PriorityFSA: flexible spending arrangements
Save up to 40% on health care expenses with an FSA
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PriorityFSA
SM flexible spending arrangement (sometimes called a "flex account") could give you tax savings of up to 40% of every dollar you spend on health care deductibles, copays, dental care, braces, glasses or contacts, child care and much more.
An FSA allows you to set aside dollars you've earned before you pay taxes on them. Then you use the money in your FSA to pay for dependent care and certain health expenses that are not paid for by your health insurance plan.
Setting up an FSA
- 2 kinds of expenses, 2 FSA options. You can choose to set up either a health expense or a dependent care expense FSA, or both, depending on what your employer offers.
- HSAs and FSAs. If you have a health savings account (HSA), there are limits to the kind of FSA you can have.
Learn about limited FSAs and HSAs. - Deciding your FSA total. At the beginning of the year, you decide how much money to set aside through the year.
Our PriorityFSA brochure (421KB PDF) includes worksheets to help you decide. - Set up payroll deductions. Your health expense FSA contributions are deducted from your paychecks by your employer.
- Get tax savings. The money you set aside gets transferred before state and federal income taxes are taken out of it. This reduces the taxes you pay.
See an example of how much you can save.
Using your FSA
- Your whole health FSA amount is immediately available. If you decide on a $600 total in January and start contributing $50 a month, and then in February you have $600 in qualified expenses, you can be reimbursed the whole $600 from your PriorityFSA account immediately.
- Only certain health care expenses qualify for reimbursement.
Learn which medical expenses qualify. - Requesting funds. In most cases, when you pay a copay at a doctor's office, have prescriptions filled, or use your Priority Health medical or dental benefits, you will be reimbursed automatically for that expense from your health FSA - no paperwork needed. If you want to opt out of automatic reimbursement you'll need to contact Customer Service.
Learn more about reimbursement. - Use it or lose it. If you don't spend the total amount in your FSA during your plan year, the IRS says that you lose any money you didn't spend. A good reason get an eye exam or have your teeth cleaned before your plan renewal date!
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