Final answer:
HSAs and FSAs are healthcare savings accounts that allow individuals to save pre-tax money for medical expenses. HMOs and PPOs are types of managed care health insurance plans. HSAs and FSAs offer tax advantages, while HMOs and PPOs offer different levels of flexibility and cost-sharing.
Step-by-step explanation:
HSAs and FSAs are types of healthcare savings accounts that allow individuals to set aside pre-tax money for medical expenses. HSAs, or Health Savings Accounts, are available to individuals with high-deductible health insurance plans. Contributions to HSAs are tax-deductible, and any unused funds can roll over to future years.
FSAs, or Flexible Spending Accounts, are available through an employer-sponsored plan and allow employees to set aside pre-tax money for medical expenses. Unlike HSAs, FSAs are subject to a use-it-or-lose-it rule, meaning that any unused funds at the end of the plan year are forfeited.
HMOs and PPOs are types of managed care health insurance plans. HMOs, or Health Maintenance Organizations, require members to choose a primary care physician and obtain referrals for specialist care. PPOs, or Preferred Provider Organizations, offer more flexibility in choosing healthcare providers but generally require higher out-of-pocket costs.