How the Curative Zero Card Stands Out from HSA and FSA for Affordable Health Insurance Optimization
13 Minutes
Team Curative
Dec 12, 2024
When it comes to paying for healthcare, options like Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs) are often touted as solutions to manage out-of-pocket expenses. However, they still require employees to set aside their hard-earned money to pay for care, which can feel far from "affordable." That’s where the Curative Zero Card changes the game.
Unlike HSAs and FSAs, the Curative Zero Card offers a no-cost solution for covered healthcare services at in-network providers without requiring pre-tax contributions or out-of-pocket spending. Members 18 and older simply need to complete the Baseline Visit with Curative within the first 120 days of the plan start date. Whether you're visiting a provider for an office visit, urgent care, or behavioral health, the Zero Card allows you to pay the cash price—covered fully by Curative—at participating providers.
So, how does the Curative Zero Card stack up against HSAs and FSAs to help with Affordable health insurance? Let’s break down the key differences:
The Curative Zero Card:
Purpose
To provide $0 out-of-pocket healthcare services for employees enrolled in Curative health insurance
Who can use it
Employees 18+ with Curative employer-based health plans*
Funding source
Fully funded by Curative (no out-of-pocket costs)
Out-of-Pocket Costs
$0 for covered services at Zero Card-approved providers
Rollover
Not applicable (no funds required)
Eligible Services
Office visits, urgent care, behavioral health, and select outpatient services
Provider Access
Use at Zero Card providers or nominate new ones
Impact on Paycheck
No impact (no pre-tax contributions required)
HSA (Health Savings Account)
Purpose
To help individuals save pre-tax money for healthcare expenses
Who can use it
Individuals with a High-Deductible Health Plan (HDHP)
Funding source
Employee and/or employer contributions
Out-of-Pocket Costs
Employee pays expenses just with with pre-tax money
Rollover
Unused funds roll over annually
Eligible Services
Qualified medical expenses (deductibles, co-pays, prescriptions)
Provider Access
Dependent on plan network
Impact on Paycheck
Reduces take-home pay via pre-tax contributions
FSA (Flexible Savings Account)
Purpose
To allow employees to use pre-tax dollars for healthcare costs
Who can use it
Employees with access to employer-sponsored plans
Funding source
Employee contributions only
Out-of-Pocket Costs
Employee pays same expenses just with pre-tax money
Rollover
Use-it-or-lose-it (limited rollover options)
Eligible Services
Qualified medical expenses (deductibles, co-pays, prescriptions)
Provider Access
Dependent on plan network
Impact on Paycheck
Reduces take-home pay via pre-tax contributions
What is an HSA?
HSAs were created as part of the Medicare Prescription Drug, Improvement, and Modernization Act of 2003, which President George W. Bush signed into law. A health savings account is a tax-advantaged account designed to help individuals with HDHPs pay for qualified medical expenses. It works similarly to a personal savings account, but the funds in an HSA are used exclusively for health insurance costs.
A High-Deductible Health Plan (HDHP) qualifies for an HSA if it meets IRS requirements: a minimum deductible of $1,600 for individuals or $3,200 for families and a maximum out-of-pocket limit of $8,050 (individual) or $16,100 (family) in 2024. Preventive care is typically covered before meeting the deductible.
Advantages of an HSA
Tax Benefits: Contributions are tax-deductible, grow tax-free, and can be withdrawn tax-free for qualified medical expenses.
Rollover Flexibility: Unlike FSAs, HSA funds roll over year to year, so there’s no loss of unused money.
Investment Options: Participants can invest HSA funds, which can help them grow in savings over time.
Disadvantages of an HSA
Requires an HDHP: Participants can only open an HSA if they have a high-deductible health plan, which often means higher out-of-pocket expenses before insurance kicks in.
Participants Use Their Own Money: Even though there are tax benefits, the individual’s money is still spent on medical expenses.
Penalties for Early Withdrawal: If you withdraw money for non-medical purposes before age 65, you will be subject to penalties and taxes.
Though anyone who meets the standard requirements for an HSA can get one, they benefit certain categories of people more than others. Healthy individuals with low medical expenses can benefit from HSAs as they can save and roll over unused funds yearly. There are excellent tax advantages, making them ideal for individuals looking to reduce their tax burden while saving for healthcare.
People planning for future medical expenses can use them to grow savings tax-free for healthcare in later years. Higher-income earners benefit from contributing the maximum amount to an HSA because it reduces their taxable income. While HSAs serve some well, they feel like navigating a one-way street — there's little room to explore alternative routes.
What is an FSA?
FSAs were created as a part of U.S. tax reform in the Revenue Act of 1978, which allowed employers to offer these accounts as a benefit to help employees save on taxes while paying for medical expenses. Lawmakers designed them to give employees control over allocating pre-tax dollars toward healthcare costs. The idea was that employees could set aside a portion of their income before taxes to pay for out-of-pocket medical expenses like doctor visits, prescriptions, and other healthcare-related costs.
FSAs became widely adopted by employers in the 1980s and 1990s as part of their affordable health insurance packages. A key feature of FSAs is the "use-it-or-lose-it" rule, which means employees must spend the funds within the plan year or forfeit the remaining balance. In 2005, the IRS allowed a grace period for spending leftover FSA funds, and later, in 2013, a rule was introduced allowing a small rollover of up to $500 to the next year to help reduce forfeitures. While similar to an HSA, it helps cover healthcare costs, but there are key differences.
Advantages of an FSA
Lower Your Taxable Income: Contributions reduce taxable income, offering tax savings on the money used for medical expenses.
Wide Range of Eligible Expenses: FSAs cover medical, dental, and vision expenses and certain over-the-counter medications.
Disadvantages of an FSA
Use It or Lose It: FSA funds must be used within a specific period, usually by the end of the year, or participants risk losing them.
Limited Flexibility: Unlike HSAs, FSAs don’t roll over from year to year, making it difficult to manage long-term healthcare costs.
Paycheck Deductions: The money comes directly from the participant’s paycheck, meaning they’re still individually responsible for funding their medical expenses.
FSAs are particularly well-suited for families with young children who frequently visit the doctor due to common illnesses and adults dealing with regular aches and pains. They’re also ideal for people managing chronic conditions like diabetes or glaucoma, requiring ongoing medications and checkups.
Individuals planning surgeries or medical procedures like laser eye surgery or knee replacements can benefit from setting aside pre-tax dollars. Additionally, those anticipating elderly care costs for aging parents or themselves can use dependent care FSAs to manage long-term care expenses. However, with limited options, choosing the "best of the bunch" doesn’t always mean choosing the best.
Introducing the Curative Zero Card: A better way to manage affordable health insurance
The Curative Zero Card is an extension of a Curative member’s health insurance plan and ensures immediate payment for services to the provider. It is an extension of the traditional Curative Member ID Card, which uses traditional claims processing. The Curative Zero Card increases peace of mind for coverage by serving as a backup payment method to the Curative Member ID Card and as a means to expeditiously expand the provider network compared to traditional routes. There are two main situations to use the Curative Zero Card:
Zero Card approved providers: Cardholders can pay for a range of approved services for themselves or dependents with providers on the Provider Search marked “Zero Card Approved.” If a provider is not on the search, Curative members can simply fill out a quick form. If approved, members can see that provider using the Zero Card.
Back to Curative Member ID Card: If a provider claims not to accept Curative but on the provider search, members can rest easy by paying with their Zero Card and not shouldering any out-of-pocket costs.
Here’s a deeper look at how the Curative Zero Card stands out:
No Out-of-Pocket Costs: With the Curative Zero Card, members can visit any provider found on the provider search without paying anything out of pocket*. Unlike an HSA or FSA, where participants use their pre-tax funds, the Curative Zero Card covers eligible medical services directly.
Wide Network of Providers: The Zero Card offers access to a broad network of healthcare providers through the provider search. However, while an HSA uses the individual participant’s money, the Zero Card operates without depleting personal savings — talk about affordable health insurance!
No Rollover Hassles: One of the burdens with HSAs is managing account rollovers, especially when transferring funds between providers. Rollover mistakes can lead to taxes, penalties, or missed deadlines. The Curative Zero Card eliminates the need to worry about this entirely, as there’s no personal account or rollover to manage.
Simplified Coverage: With the Curative Zero Card, coverage is simple — if the provider appears on the provider search, services are covered without hidden fees or the need to manage separate accounts. It even includes medically necessary devices, as outlined in Curative’s benefits booklet.
Curative's Money, Not Yours: One of the most compelling advantages of the Curative Zero Card is that members do not spend their own money. Curative covers the out-of-pocket cost at the time of payment, making it a far more straightforward option than FSAs or HSAs, where participants must ensure they have enough in their accounts to cover expenses.
The innovative benefits of Curative don’t stop there.
Curative doesn’t stop at offering the Zero Card for zero out-of-pocket costs; we’re committed to delivering a full spectrum of innovative, affordable health insurance solutions. Our plan focuses on affordability, engagement, and simplicity so our members feel confident getting the care they need when they need it. This proactive approach helps members stay healthier in the long run while reducing overall healthcare costs.
Baseline Visit and Care Navigator: All members are encouraged to attend a Baseline Visit with a Curative Care Navigator. During the visit, members work with their Care Navigator to tailor an individualized, preventive care plan and identify areas of opportunity and potential problems from the plan's start. This way, members better understand their plans the Member Portal and can access the right resources at the right time through our easy-to-navigate Provider Search.
No-hassle meds: Curative members can access the Curative Drug Formulary, which offers $0 drug options for most conditions. Members can fill these prescriptions at any in-network pharmacy. Members can also select services through the Curative Pharmacy, which offers rapid delivery. Mental Health Resources: Members can access $0 therapy from therapists, psychiatrists, and psychologists in the Provider Search. Curative also offers $0 preferred medications that appear on the drug formulary. Members can also tap into remote therapy through our partnerships with Teladoc and Televero.* For mental health providers who do not take insurance, the Curative Zero Card is a convenient payment option that expands the network.
Telehealth: Curative offers 24/7/365 telehealth through Teladoc and NormanMD to ensure members get care when they need it. Members can access $0 telemedicine health care in under 10 minutes via messaging, audio, or video chat.
Hearing Aids: Curative plans offer $0 hearing aids*, which can help members create a plan for hearing loss treatment. This includes therapy for hearing loss or impairment, routine hearing loss care, care for medical conditions or accidents related to hearing, prescription and over-the-counter hearing aids, and free maintenance, including cleanings, follow-up visits, and adjustments. Members can also utilize our partnership with Costco and Audicus to get hearing aids easily using their Curative Zero Card.
ClassPass: Curative members enrolled in the PPO+ plan receive a 25-credit monthly membership with ClassPass. Through the app, members can access thousands of studios, gyms, salons, and spas at no cost.
Cancer Screenings with Galleri®: Curative offers eligible members no-cost access to the Galleri multi-cancer early detection test from GRAIL. With a single blood test, Galleri can help detect more than 50 types of cancer..
Prediabetes Resources: Curative provides resources and tools, like medication and nutritional support, to help members lower their chances of type 2 diabetes.
Type 2 Diabetes Management: Curative’s Type 2 Diabetes Program offers one-on-one member support to reach their health goals, including nutritional support and periodic check-ins. Members with a valid prescription are also eligible to redeem a free OneTouch blood glucose meter.
Weight Management: Members can access weight management programs, including Noom and H-E-B Wellness Nutrition Services.
Substance Use Management: Curative partners with Pelago for members who want to cut back, manage, or quit alcohol, tobacco, or opioid use. Signing up is easy and judgment-free.
Monitoring High Blood Pressure: Curative helps members manage and improve their blood pressure levels through diet guides and medication management. Members can also receive $0 CPAP machines, sleep studies, and a free high-blood pressure monitor.
Maternity Care: Curative offers personalized prenatal care at every stage of pregnancy at facilities appearing on the Provider Search, including $0 labor and delivery and postpartum care.
Learn more about Curative’s affordable health insurance by visiting our member page.
About Curative
Curative is a health plan that employees and employers love for its affordability, engagement, and simplicity. With $0 copays and $0 deductibles, Curative stands apart as a first-of-its-kind plan that eliminates financial barriers to care with guided support. Imagine — a health plan that actually delivers better health.
*Every Curative member can continue to qualify for the $0 deductible or copay for covered services from providers listed on Provider Search and preferred prescriptions by completing a Baseline Visit in the first 120 days of the plan’s effective date.
*Members in Texas and Florida can access virtual therapy through Televero, and all members outside of Texas can access virtual therapy through Teledoc.
*Healthcare is provided through the Teladoc network of medical providers or NormanMD for members in Texas. Treatment options and eligibility determinations made by independent licensed medical providers.
To see all disclaimers, please view them here.
Resources
HR Brew. (2023, December 11). HR 101: The history of the healthcare FSA. HR Brew. https://www.hr-brew.com/stories/2023/12/11/hr-101-the-history-of-the-healthcare-fsa
Vox. (2023, October 16). The great FSA debate: Why people love them or hate them. Vox. https://www.vox.com/policy/23892823/healthcare-flexible-spending-account-fsa-hsa-wageworks
FSA Store. (n.d.). How we got here: A timeline of tax-free healthcare. FSA Store. https://fsastore.com/articles/learn-got-timeline-tax-free-healthcare.html
Monster. (n.d.). The benefits of flexible spending accounts. Monster. https://www.monster.com/career-advice/article/flexible-spending-account-benefits
SmartAsset. (2024, September 19) Who do HSAs make sense for? SmartAsset. https://smartasset.com/insurance/who-do-hsas-make-sense-for
Healthinsurance.org. (2024, May 20) How does a health savings account (HSA) work?
HealthInsurance.org. https://www.healthinsurance.org/faqs/how-does-a-health-savings-account-hsa-work/#taxes
Healthinsurance.org. (n.d.). Flexible spending account (FSA). HealthInsurance.org. https://www.healthinsurance.org/glossary/flexible-spending-account/
