Flexible Spending Accounts
A Flexible Spending Account (FSA) is an employer-sponsored benefit that allows you to pay for certain non-covered medical expenses with pre-tax income for a plan year.
Flexible Spending Accounts
Introductory FSA Video
Frequently Asked Questions
What is a Health Flexible Spending Account?
A healthcare flexible spending account (FSA) is an employer-sponsored benefit that allows you to set aside pre-tax dollars into an account to be used for eligible medical, dental and vision expenses for you, your spouse, and your eligible dependents.
Is a Healthcare FSA the same thing as a Dependent Care FSA?
A Healthcare FSA is set up to help you pay healthcare expenses for you and your dependents. A Dependent Care FSA is to help you pay for childcare and elder care expenses so you can continue to work.
Why should I participate in an Flexible Spending Account?
Contributions to the FSA are deducted from your paycheck on a pre-tax basis, reducing your taxable income. You can increase your spendable income by an average of 30% of your annual contribution with the tax savings.
How does the Debit MasterCard® factor in?
By participating in the FSA plan, your group may offer a Debit MasterCard®. The debit card can be used right away for medical expenses. Simply pay for your medical expenses at the point of sale with your card. You will not be paying out-of-pocket; therefore you will no longer need to fill out manual claim forms and wait for reimbursement as described above in the traditional format!
How is a Flexible Spending Account funded?
Your annual election will be divided by the number of pay periods in your plan year. This amount will be deducted from your paycheck before taxes are assessed.
What expenses are eligible for reimbursement under a Flexible Spending Account?
You can use an FSA plan to pay for eligible health plan co-pays, deductibles, co-insurance, eyeglasses, dental care, and certain medical supplies, as outlined in your plan document. For additional information see IRS Publication 502.
You can also shop a full list of FSA-eligible items in our FSA Store.
What is a Letter of Medical Necessity?
A Letter of Medical Necessity is a letter written by your doctor, verifying that the treatment, supplies or medication you are buying with your Healthcare FSA is for a diagnosis, treatment, or prevention of a disease. This letter is required by the IRS for certain eligible expenses. Review the list of eligible expenses to see if you need a Letter of Medical Necessity for a particular type of expense.
How will I know if items are FSA-eligible?
Does BMA have a Flexible Spending Account Mobile App?
How do I know how much money to contribute to my Flexible Spending Account?
Annual contribution may not exceed $2,750 per year, as determined by the IRS. A different limit may apply to you according to your employer’s plan, refer to your plan document for specific limit amounts.
Take a look at last year’s out-of-pocket medical expenses to get the best idea. Calculate the amount of recurring medical expenses to determine what your contribution amount should be.
To estimate your annual medical costs and help determine your best contribution amount, Click Here to download BMA’s reimbursement worksheet.BMA_FSA-Expense-Worksheet_Eng_Span_Flip