Use the Flex Spending Account to Save $$$

The Flex Spending Account (FSA) is a program PEF and the state negotiated to help members save money on their taxes. The FSA has two benefits, the Health Care Spending Account (HCSAccount) and the Dependent Care Advantage Account (DCAAccount)--that help you pay for health care or dependent care with pre-tax dollars. Even if you enrolled last year you must enroll again this year.

Enrolling in either benefit is voluntary. Savings will vary depending on your annual income, the number of dependents you claim on your taxes, and the amount of money you contribute through payroll deductions to your HCSAccount and/or DCAAccount.

You may not pay directly for eligible expenses from these accounts. You must pay the expenses first and then submit claims for reimbursement from your HCSAccount or DCAAccount.

How does the Health Care Spending Account work?

If eligible, you may contribute any amount from $100 to $4,000 annually in pre-tax dollars to pay for out-of-pocket medical, dental, vision, or hearing costs not reimbursed by health insurance. Some examples of allowable costs are prescription drug copayments, dental implants, and orthodontia fees paid to non-participating providers, deductibles, laser eye surgery and contact lenses. Reimbursement for certain over-the-counter drugs and supplies is also available. A list of eligible OTC items is posted at www.flexspend.state.ny.us.

To enroll in the HCSAccount you must estimate your annual out-of-pocket costs, and then decide how much money to have withheld from your paycheck. It's important to estimate conservatively because if you don't file claims for reimbursement of the entire amount, you will lose any remaining funds. Once enrolled you can mail or fax claims, then receive reimbursement by check or direct deposit.

The 2009 open enrollment period for the HCSAccount is 9/22-11/14/08. An on-line enrollment process allows you to enroll at www.flexspend.state.ny.us. There are no paper forms to mail in. You can also enroll by calling 1-800-358-7202 and a customer service representative will take your application. If you have additional questions you may email them to fsa@goer.state.ny.us. 

How does the Dependent Care Advantage Account work?

If you pay a caregiver to care for your child, elderly parent, or disabled spouse in order to work, you can set aside up to $5,000 in pre-tax salary through payroll deduction to help pay for these expenses. 

Examples of expenses eligible for DCAAccount reimbursement include child care expenses (up to age 13), summer day camp, before/after school programs, adult day care, home aide, and housekeeper or cook (these last two must provide custodial care to be considered eligible expenses).  

Effective 1/1/09 the employer contribution will resume, providing up to $800 for enrollees based on annual salary.  The salary ranges are as follows:

The 2009 open enrollment period for the DCAAccount is 9/22-11/14/08. You may enroll on-line at www.flexspend.state.ny.us or by calling 1-800-358-7202. A customer service representative will take your application. If you have additional questions you may email them to fsa@goer.state.ny.us.