Looking for ways to save on health care expenses? Consider the Health Care Flexible Spending Account (FSA), administered by WageWorks. With it, you can set aside up to $2,700 in pretax, per-paycheck dollars and use this money to pay expenses not covered by other benefit programs. Since you don’t pay federal or state income taxes on FSA contributions, your health care dollars go further. And your pretax contributions to your FSA reduce your taxable income.
If you’re enrolled in either the Anthem or Kaiser CDHP with HSA, you can use your FSA only for dental and vision expenses. See the CDHP FAQs for exceptions.
What You Need to Know
When you open an FSA, you choose your contribution total for the year (up to $2,700 in 2019). You’ll want to estimate your expenses carefully, because you can carry over only up to $500 from one year to the next. You’ll forfeit unused funds over $500.
When you enroll in the FSA with an annual election of $100 or more, you’ll receive a debit card from WageWorks, the FSA administrator. You can use it to pay eligible health care expenses. When you use your FSA debit card, your eligible expenses are automatically deducted from your account.
New cards are issued only if your existing card is expiring or if you are newly enrolling.
If you pay your eligible health expenses out of pocket, you can be reimbursed from your FSA by filing a claim through WageWorks.
What You Need to Do
- Elect your FSA contribution during Open Enrollment. You must make an election every year, because your contribution amount does not roll over from year to year.
- Plan carefully. You must incur eligible expenses between January 1 and December 31. You’ll forfeit any balance over $500 after December 31.
- When you receive your debit card from WageWorks, set up your Health Care FSA account using the WageWorks Secure web portal or the WageWorks mobile app. You can use either to manage your account and submit receipts.
- Choose to be reimbursed for payments you make to your care providers, or choose to pay providers directly from your FSA.
- Incur eligible expenses from January 1 through December 31, and claim reimbursements by March 31 of the following year.
- Save your receipts. You may be asked to provide copies to confirm your expenses.
- Don’t miss the reimbursement deadline. You have until March 31 of the following year (or up to 90 days from the day you leave Lam—whichever is earlier) to submit eligible expenses for reimbursement.