Department of Management Services

Health Care FSA

What is a Healthcare FSA (FSA)?

It is a type of savings and spending/flexible spending account that allows you to reimburse yourself with pretax dollars for eligible out-of-pocket healthcare costs. If you have a health savings account, you cannot enroll in an FSA.

The healthcare FSA is available to full and part time salaried employees. If you have a high deductible plan and a health savings account, see the limited purpose FSA.

You can use the healthcare FSA to cover eligible healthcare expenses not covered by your health plan. When you do, you don’t pay federal income taxes on the money in your account.

You can set aside $60 to $2,650 each plan year to cover eligible expenses during that year. The minimum annual deduction is $60. Your contributions come out of your pre-tax pay in equal installments each pay period. Use the tax savings calculator to help you evaluate the tax savings and decide whether to participate.

Be sure to review the Benny®prepaid benefits card page and frequently asked questions (Adobe PDF Document 194.72 KB).

FSAs have a "use it or lose it" policy, which means you forfeit any amounts unused and not reimbursed for services received during the plan year. You may use what you set aside for the plan year for services up to March 15 of the following year. You must file your claims by April 15 following the plan year.

Eligible Expenses

Some Eligible Expenses Some Expenses Not Eligible

Money can be set aside for:

  • Deductibles
  • Copayments
  • Dental and vision care expenses
  • Orthodontia not covered by a dental plan
  • Prescription drugs
  • Over-the-counter medications (doctor’s prescription required to be eligible for reimbursement)
  • Chiropractic visits
  • Saline solution and contact lens cleaners
  • Procedures or expenses that are medically necessary
  • Doctor prescribed weight loss programs

The IRS lists these non-eligible expenses:

  • Cosmetic procedures
  • Your contributions for outside health or life insurance
  • Employer health premiums of any kind
  • Procedures or expenses not medically necessary
  • Weight loss programs not prescribed by a doctor