Flexible Spending (FSA)
Flexible Spending Accounts (FSA) allow you to designate a set amount of money and have it taken out of each paycheck and deposited into an account to be used for specific expenses. Federal Income and Social Security taxes will not be withheld from your contributions, making your taxable income lower. You may enroll in the Healthcare FSA (for medical, dental, vision, pharmacy, and other related expenses) and/or the Dependent Care FSA (primarily for dependent daycare expenses). Use the money in these accounts to pay for eligible out-of-pocket healthcare (medical, dental, vision expenses) and dependent care (daycare) expenses for yourself, your spouse, your children or any person you claim as a dependent on your federal income tax return.
Over-the-counter (OTC) drugs are available without requiring a prescription. Some examples of allowed OTC items are:
- Cough medicines
- Cold medicines
- Allergy medicines
- Pain relievers, such as acetaminophen
Healthcare FSA's are limited to $3,200 per year per employer for 2024. If you're married, your spouse may contribute up to the max his employer allows as well.
For Dependent Care FSAs, you may contribute up to $5,000 if you are married and filing a joint return or if you are a single parent. If you are married and filing separately, you may contribute up to $2,500 per year per parent.
Remember to carefully estimate your plan year expenses when making an election. You must use all of the funds in your account by the end of the plan year or the money is forfeited per the IRS regulations.
The debit card provides a convenient way to pay for eligible expenses, thus eliminating the need to pay out of pocket, file claims, and be reimbursed. Medcom may request receipt documentation for your debit card transactions. Remember to retain all receipts, per IRS guidelines. Not all providers accept the FSA debit card, and for those providers who do not, you will pay at the time of transaction and complete a claim form to request reimbursement.
The IRS requires that any unused money in your account at the end of the plan year be forfeited. Be sure to use the entire amount of your FSA balance in order to avoid forfeitures.
2024 Plan Year Maximums
Healthcare FSA: $3,200
Dependent Care FSA: $5,000
If you are enrolled in the HSA Medical Plan (a High Deductible Health Plan), you also have the option to enroll in a Health Savings Account (HSA), which can also be used for medical, dental, vision, pharmacy, and other related expenses. A Limited Purpose Healthcare FSA is available for HSA plan participants. Limited Purpose FSAs are for dental and vision expenses only.
Healthcare FSA
For 2024, you may roll over up to $640 of unused Healthcare FSA monies into the next year's FSA plan, but you still want to estimate your current year FSA plan contribution carefully. If you are not electing the Healthcare FSA for the next plan year, a minimum balance of $25 is required to rollover your existing balance, and funds must be used in the following plan year. According to the IRS guidelines, all unused FSA funds in excess of $640 will be forfeited.
You are not eligible to participate in the Healthcare Flexible Spending Account (FSA) plan if you are currently enrolled in a Health Savings Account (HSA).
A list of eligible vs ineligible expenses is available on the Resources page.
Limited Purpose FSA
A Limited Purpose FSA is a healthcare spending account that can only be used for eligible vision and dental expenses. Unlike a Healthcare FSA, this account can be held at the same time as a Health Savings Account (HSA). When coordinated with an HSA, the limited purpose FSA can further reduce your taxes while allowing you to allocate HSA funds to other purposes – including retirement.
By eliminating the need to use your HSA funds for these expenses, you have more to spend on regular medical expenses. More important, funding dental and vision expenses from a limited purpose FSA may also allow you to keep more savings in your HSA. Over time, those additional savings can really add up.
Dependent Care FSA
If your spouse is not employed, your dependent care expenses are not eligible for reimbursement unless your spouse is a full-time student or is physically or mentally incapable of caring for himself / herself.
Eligible Dependent Care FSA expenses include before and after-school programs, licensed daycare centers, nursery school or preschool, summer day camps, transportation to and from eligible care, an adult-day-care center, or elder care (in your own home or someone else’s). You can elect a Dependent Care FSA even if you have declined health coverage
Eligible childcare providers can be individuals, such as a family member or friend. However, it's important to note that this category excludes individuals under the age of 19 who are related to you, including your own child or stepchild. Additionally, the caregiver cannot be someone whom you list as a dependent on your federal tax return.
To claim reimbursements for dependent care through this FSA, you must ensure that the service provider has either a federal tax ID number or a valid social security number. This documentation is essential to facilitate the reimbursement process.
Eligible Expenses Must Be for the Care of:
- A dependent child who is under age 13 and whom you claim as an exemption on your tax return
- A dependent child, elderly parent, or relative who is physically or mentally incapable of caring for himself or herself
Mobile and Online Member Tools
Once you are enrolled, you may access https://medcom.wealthcareportal.com and register as a member. You may access your balance and claims information, and view other important FSA plan information on this website.
Medcom also offers a free mobile app for FSA participants to access your accounts from anywhere at any time. You will enjoy convenient mobile options to check balances, view transaction details, request a reimbursement, and submit documentation on the go.
Debit Cards & Manual Claims
You will either use your debit card to pay for claims at the point-of-service, or submit a claim to the administrator for reimbursement.
Debit Card Purchases
You will receive a debit card for your FSA plan. This debit card may be used to pay for eligible medical care expenses. Using a debit card is a convenient way to pay for your FSA expenses as many health providers accept the debit card. When you use your debit card, the funds are pulled from your account and paid to the health provider directly. This eliminates the need for you to pay out-of-pocket and file a claim to be reimbursed.
Please remember to keep all FSA claim receipts, even if you use your debit card. Some debit card claims will require you to provide a receipt to the plan administrator. In the event the FSA administrator needs additional information from you, you will receive a communication requesting receipt(s).
Manual Claims
Not all vendors accept the debit card. Should you need to pay for an eligible expense and be reimbursed from your FSA, you will need to submit a claim to the address indicated on the claim form with appropriate documentation.
