Health Reimbursement Arrangement
With an FSA, you can set aside up to $2,650 (annual deduction limitation per employee) a year pre-tax to pay for out-of-pocket medical expenses, including orthodontic care. If you spread the treatment plan over two years, you could use up to $5,300 in FSA funds to cover the orthodontic bills. The tax savings could cover from 18 to 25 percent of the cost (depending on your tax bracket).
See the FSA flyer to learn how you can offset costs for orthodontic services.
FSA dollars are “use-it-or-lose-it” funds. Account balances greater than $500 cannot be carried over from year to year. If you have any unused funds exceeding $500 at the end of the plan year (end of the grace period), those funds will be forfeited per IRS requirements.
A dependent care FSA provides a way to pay dependent care expenses and lower your taxable income. You direct part of your before-tax pay into a special account to pay work-related dependent care costs. You can use your account throughout the year to help pay for eligible expenses. Your expense must be for the purpose of allowing you and, if married, your spouse to be employed. For more information, contact HealthSCOPE Benefits at 1-888-763-8232.
The Limited Purpose FSA is a tax-advantaged account that allows employees to set aside a portion of earnings to pay for out-of-pocket dental and vision expenses. Employees who contribute to an HSA may also elect the Limited Purpose FSA. For more information, contact HealthSCOPE Benefits at 1-888-763-8232.
The Medical FSA is a tax-advantaged account that allows employees to set aside a portion of earnings to pay for qualified health care expenses that are not paid by insurance (i.e. copayments, deductibles, and coinsurance). An FSA may also be used to pay for things like prescription eyeglasses and Lasik surgery. Generally, allowable items are the same as those allowed for the medical tax deduction.
The HealthCare FSA is a tax-free account that allows a person to pay for essential health care expenses that are not covered or are partially covered by your medical, pharmacy, dental and vision plans. For more information regarding the FSA contact HealthSCOPE Benefits at 1-888-763-8232, press 2 then press “#” then press 3#.
The FSA is a use it or lose it account and the HSA/HRA rolls over from year to year, month to month. The FSA does allow up to $500 to roll over from year to year.
An HSA is a Health Savings Account that also receives tax-free contributions from PEBP but also allows the participant to make voluntarily contribute to their HSA through pre-tax payroll deductions. If you leave State Service the money will stay with you until it is spent by you. Not everyone is eligible for an HSA.
An HRA is a Health Reimbursement Arrangement with only PEBP contributions. You are not eligible to make your own contributions to this account. If you leave State services this money will go back to the State. Everyone on the CDHP/PPO plan is eligible for an HRA.