Flexible Spending Accounts (FSA)

The FSA benefit plan allows employees to pay for certain out-of-pocket healthcare and dependent care expenses with pretax dollars.

What is a Flexible Spending Account (FSA)? Direct Link

  • An account that allows you to save money to use for certain health care and dependent care costs. There are three types of FSAs:
    • General Healthcare
    • Limited Purpose (Combination plan for HSA enrollees only)
    • Dependent Daycare
  • You can enroll in the health care account (limited purpose health care account for those with an HSA), the dependent care account, or both.
  • The money in the account is available July 1, 2020 through June 30, 2021.

FSA 101 Direct Link

How does an FSA work? Direct Link

  • You put money into the account through your paycheck, before any Federal, State, and Social Security taxes are taken out.
    • For the Healthcare/Limited Purpose FSAs, your entire annual election is available for reimbursement at the beginning of the plan year.
    • For Dependent Daycare FSA, only what has been deposited into your dependent care FSA account is available for reimbursement.
  • These deductions are taken throughout the year in equal amounts.
    • For example, if you decide to put $500 into an FSA, you’ll have $19.23 taken out of 26 paychecks and put into your account.
  • You must use all of the money you put in the account during the year – the money does not roll over to the next year. However, for the healthcare FSA (or limited purpose FSA), you will have a 2 1/2 month grace period (until September 15th) to spend down your account. There is no grace period for the Dependent care account.
  • You can submit claims for reimbursement through October 15th.

Review the FSA Employee Guide to learn more.

Save with an FSA Direct Link

Whether you are single, a working couple or have a family of four, an FSA provides more take-home pay and reduces your taxable income. The scenarios below highlight potential tax savings available through an FSA.

Health Care FSA Direct Link

How much can I contribute?

  • You can contribute $100 – $2,750 per year into the Health Care FSA.

Who can I use the money for?

  • You, your legal spouse and/or your dependent children.

What can I use the money for?

  • Deductibles and coinsurance
  • Medically necessary maintenance and support devices
  • Treatment of alcoholism or drug dependency
  • Dental, vision and hearing: dental checkups, orthodontics, glasses, LASIK and hearing aids (including batteries)

Eligible services, products and treatments

Limited Purpose Health Care Account Direct Link

What’s the difference?

This is a "Combination" plan that is only for those who have selected the Cigna 2000 Choice Fund with HSA medical plan option. A combination FSA is an FSA which can be used with your HSA to pay for eligible dental and vision expenses. Once the IRS statutory deductible has been met on the medical plan, the Combination FSA may be used for eligible health expenses. You can contribute $100 – $2,750 per year into the Limited Purpose/Combination plan.

Dependent Care FSA Direct Link

How much can I contribute?

  • You can put up to $5,000 per year into the Dependent Care FSA.
  • If you are married and filing your tax return separately, you can put up to $2,500 per year into the Dependent Care FSA.

Who can I use the money for?

  • Children under the age of 13 who are listed as dependents on your income tax return.
  • Dependents of any age who are incapable of caring for themselves and who regularly spend at least 8 hours a day in your home.
  • Daycare expenses are defined as those that are necessary in order for you (and your spouse, if you’re married) to continue working.

What can I use the money for?

Eligible Dependent Care expenses, covered while you are at work, include:

  • Babysitters
  • Day Care Centers
  • Nursery School/Preschool
  • After School Care Programs

Eligible services

Discovery Mobile Site Direct Link

When you visit Discovery Benefits on your mobile device you can:

  • Access account balances and election amounts
  • Receive account alerts, including card transaction verification requests
  • View important dates
  • Scan the barcode of products to see if it is an eligible expense.
  • Upload documentation in seconds from your phone's camera.

Visit Discovery Benefits to learn more.

Account Details Direct Link

How do I use the money?

When you have an eligible expense, you can:

  • Submit a claim for reimbursement and;
  • choose to receive a check by mail or,
  • have a direct deposit to your checking or savings account.
  • Have funds automatically deducted from your account by using your Discovery FSA debit card.
  • The debit card can be used with your Health Care FSA and Dependent Care FSA dollars (if provider accepts it).
  • You can submit receipts for reimbursement for your Dependent Care expenses if your provider does not accept a debit card.
    • You can submit a manual reimbursement request via: Claim submission and receipt upload at: www.discoverybenefits.com or the Discovery Benefits mobile app
  • The FSA debit card deducts each payment directly from your FSA account.

Your Health Care and Dependent Care accounts function separately. You cannot use funds from one account to pay for eligible expenses from the other account (for example, using dependent care account funds for health care expenses).

Should I keep my receipts?

Yes. You may be occasionally asked to submit your receipt as proof of an eligible expense. Remember to keep original receipts for your records as you may be required to provide documentation directly to the IRS in the event of a personal tax audit.

How long can I access the money in the accounts?

You can submit claims for reimbursement through October 15, 2021. Any money that you set aside for your Health Care or Dependent Care accounts that is not used for claims incurred through September 15, 2021 will be lost. Do not contribute more than the amount you are sure you will use during the plan year for eligible expenses.