Health Care FSA

Health Care FSA Overview

Learn more about this benefit:

Overview Video

A health care Flexible Spending Account (FSA) is designed to help you use pre-tax payroll contributions to pay for most medical, dental, prescription, hearing and vision expenses not covered by other health care plans for you, your spouse and your eligible dependents.

If you’re enrolled in Consumer Choice 1, Consumer Choice 1 HSA Advance or Consumer Choice 2 and have a Health Savings Account, IRS rules say you cannot also have a General Purpose Health Care FSA. However, you can have a Limited Purpose Health Care FSA.


COVID-19 HSA/FSA Plan Updates

On March 27, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law. Included in this act were a number of provisions, mandatory and optional, with impacts to the Farm Credit Foundations benefits plan. You may now use your Health Savings Accounts (HSA) and Flexible Spending Accounts (FSA) funds to purchase over-the-cover (OTC) drugs and medications without a prescription from a physician. Learn more about this change.

FSA: Use It or Lose It

Tax advantage accounts have certain tax advantages; therefore, the IRS regulates all tax advantage accounts. By law, any funds not used for services during the year will be lost. In other words, "use it or lose it." See the website for the complete list of qualified expenses, Publication 502.

Changing your health care FSA contribution amount mid-year can only occur if you experience a qualifying status change. Contact Farm Credit Foundations for more information.

Managing Your Account

  • View your account activity and balance online

  • Request an electronic check, one time or recurring bill payments, such as orthodontics

  • Update your contact information

  • Order additional debit cards(HSA, Limited Purpose, and HealthCare Debit Card option)

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Using Your MasterCard Debit Card for Health Care FSA

You will receive a debit card when you enroll in the Health Care FSA Debit Card option. You can use your debit card for FSA expenses at most pharmacies and physician offices and wherever MasterCard debit cards are accepted.

Health care claims may be substantiated at time of checkout. If approved, you will be paid up to the plan year contribution amount you have elected – even if you do not have those funds yet available.

Learn more about what is required to substantiate your card transactions during the plan year.

Amount Available for Reimbursement

Your total annual health care contributions are available to be reimbursed at any time during the year. For example, if your claims exceed the balance in your health care spending account, you will be reimbursed up to the total amount you have elected to deposit for the year, regardless of the amount you have contributed at the time you submit your claim. Save your receipts, as you may have to show the IRS the expense was qualified.


Maximum Contribution Amount

You may contribute up to $2,750 a year to the Health Care Flexible Spending Account (FSA). When deciding the amount you wish to contribute to this account, take into consideration:

  • Known or fixed health care costs that are not covered by medical, dental or vision insurance.
  • Prescription co-payments you anticipate during the year.
  • What you might spend out-of-pocket for health care annually including over-the-counter drugs.
  • Deductibles required under the Medical/Dental Option you select.

Changing your health care FSA contribution amount mid-year can only occur if you experience a qualifying status change. Contact Farm Credit Foundations for more information.


Qualified Expenses for Health Care FSA

Qualified expenses eligible for reimbursement with FSAs include:

  • Deductibles and copayments not covered by insurance
  • Prescription drugs not covered by insurance
  • Eyeglasses and contact lenses
  • Hearing aids
  • Certain medically required supplies and equipment
  • Your portion of orthodontic expenses

 Visit PayFlex’s website for a list of eligible and non-eligible expenses.


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