What is a Flexible Spending Account?
The Flexible Spending Account (FSA) assists in paying for eligible out-of-pocket health care expenses. Participants make pre-tax contributions by payroll deduction and the contributions are allocated to an account maintained on the participant’s behalf by the employer. After paying for an eligible out-of-pocket expense, tax-free reimbursement will be processed following submission of a claim for reimbursement. A Debit or Credit card may be used to eliminate the out-of-pocket expense at the point of sale, but may still require submission of a claim for reimbursement. The result of paying for health care expenses through the Flexible Spending Account (FSA) may lower the participants income taxes and increase their take-home pay.
A Flexible Spending Account (FSA) is a tax-free account that allows you to pay for essential health care expenses that are not covered, or are partially covered, by your medical, dental and vision insurance plans; or pay for child/dependent care expenses. The two programs we offer are the Health Care Reimbursement Account (HCRA) and the Dependent Care Reimbursement Account (DCRA). By contributing a portion of your payroll dollars into your FSA on a pre-tax basis, you can save from 25% to 40% on the cost of eligible expenses you are already experiencing.
