Flexible Spending Accounts
The Flexible Spending Account (FSA) administered by HealthEquity | WageWorks* provides you with a way to pay for eligible health care and/or dependent care expenses with pre-tax dollars.
A Health Care FSA (PDF) pays for qualified health care expenses incurred by you and your eligible tax dependents that are not covered or reimbursed by your health insurance plan (e.g. copays, coinsurance, etc.).
The maximum amount you can contribute to a Health Care FSA is $2,750. You are able to roll over up to $550 of unused money in your Health Care FSA to the following plan year. You will forfeit any remaining balance over $550.
A Dependent Care FSA (PDF) may be used for eligible dependent care (day care, elder care) expenses incurred so that you may work. If you are married, your spouse must also work or go to school while you are at work to qualify for this plan. Your dependent care expenses must be for the care of one or more qualified dependent(s) but not for dependent health care expenses. Qualified dependent(s) for a dependent care FSA may include:
- Your child(ren) under age 13
- Dependents of any age who are mentally or physically incapable of caring for themselves, and whom you claim as a dependent on your federal income tax return
In order to contribute to either a Health Care FSA and/or a Dependent Care FSA, you must enroll within 31 days of the date of hire. To continue the FSA in subsequent years, participants must actively enroll each year during the Annual Enrollment period.
Participants may enroll in either the Health Care FSA or the Health Savings Account (HSA); per Federal law, you may not enroll in both accounts in one plan year.
Additionally, participants in the HDHP with HSA may not elect the Health Care FSA; the HSA is designed to reimburse you for all eligible, out-of-pocket health care expenses.
Below is an overview of how FSAs work. Be sure to note which expenses are covered, and not covered, under each account.
Keep in mind ...
If you enroll in a 2020 FSA, only qualified expenses incurred between January 1, 2020 and December 31, 2020 will be eligible for reimbursement. Claims must be submitted to WageWorks by March 31, 2021. Remember, you cannot use the Dependent Care FSA to reimburse for health care expenses incurred by a dependent.
|Health Care FSA||Dependent Care FSA|
|How much you can contribute per year||Between $120 and $2,750||
Between $120 and $5,000
If you are a highly compensated employee, your contribution to the Dependent Care FSA will be limited to $2,600 in 2020.*
|Examples of eligible expenses||
|Examples of non-eligible expenses||
*You are classified as a highly compensated employee as defined by the IRS if your compensation is equal to or exceeds $125,000.
Note: For Dependent Care FSA, if you are married, IRS regulations may impact how much you can deposit.
-- If your spouse has a Dependent Care FSA through his or her employer and you file a joint tax return your combined deposits cannot exceed $5,000.
-- If you are married and file separate tax returns the most you can contribute is $2,500.
If you enroll in a Health Care FSA, you will be issued a WageWorks debit card that may be used instead of cash or credit at health care providers and pharmacies for eligible services, goods, and prescriptions. Payment comes from your Health Care FSA; in most cases, you will not need to submit a claim or wait for reimbursement.
Through WageWorks’ “Pay My Provider” option, you may choose to have WageWorks pay a provider directly, or you may choose to submit a claim online through Wageworks’ “Pay Me Back” feature.
For more information regarding tools and resources available to manage your FSA, visit the WageWorks website.
First make sure that you or your provider submits the expense to any benefit plan in which you are covered for the same services. As a new hire or first-time participant in the Health Care FSA, your account is set to reimburse you automatically for eligible expenses using WageWorks’ Automatic Health Plan Claim (AHPC) feature. You may use the AHPC feature as long as you do not activate your WageWorks debit card; activating the card will turn the auto-pay feature off.
Automatic Health Plan Claim (AHPC)
When you visit a health care provider such as a doctor or dentist and are enrolled in one of the NYU medical plans, the NYU Dental Plan, and/or the NYU Vision Plan, your insurance carrier provides the amount of the transaction not covered by the health plan to WageWorks. The amount not covered represents the "out-of-pocket" cost for which your FSA can be used. A payment will be made directly to you from your FSA as long as the claim is filed and processed by the claims administrator by March 31 of the following calendar-year deadline.
Use Your WageWorks Health Care Card
You may use your Card instead of cash or credit at health care providers and pharmacies for eligible services, goods, and prescriptions. You can also use the Card at general merchants and through stores that have an industry standard (IIAS) check-out system that can automatically verify if the item is eligible for purchase with your account. If WageWorks is unable to determine that your Card was used to pay for eligible health care products and services, you will be contacted with instructions on how to submit verification of the expense.