Healthcare & Insurance Insurance FAQs

A Flexible Spending Account, or FSA, is an employee benefit program that allows you to set aside money, on a pre-tax basis, for certain health care and dependent care expenses. That means YOU keep MORE of your MONEY. FSAFEDS is the Federal Flexible Spending Account Program which is the FSA for most federal employees. FSAFEDS offers three types of accounts: Health Care FSA (HCFSA), which is used to pay for eligible medical, dental, and vision care expenses. Limited Expense Health Care FSA (LEX HCFSA), which is used to pay for qualified out-of-pocket dental and vision care expenses Dependent Care FSA (DCFSA), which is used to pay qualified out-of-pocket dependent care expenses The average FSAFEDS participant saves 30% on their eligible out-of-pocket expenses as a result of being enrolled. To find out more about FSAFEDS or to sign up, visit www.FSAFEDS.com.

It’s a new feature for Health Care Flexible Spending Accounts (HCFSA) and Limited Expense.(LEXFSA). If you haven’t spent all the funds in your health care FSA by December 31st, you can carry over up to $500 into another health care FSA into the subsequent year.  This helps you avoid forfeiting your unspent FSA dollars. To use carryover, you must be employed by an FSAFEDS-participating agency and make all of your payroll contributions throughout the year, and you must remember to re-enroll for following year.

No. By IRS law, annuitants cannot participate in flexible spending accounts.  FSAs are a salary benefit and an annuity is not salary.

Participation next year depends on when you retire during the year.  By IRS law, annuitants cannot participate in flexible spending accounts.  FSAs are a salary benefit and an annuity is not salary.  You can enroll for next year and participate in FSAFEDS until the date of your retirement.  Carefully calculate your anticipated eligible expenses up to that date, because you will not be able to file claims for expenses you incur after your retirement date.  If you retire January 1st of next year then you cannot enroll in FSAFEDS.

No.  If you use your health care flexible spending account to pay for eligible expenses, you cannot deduct those same expenses from your federal income tax return.  Keep in mind that by IRS law, you are only allowed to deduct medical expenses that exceed 10% of your gross income.  The advantage of the health care flexible spending account is that you can get a tax benefit on health expenses below that threshold. 

No, flexible spending accounts are a pre-tax benefit.  By using pre-tax dollars to pay for eligible health care and dependent care expenses, a flexible spending account (FSA) gives you an immediate discount on these expenses that equals the taxes you would otherwise pay on that money. In other words, with an FSA, you can both reduce your taxes and get more for your money by saving from 20% to more than 40% you would normally pay for out-of-pocket health care and dependent care expenses with after-tax (as opposed to taxed) dollars.

Yes, you can use FSAFEDS. Your husband will still pay a copay.Deductibles and copays that you and your eligible family members incur are reimbursable whether you use your FEHB health plan or another health insurance plan. 

Yes, this is one of the few qualifying events that will allow you to enroll in an FSA outside of the annual Open Season.

A Dependent Care FSA (DCFSA) is used to pay for childcare or adult dependent care expenses that are necessary to allow you and your spouse, if married, to work, look for work or attend school full-time. However, if you did not find a job and have no earned income for the year, your dependent care costs are not eligible. For more information, refer to www.FSAFEDS.com.

Since 2015, each flexible spending account has a minimum contribution of $100 per year.  The previous minimum contribution was $250.