FSA: Flex spending plans for large groups
When your employees sign up with Priority Health’s flexible spending arrangement (FSA) administered by HealthEquity, they experience tax savings of up to 40% of every dollar they spend on health care deductibles, copayments, dental care, braces, glasses or contacts, child care and much more. They control their own health care expenses and keep a closer eye on their health, which may lead to reduced costs for you.
See if an FSA is right for you:
- Two options:
- FSA (or Limited-Purpose FSA with HSA plans), which can be used for eligible health care expenses, and
- Dependent care, which can be used for child care expenses for dependent children up to age 13
- Employees save money by setting aside tax-free dollars to pay for dependent care and/or certain health care expenses that are not paid for by their health insurance plan.
- You may offer just a health FSA, just a DCRA, or both, and employees may choose to enroll in either or both.
- You set the contribution limit for health care expenses; employees decide how much money to set aside.
- Employees can track their own account balances through their HealthEquity member portal or mobile app.
- For health FSAs: The entire annual amount an employee sets aside is available right away. If an employee set aside $600 ($50 a month) in a health FSA and has $600 in health care or medical expenses in February, they can be reimbursed the whole $600 from the FSA immediately. It doesn't matter that they have only contributed $100 of the $600 annual total so far.
- For DCRAs: The employee can only be reimbursed for what they have contributed so far. If they set aside $600 ($50 a month) in a DCRA account, and would like to make a withdrawal in February, they can only withdraw $100 since that's the amount contributed so far.
Under IRS rules, when an employee doesn't use their FSA/DCRA funds, they are returned to the employer.