Flexible Spending Account (FSA)

FSAs allow you to pay for eligible medical and dependent care expenses using pretax dollars you contribute on an annual basis. Benefits are provided through Discovery Benefits.

Find An FSA That Works For You!

You may participate in this FSA benefit even if you are not enrolled in a Valleywise Health medical plan. There are two types of Flexible Spending Accounts – the Health Care FSA and the Dependent Care FSA.

Health Care FSA

Used to pay for services not covered by your medical, dental or vision plan such as copays, coinsurance, deductibles, prescription expenses, lab exams and tests, contact lenses and eyeglasses.

 

Dependent Care

Used to pay for day care expenses associated with caring for elder or child dependents that are necessary for you or your spouse to work or attend school full-time. You cannot use your Health Care FSA to pay for Dependent Care expenses.

 

Comparing The Two FSA Plans

Health Care FSA
Contribute up to $2,600 per year, pretax.
Receive a debit card to pay for eligible medical expenses (funds must be available in your account).
Eligible expenses include medical copays, coinsurance, deductibles, eyeglasses, over-the-counter medications prescribed by your doctor. View Eligible Expenses
Submit claims within 90 days of the plan year-end.
If you do not spend all the money in this FSA after the deadline, unused dollars will be forfeited per IRS regulations for pretax contributions.
Dependent Care FSA
Contribute up to $5,000 per year, pretax, or $1,500 if married and filing separate tax returns.
You must submit claims and be reimbursed if you enroll in this FSA; no debit cards are provided.
Can only be used to pay for eligible dependent care expenses including day care, after-school programs, and elder care programs. View Eligible Expenses
Submit claims within 90 days of the plan year-end.
If you do not spend all the money in this FSA after the deadline, unused dollars will be forfeited per IRS regulations for pretax contributions.
It’s Easy To Use Your Account!

STEP 1

First, you contribute to the account(s) with pretax dollars deducted from your paycheck. That means no taxes (federal, state or Social Security) will be withheld from any of those dollars.

 

STEP 2

Then, you pay for certain eligible expenses out of your pocket as usual. You may use your debit card or submit a claim (along with the appropriate documentation) to be reimbursed for those expenses from the dollars in your account.

STEP 3

There is a “use it or lose it” rule imposed by the IRS. In other words, if you do not spend all the money in your FSA by the deadline, any unused dollars in your account(s) after the deadline will be forfeited.

Save On Your Taxes With FSAs!

 Health Care FSADependent Care FSA
Without AccountWith AccountWithout AccountWith Account
Your Taxable Annual Income$50,000$50,000$50,000$50,000
Account Deposit (Before Taxes)N/A$2,500N/A$5,000
Taxable Wages$50,000$47,500$50,000$45,000
Federal & Social Security Taxes$14,325$13,609$14,325$12,894
Expense (After Taxes)$2,500N/A$5,000N/A
Take Home (Net)$33,175$33,891$30,675$32,106
Annual Tax Savings$0$716$0$1,431

Are You Eligible?

If you are enrolled in the High Deductible Health Plan (HDHP) with Health Savings Account (HSA), you are not eligible to participate in the Medical FSA reimbursment account.