Healthcare Flexible Spending Account

Health Care FSA – How Does It Work?

A flexible spending account is a pre-tax account that sets aside money from your paycheck before taxes are taken out.  You can then use your pre-tax Health Care FSA dollars to pay for eligible health care expenses throughout the plan year.  You save money on expenses you’re already paying for, like doctors’ office visits, prescription drugs, and much more.

You can use your Health Care FSA to pay for health care expenses incurred by the following people even if they are not covered by your Carnegie health plan:

  • Yourself
  • Your spouse (but not your same-sex partner, according to federal law)
  • Your qualifying child (including children up to age 26, whether married or unmarried)

Health Care FSA Facts

  • Health Care FSAs are limited to $2,650 per year per employer.  If you’re married, your spouse can put up to $2,650 in an FSA with their employer too.
  • You can use funds in your FSA to pay for certain medical and dental expenses for you, your spouse if you’re married, and your dependents.
    • You can spend FSA funds to pay deductibles and copayments, but not for insurance premiums.
    • You can spend FSA funds on prescription medications, as well as over-the-counter medicines with a doctor's prescription.  FSAs may also be used to cover costs of medical equipment like crutches, supplies like bandages, and diagnostic devices like blood sugar test kits.
    • See a list of generally permitted medical and dental expenses.
    • If you are a current participant and fail to re-enroll during open enrollment, your health care FSA deductions will not roll over into the next plan year.

Health Care FSA Maximum 2018 Contribution: $2,650

  • Carnegie employees may contribute up to $2,650 to a Health Care FSA in 2018.  The total amount selected will be divided by the remaining pay periods in the calendar year.
  • Maximum contribution limits change annually based on IRS determinations.

FSA Grace Period

You generally must use the money in an FSA within the plan year.  However, Carnegie provides a "grace period" of up to 2 ½ extra months to use the money in your FSA.

At the end of the year or grace period, you lose any money left over in your FSA. It is important to plan carefully and not put more money in your FSA than you think you'll spend within a year on things like copayments, coinsurance, drugs, and other allowed health care costs.

Flexible Spending Debit Card

The Health Care FSA debit card, administered through the 125 Company, pays for many eligible health care expenses at the point of sale using funds from an employee's health care FSA. That means less hassle and less paperwork. 

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