Maximize your income with a healthcare FSA
Save on predictable healthcare expenses with a flexible spending account by setting aside pre-tax dollars to pay for eligible expenses.
What is a healthcare FSA?
A flexible spending account (FSA) is an employer-sponsored benefit that allows you to pay for eligible healthcare expenses on a pre-tax basis. If you expect to incur healthcare expenses that won't be reimbursed by another plan, FSAs are a great way to save money while covering those costs.
How does it benefit me?
An FSA saves you money. The contributions you make to an FSA are deducted from your pay before your federal, FICA and state taxes are calculated, and are not considered taxable income by the IRS. As a result, you decrease your taxable income and increase your spendable income. You can save hundreds.
The chart below illustrates potential savings at a variety of tax rates and contribution levels:
Federal Tax Rate
Annual FSA Contribution
Annual Tax Savings*

15%

$1,500

$340

15%

$2,500

$566

25%

$1,500

$490

25%

$2,500

$816

33%

$1,500

$610

33%

$2,500

$1,016

*For illustrative purposes only. Based on 7.65% FICA. Your tax situation may be different. Consult a tax advisor.

How a Healthcare FSA Works
You will need to determine an annual election amount to contribute to your FSA. This annual election amount will be deducted evenly out of each pay check on a pre-tax basis and put into your FSA. You can then use the pre-tax dollars to pay for eligible expenses.
One debit card will be issued to you automatically after you enroll in the plan. You may request one additional card in a dependents name by contacting CompuSys/Erisa, or by submitting a Dependent Cared Debit Card Request Form. For more information on the Health Care Debit Card please click here.
A big perk to an FSA is that it is pre-funded, meaning that you will have access to your full annual election amount at the very beginning of the plan year, regardless of the amount contributed to date. That is like having a tax-free, interest-free loan to help you pay for healthcare expenses. So go ahead and schedule that laser eye surgery in January!
Be sure to only allocate dollars for predictable healthcare expenses. Any unused funds at the end of the plan year are forfeited, also called the use-it-or-lose-it rule. Changes to the annual election amount are only permitted due to a qualifying change of status such as marriage or birth of a child.
Who's Covered
An FSA covers eligible expenses for you and all of your dependents, even if they are not covered under your primary health plan.
Please click here to see what's covered.