What is a Health Care Flexible Spending Account?
Health Care Flexible Spending Accounts (HCFSAs), governed under Sections 125, 105, 213 and other sections of the IRC (Internal Revenue Code), allow participants to set aside pre-tax payroll dollars for the payment of a wide variety of healthcare expenses. Expenses eligible for reimbursement are listed in Section 213 of the IRC elsewhere on this site (click Login to login into your account, then click your FSA account, then download the PDF’s under “Plan Information and Forms” for eligible daycare, health, or over-the-counter). HCFSAs have become increasingly accepted and popular over the last fifteen years and are now a common component in the benefit plans of most public and private organizations. Employees like HCFSAs because they help to increase the employee’s spendable income. Furthermore, the cost of maintaining HCFSAs is usually more than compensated for by the FICA savings to the employer.
