Flexible Spending Accounts
Flexible Spending Accounts (FSA) allow employees to pay for unreimbursed medical expenses and day care costs with pre-taxed money. An FSA allows employees to set aside a pre-determined amount of money through payroll withholdings to pay for certain out-of-pocket expenses. The funds are withheld from the employee before taxes (pre-tax). After the participant has incurred a service, he/she is reimbursed from their account with a tax-free reimbursement. There are two types of FSAs, a Medical Care Spending Account and a Dependent Care Spending Account. An employee can elect to participate in one or both of the FSAs.
The Medical Care Spending Account helps pay for those expenses not covered or partially covered by health and/or dental insurance such as deductibles, copayments, coinsurance and prescription copays. In addition, there are many eligible expenses that normally are not covered by insurance like laser eye surgery, orthodontia and over-the-counter medications.
The Dependent Care Account provides relief for day care costs for children through age 12 and adult day care. Eligible expenses include day care provided by a day care facility or in-home dependent care, before/after school care programs, pre-school and summer day camp.
Please refer to our enrollment guide for a more detailed description of each account.