Flexible Spending Accounts

Managed by EBS Solutions

What is it?

A Health Care Flexible Spending Account (FSA) allows you to save both FICA (7.65%) and Federal Income Tax (10%-35%) on qualifying health care expenses for you, your spouse, and your dependents.

What are qualified health care expenses?

Expenses incurred for the diagnosis, treatment or prevention of disease, or for treatments affecting any part or function of the body. Common eligible expenses include co-pays for prescriptions & office visits, the deductibles in your medical, dental, & vision plans, crowns, orthodontia, Lasik eye surgery, glasses, contact lens solution, physical therapy, Acupuncture, mental health services, and over-the-counter drugs.

What kinds of expenses are not eligible?

• Expenses already reimbursed by your insurance.
• Expenses meant for one's general health .
• Expenses solely for cosmetic reasons.

How does the plan work?

Each pay period, your employer will deduct the amount you elected to have withheld from your paycheck. No FICA or federal income taxes will be deducted from your elected amount. These funds will be held in a disbursement account in your name until you make a claim for qualifying expenses. Click here for a flexible spending reimbursement form.

How do I participate?

Estimate the out of pocket expenses you, your spouse, and your dependents will incur in the coming plan year. Add up your deductibles, prescriptions and office visit co-pays, and other eligible expenses. Plan ahead and go to your providers. Find out if you'll need any dental or vision care in the next 12 months. Crowns? Braces? Contacts? Glasses? Do you want more expensive frames for your glasses than your vision plan allows? Total it all together to come up with your annual election amount.

When do I elect to participate?

You must enroll each year during the open enrollment period and prior to the plan anniversary date.

How much money will I save?

Your savings will be your share of FICA (7.65%) and your Federal Income Tax rate (10% to 35%).

Example:

Jill earns $36,000 annually and has out of pocket costs for deductibles and co-pays on her Medical & Dental plans. Jill wears contacts and also needs a dental crown this year.

Without Health Care FSA

With Health Care FSA

Jill has increased her take home pay by $823 per year (approximately $69 per month) by participating in the Health Care Flexible Spending Account. Jill's savings will be even more if her premiums are also deducted on a pre-tax basis through the Premium Conversion Account.