The City offers two flexible spending accounts (FSAs), administered by WageWorks, that let you set aside tax-free money from your paycheck to pay for out-of-pocket expenses like deductibles, coinsurance, prescription drug copays and dependent care.
Because FSAs offer such favorable tax breaks, they have certain rules. Visit www.wageworks.com
You can participate in one or both of the FSAs - even if you don't enroll for City medical coverage:
Health Care FSA
Dependent Care FSA
Flexible Spending Accounts at a glance
||Health Care FSA
||Dependent Care FSA
|You can contribute
||$120 - $2,500/year - tax-free
||$120 - $5,000/year - tax-free (1)
|To reimburse yourself for
||Medical, dental and vision expenses considered tax-deductible but not covered by insurance including eligible expenses incurred by your dependents (2)
||Dependent care expenses for your eligible dependents (2)
(1) If you're married and file separate tax returns, the most you can contribute is $2,500/year.
(2) Rules and restrictions apply. Your dependents do not have to be covered under a City benefit plan.
How the FSAs work:
1. Estimate your health care and/or dependent care expenses separately.
You can use BCBST's Blue Access website at www.bcbst.com to:
View your personal health statement and see your projected expenses based on your claims
Use the health plan comparison tool to see your projected out-of-pocket costs
My Health Participants: don't forget about contributions the City makes into your Health Reimbursement Account (HRA) for committing to a health-conscious lifestyle.
2. Decide how much to contribute to each account.
Your contributions will be deducted from your paycheck on a pre-tax basis - that is, before taxes are taken out of your check - and deposited into your account(s). The IRS changed the "Use It or Lose It" rule a few years ago. Now, up to $500 can rollover into the next plan year. Any unused amount over $500 left in your account at the end of the year will be forfeited.
3. Pay your eligible expenses using one of the following options:
Use your WageWorks debit card.
It contains your Health Care FSA balance as well as your HRA balance and works like cash at any vendor that accepts health care debit cards.
Log onto your FSA/HRA account at www.wageworks.com and use the Pay My Provider or Pay Me Back features.
File a claim.
Pay the expense as you normally would. Then submit your receipts, along with a WageWorks claim form, via mail, email or fax to the address on the form.
Be sure to save your receipts and explanations of benefits (EOBs) in case you're later asked by WageWorks to verify a purchase. This is especially important if you use your debit card at a medical services provider. Visit www.wageworks.com for more plan and eligible expense details.