Selecting Your Flexible Spending Accounts
The Flexible Spending Accounts (Medical Expense Account and Dependent Care Account) section allows you to enter a tax-deferred amount that you can use to pay for your, pharmacy, dental, vision, and approved over-the-counter expenses (covered health expenses will automatically be paid out of your Health Reimbursement Account first if enrolled in one of the CDH health plans) not covered by your insurance or any other plan or dependent day care expenses.
Medical Expense Amount - This is a voluntary pre-tax deduction which allows you to set aside an amount you determine for unreimbursed dental, vision, pharmacy, and over-the-counter medicines (IRS rules for over-the-counter expenses require a prescription for OTC medicines) for the employee and eligible dependents. Be very conservative with this amount because the Health Reimbursement Account will automatically pay covered health expenses first. If the Health Reimbursement Account is exhausted, the FSA Medical Expense Account will reimburse covered health expenses.
Remember: Regarding the Flexible Spending Accounts (FSA):
Maximum contribution for Medical Expense reduced to $2,500 per year. Maximum contribution for Dependent Care remains at $5,000 per year.
- Enter an amount (if desired) in the Medical Expense Amount text box. The minimum amount is $10.00. The maximum amount is $96.15.
- Enter an amount (if desired) in the Dependent Care Amount text box. The minimum amount is $10.00. The maximum amount is $192.30. This amount is a voluntary pre-tax deduction, which allows you to set aside an amount you determine for children age 13 and under or adult day care expenses.
You have now completed the benefits coverage selection for yourself. Now is the time to determine if you are going to enroll any dependents.