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Tell Me About FSAs

 green piggy bank, FSAs save you money About Flexible Spending Accounts (FSAs) 

Types of FSAs

The State of Michigan offers two types of FSAs:

  • Health Care FSAs - allow you to put aside pre-tax dollars for health care expenses not covered by any medical, dental, or vision care plan. These expenses are allowed for you and qualifying individuals. Visit www.wageworks.com for a list of eligible Health Care expenses.
  • Dependent Care FSAs - allow you to put aside pre-tax dollars to cover child/elder dependent care expenses (such as day care) for your eligible dependents so you can work. Visit www.wageworks.com for a list of eligible Dependent Care expenses. 
How FSAs work
You can enroll in an FSA during open enrollment, as a new hire, or due to a qualifying life event.  FSAs permit you to deduct up to $2,500 for eligible health care expenses and $5,000 for eligible dependent care expenses from your wages before taxes.  This gives you more out-of-pocket money to spend elsewhere.

 

Use the WageWorks© Health Care Card

 

Use your WageWorks© Health Care Card instead of cash at health care providers and pharmacies for eligible goods, prescriptions, and services, such as co-pays. You must provide a valid prescription at the pharmacy counter in order to use your Card for over-the-counter (OTC) drug purchases. You will also be able to use your Card for non-drug OTC items and devices, such as bandages, and contact lens solution, as long as you shop at merchants that have an industry standard (IIAS) inventory system that can verify the eligibility of items at checkout. An updated list of IIAS merchants is maintained at www.sigis.com.

Always remember to save receipts when using the Card. The IRS requires you keep them for your tax records, and you will also need them if documentation is requested for verification.

 

Using your FSA is easy

 

When you elect a health care FSA, your account is funded with the full amount you've chosen at the beginning of the year. As soon as that happens, it's ready to use for eligible expenses. Throughout the year, you "pay your account back" with pre-tax contributions from your paycheck. Use these convenient payment options:

  • WageWorks© Health Care Card. Use it instead of cash at health care providers and wherever accepted for health-related services and health expenses.
     
  • Pay My Provider. Send payment directly to your health care provider.
     
  • On the Go. Use our mobile application to file a claim from your smartphone. 
You can also choose a dependent care FSA to help with the cost of care for eligible children or aging parents while you are at work. A dependent care FSA works a lot like a health care FSA, except funds are available as contributions are deducted from your paycheck.