What is a health care spending account?
A health care spending account permits employees to set aside money on a pre-tax basis to pay for qualified uninsured health-related expenses. By setting aside the money on a pre-tax basis you are reducing your take-home pay and the taxes you pay. The funds cannot be used to pay for insurance premiums. The maximum contribution is $3,000 per calendar year. The funds can be used to pay for medical and dental plan deductibles and copayments, certain uninsured medical expenses, and other eligible expenses such as contact lenses, eyeglasses for you or your family (a family member must be an IRS dependent). Health care spending accounts can also reimburse expenses for nonprescription or over-the-counter medications such as Claritin, Tylenol, Motrin, band-aids, antacids, and cough medications. Expenses that are not covered include items that are beneficial to your general health such as vitamins and herbal supplements.
Related Questions
- Im on the HDHP and participate in the Health Savings Account (HSA). Can I also participate in the Health Care Flexible Spending Account (FSA) through WageWorks?
- Are over-the-counter items eligible for reimbursement under the Health Care Spending Account plan?
- What is the Health Care Flexible Spending Account?
