Overview
Inova offers you the following accounts and encourages you to take full advantage of their money-saving potential. You can enroll in them on the Inova Benefits Center website as a new hire, during Benefits Annual Enrollment, or if you have a qualifying life event. Note: You must enroll in these accounts each Benefits Annual Enrollment if you want to contribute the next year, even if you already participate.
Tax-advantaged Accounts
Health Savings Account (HSA)
Administered by: Inspira
Available only to Team Members who enroll in the Innovation Health HSA HDP (High Deductible Plan) or Outside NOVA HSA HDP.
Health Care Flexible Spending Account (FSA)
Administered by: Inspira
Available to Team Members who enroll in the Innovation Health PPO or Outside NOVA PPO, or do not elect medical coverage through Inova.
Limited Purpose Flexible Spending Account (FSA)
Administered by: Inspira
Available to Team Members who enroll in the Innovation Health HSA HDP (High Deductible Plan) or Outside NOVA HSA HDP with an HSA to use for dental and vision expenses.
Dependent Care Flexible Spending Account (FSA)
Administered by: Inspira
Available to all Team Members.
Key features at a glance
Here’s how to make the most of your dental benefits:
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.
*Contributions are not subject to federal income tax. However, HSA contributions 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.
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 get $733 in tax savings 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 illustration 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.
*Contributions are not subject to federal income tax. However, HSA contributions 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.
Health Savings Account
With the Innovation Health HSA HDP (High Deductible Plan) and Outside NOVA HSA HDP, you’re eligible to open and contribute money to a Health Savings Account (HSA) through Inspira. The HSA is a tax-free savings account that you own. You can use it to pay for eligible health expenses anytime, even in retirement.
Get unbeatable advantages with an HSA
The cost of your prescription drugs depends on the tier of the medication — generic, preferred, or non-preferred. All prescription carriers have a formulary, or list of preferred drugs based on effectiveness and cost.
*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.
2025 Contribution Limits
Keep in mind, the maximum amount you and Inova can contribute to your HSA is determined by annual limits that the IRS sets. In 2025, the total contribution limits are:
- $4,300 if you have Team Member-only medical plan coverage, or
- $8,550 if you cover dependents.
Add $1,000 to these limits if you’re age 55 or older.
Who’s eligible for an HSA?
In order to establish and contribute to an HSA, you:
- Must be enrolled in the Innovation Health HSA HDP (High Deductible Plan), Outside NOVA HSA HDP, or another qualified high-deductible medical plan.
- Cannot simultaneously participate in the Health Care FSA (but participation in a Limited Purpose FSA is allowed).
- Cannot be enrolled in any other medical coverage, including a spouse’s plan or Medicare.
- Cannot be claimed as a dependent on someone else’s tax return.
You should review IRS rules for making HSA contributions if you will turn age 65 during the year. For more information, see IRS Publication 969.
Increase your tax savings with a Limited Purpose FSA
Use your HSA together with a Limited Purpose FSA for additional tax savings. With the Limited Purpose FSA, only dental and vision expenses are allowed.
Getting Started
To contribute to an HSA, you must be enrolled in the Innovation Health HSA HDP (High Deductible Plan) or Outside NOVA HSA HDP. You will elect your HSA contribution amount during enrollment. You can then manage your account through the Inspira website.
As you start using your account, keep in mind that you can only spend money that has actually been deposited into your account — your entire annual contribution amount is not available to you from the beginning of the plan year. Your HSA balance will grow as deposits are made from each paycheck.
Flexible Spending Accounts
Using an FSA is like getting a discount on everyday health and/or dependent care expenses because you’re paying with tax-free money. There are separate FSAs for healthcare and dependent care. Our FSAs are administered by Inspira.
Carry over your FSA money!
You can carry over $660 of your Health Care FSA and Limited Purpose FSA from 2025 to 2026. Request reimbursement or manage your account on the Inspira website.
Health Care FSA
A Health Care FSA is available to Team Members who enroll in the Innovation Health PPO, Outside NOVA PPO, or do not elect medical coverage. You can contribute up to $3,300 for the year through pre-tax payroll deductions to help cover eligible medical, dental, and vision expenses.
How the Health Care FSA works
Log into the Inspira website and then click this link to use the Savings Calculator.
Limited Purpose FSA
A Limited Purpose FSA is available only to Team Members with an HSA to offer additional tax-saving opportunities. You can contribute up to $3,300 for the year through pre-tax payroll deductions. This account can be used for eligible dental and vision expenses only.
How the Limited Purpose FSA works
Log into the Inspira website and then click this link to use the Savings Calculator.
Dependent Care FSA
A Dependent Care FSA is available to all 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 child care for children up to age 13 and care for dependent elders.
How the Dependent Care FSA works
Compare the Accounts
| HSA | Health Care FSA | Limited Purpose FSA | Dependent Care FSA | |
|---|---|---|---|---|
| Available with … | ||||
| Innovation Health HSA HDP (High Deductible Plan) Outside NOVA HSA HDP | Innovation Health PPO Outside NOVA PPO (Also available if you waive medical coverage) | Innovation Health HSA HDP (High Deductible Plan) Outside NOVA HSA HDP | Your employment at Inova | |
| Contribute per year (set by the IRS) | $4,300 individual $8,550 family An additional $1,000 if you’re 55 or older | $3,300 | $3,300 | Up to $5,000*; $2,500 if married and filing separately from your spouse |
| Use account money for… | All eligible health care expenses | All eligible health care expenses | Eligible dental and vision expenses | Eligible dependent care expenses, including child care for children up to age 13 and care for dependent elders |
| Change your contribution amount anytime | Yes | No | No | No |
| Access your entire annual contribution amount as needed | No | Yes | Yes | No |
| Access only funds that have been deposited | Yes | No | No | Yes |
| “Use it or lose it” at year-end | No | Yes, you can carry over up to $660 | Yes, you can carry over up to $660 | Yes, you will have until March 15, 2026, to incur claims for eligible expenses for 2025 contributions. All funds not used for eligible expenses incurred by |
| Money is always yours to keep | Yes | No | No | No |
| Report to IRS | Yes; the IRS requires that you include Form 8889 with your federal income tax return each year that you have an HSA | No | No | No, but you can’t claim the dependent care tax credit for any expenses reimbursed from this account |
*Limit will be less for highly paid Team Members earning more than $160,000.