Flexible Spending Accounts (FSAs) allow employees to defer income on a pre-tax basis to pay for expenses not covered by insurance. The limit on the annual amount permitted for medical FSA cannot exceed the lesser of your earned income or $2,850 ($3,050 for 2023).
FSAs may be used in conjunction with health plans other than the Consumer Driven Health Plan (CDHP), and cover eligible medical expenses such as co-pays, deductible, co-insurances, dental work, eye glasses, contact lenses, etc.
Discovery Benefits administers the Flexible Spending Accounts (FSAs). The FSA debit card is valid for five (5) years from its issue date. Participants will not receive a new debit card unless they are first time members or their card expires.
Each year, during open enrollment, employees elect the amount of pre-tax money to be allocated for out of pocket health expenses for the following year. The full annual election is available on the effective date of the enrollment. Weekly claims processing and debit card technology enable swift claims reimbursement. You may elect to allocate funds to an FSA even if you do not participate in the University medical/dental/vision plans.
The health FSA includes a carryover provision which allows a participant to carry over a maximum of $550 ($610 for 2023) of unused health FSA funds into the next plan year. Funds in excess of this carryover limit are considered 'use it or lose it', with all funds remaining at the end of the year (above the carryover limit) not recoverable by the participant.