Flexible Spending Account (FSA)

  • A Flexible Spending Account is a funding account that's offered by some employers. You can use the funds in this type of account to pay for qualified medical or dependent care expenses on a tax-free basis. At the beginning of each plan year, you decide how much money to contribute; you can contribute up to the maximum dollar amount allowed by the IRS. You then can access these funds throughout the year.

    There are two types of FSAs:

    Healthcare FSA

    A healthcare FSA can cover medical, dental, or vision expenses that you would otherwise pay for out of pocket, such as:

    • Health plan deductibles, coinsurance, or copayments
    • Hospital charges and lab fees
    • Prescription drugs

    Your employer may limit the expenses your plan reimburses. Please contact your Human Resources office for more information.

    Dependent Care FSA

    Your employer may also choose to offer a dependent care FSA. You can use the funds in this type of account to pay for the costs of taking care of dependents. Typical expenses under this account include:

    • Charges for state-licensed daycare
    • Preschool
    • State-licensed elder care (unless it's for medical care)

    Expenses must be for dependents under the age of 13, or those physically or mentally incapable of caring for themselves.

    What are the benefits of an FSA?

    1. You aren't taxed when you deposit funds, or when you withdraw money for qualified healthcare expenses
    2. Your contributions are automatically withdrawn from each paycheck. No hassles!

    An FSA is an easy way to pay for healthcare expenses

    There are two ways that you can use your FSA to pay for eligible healthcare expenses:

    1. Use your healthcare payment card to pay for eligible expenses at approved merchants and providers that accept debit cards.
    2. If you don't pay with your healthcare payment card, you can submit a claim with receipts online and get reimbursed by check or direct deposit.

    Manage your Flexible Spending Account online

    Note:This material is not intended to be tax or legal advice. The reader should consult with his or her own tax advisor to determine the tax implications of purchasing the products discussed herein.

    Advice, if any, included in this material was not intended or written by Premera to be used, and it cannot be used, by any taxpayer for the purpose of avoiding penalties that may be imposed on the taxpayer.