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Tell Me About Flexible Spending Accounts (FSAs)
Types of FSAs
The state offers the following types of FSAs:
Health Care FSAs: These allow you to put aside payroll deducted pre-tax dollars for eligible health care expenses not covered by any medical, dental, or vision plan for you and qualifying individuals.
- General Purpose Health Care FSA (GPHC FSA) is the standard Health Care FSA the state traditionally has offered and will continue to offer. This FSA can be used for eligible health, prescription, dental, and vision expenses.
- Limited Purpose Health Care FSA (LPHC FSA) is a Health Care FSA that can be used for eligible dental and vision expenses and is compatible with the new State High Deductible Health Plan (HDHP) with Health Savings Account (HSA) or any other HSA enrollment. This FSA is intended for employees enrolled in the State HDHP with HSA.
Dependent Care FSA: This allows you to put aside payroll deducted pre-tax dollars for eligible child and elder-care expenses for your eligible dependents, so you can attend work, find work, or attend school. Dependent Care FSAs are not Health Care FSAs for your dependents.
How FSAs Work
You can enroll in an FSA during the annual Benefits Open Enrollment, as a new hire, or due to a qualifying life event. For the 2024 plan year FSAs permit you to deduct up to $3,200 for eligible health care expenses and $5,000 for eligible dependent care expenses from your wages before taxes.
HealthEquity|WageWorks Health Card
Use your HealthEquity|WageWorks Health Care Card instead of cash at health care providers and pharmacies for eligible goods, prescriptions, and services, such as copays. 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 inventory system (IIAS) that can verify the eligibility of items at checkout.
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. These convenient payment options are available:
- HealthEquity|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 much like a Health Care FSA, except funds are available as contributions are deducted from your paycheck.