfeited and returned to the plan.
With this in mind, Anna looked into eligible expenses she’d been putting off. She purchased a new pair of prescription glasses and booked a chiropractic appointment—both qualifying under the HCSA.
By the end of the year, Anna felt confident and empowered. She hadn’t just avoided losing the funds—she had used them in a way that genuinely improved her well-being. It was a reminder that staying informed can help members make the most of every benefit available to them.