What is the difference between a Flexible Spending HCA and DCA?
HCA stands for Health Care Account. This is the Flexible Spending Account you use for medical expenses. When you elect an amount for an HCA, all of the money in the account is available to you from the first day in your plan year, regardless of whether you have deposited it or not. For example, if you elect to have $1,000 taken out of your paycheck over the course of the plan year, that $1,000 is available to you for eligible expenses at any point during the plan year. If you meet your election (use the $1,000) prior to the end of the plan year, the deduction will continue to be taken from your paycheck to “repay” the Flexible Spending HCA. Your employer will set the limit of how much money you can elect to deposit in an HCA. DCA stands for Dependent Care Account and is a little different. In this case, Educators Mutual can only pay out the amount that you have deposited. For instance, if you take out $100 per month toward dependent care, and then submit a claim for $200 the first mont
HCA stands for Health Care Account. This is the Flexible Spending Account you use for medical expenses. When you elect an amount for an HCA, all of the money in the account is available to you from the first day in your plan year, regardless of whether you have deposited it or not. For example, if you elect to have $1,000 taken out of your paycheck over the course of the plan year, that $1,000 is available to you for eligible expenses at any point during the plan year. If you meet your election (use the $1,000) prior to the end of the plan year, the deduction will continue to be taken from your paycheck to “repay” the Flexible Spending HCA. Your employer will set the limit of how much money you can elect to deposit in an HCA. DCA stands for Dependent Care Account and is a little different. In this case, the FSA administrator can only pay out the amount that you have deposited. For instance, if you take out $100 per month toward dependent care, and then submit a claim for $200 the first
Related Questions
- What is the difference between a Medical Flexible Spending Account and a Dependent Care Flexible Spending Account?
- WHAT IS THE DIFFERENCE BETWEEN A FLEXIBLE SPENDING ACCOUNT (FSA) AND A HEALTH SAVINGS ACCOUNT (HSA)?
- What Is the Difference Between a Health Savings Account & a Flexible Spending Account?
