What you need to know
A Health Care Flexible Spending Account (FSA) helps you manage eligible health care expenses. Your pretax contributions can be used to pay for doctors’ visits, prescription drugs, and over-the-counter medications.
FSA plans require reenrollment annually, because current year elections do not automatically roll over.
Health Care FSA fast facts
You contribute through paycheck contributions. You can use the money to pay for eligible health care expenses during the calendar year. For employees hired after the first of the year, your benefits effective date is your hire date.
Contribute up to $3,050 in 2023. And you don’t pay federal or state income taxes on FSA contributions. Your entire Health Care FSA annual election is available at the beginning of the plan year, and the balance is reduced by any reimbursements made throughout the year.
Carry over up to $610 of your unused balance from 2023 to the 2024 plan year.
You’ll receive a Smart-Choice debit card if you contribute $100 or more.* Use the card to pay for eligible health care expenses anywhere the debit card is accepted — and skip the reimbursement process! Your eligible expenses are automatically deducted from your account.
You have until December 31, 2023, to file claims for eligible expenses incurred in 2022. Normally, participants have until April 30th of the following year to file eligible claims incurred in the previous year, however the deadline for filing 2022 claims was extended due to the end of the National Emergency period.
The deadline to file eligible claims incurred from January 1, 2023, to December 31, 2023, will be April 30, 2024.
Contact YBR, our benefits administrator, If you have any questions about filing your claim.
FSAs are subject to IRS rules. Be sure to save all your receipts. You may be asked to provide copies to confirm your expenses. If you do not provide receipts when requested, your Smart Choice debit card could be deactivated.
Enrolled in the CDHP with HSA plan and want to enroll in the Health Care FSA?
It’s important to know that reimbursement under the Health Care FSA is limited to dental and vision expenses only. The HSA already gives you a tax benefit on medical expenses. However, if you reach the medical deductible in the CDHP plan, you will be able to submit eligible medical and pharmacy expenses. Submission of documentation to YBR confirming that you have reached your medical deductible is required. You cannot submit a medical or pharmacy claim for expenses incurred prior to reaching your plan’s medical deductible.
* Your card is good for three years from date of issue. If you are enrolled in the CDHP with HSA medical plan, eligible expenses are limited to dental and vision, and you will NOT receive a debit card if you enroll in the Health Care FSA.
How do I know how much to contribute?
Typically, this is a use-it-or-lose-it account. Any unused funds exceeding the annual allowable carryover amount at the end of the calendar year will be forfeited. You won’t receive a refund if you don’t use all the money in your FSA, which is why it’s important to understand what expenses are eligible and to conservatively estimate your FSA expenses for the coming year. In plan year 2023, participants can carry over up to $610 of unused funds to use in plan year 2024.
Use the FSA estimator on Your Benefits Resources (YBR) during Annual Enrollment to help you estimate your expenses. Another way to determine your Health Care FSA contribution is to talk to your medical, dental, and vision providers. Each can help you budget your expenses for the upcoming year. Also, if you have recurring medical, dental, or vision expenses, you likely already know how much you’ll need to contribute to cover those expenses.
Your contribution can’t be changed (increased or decreased) during the year unless you experience a qualifying life event (e.g., the birth of a child) and notify Your Benefits Resources (YBR) of the change within 30 days of the event.
The YBR team can answer your questions about qualifying life events and whether you can change your contribution election as a result.
Eligible health care expenses
Deductibles, coinsurance amounts, copays, and other expenses that are described in IRS Publication 502: Medical and Dental Expenses are considered eligible or a qualified expense. Premiums for health and other insurance aren't eligible expenses.
You may also now use your FSA or Health Savings Account (HSA) funds to buy over-the-counter (OTC) medications without a prescription, like Tylenol and other pain relievers, heartburn medications, allergy relief, and more.
You may submit eligible expenses incurred by you, your spouse, your children, and any other person who can be claimed as a qualified dependent on your federal income tax return. Domestic partner expenses are not covered.
Personal protection equipment (PPE), such as face masks, hand sanitizer, and sanitizing wipes, are now eligible for reimbursement through your Health Care FSA.
Submitting a claim
You’ll need to submit your receipts for reimbursement online. You can also quickly request reimbursement on your smartphone through the mobile app. Eligible claims are typically processed within three to five days. You can activate direct deposit online, which will expedite your reimbursement directly to your bank account.