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Health Care FSA

U.S. Office of Personnel Management

A Health Care FSA (HCFSA) helps you pay for eligible health care expenses that are not paid by FEHB or any other insurance. A HCFSA is not insurance, but it can help you get more for your money by using pre-tax dollars to stretch the money you would normally spend out-of-pocket on health care services.

You make an annual election to a HCFSA. That election is taken from your salary in equal allotments before any taxes are calculated. Since your taxable income is reduced, you owe less tax. And, since the money allotted to your HCFSA is taken before taxes, that money goes much further. You have 20% – 40% more dollars to pay for eligible health care expenses, depending upon your tax situation and retirement plan. Your employing agency makes no contribution to the program, but your agency will pay all administrative fees associated with FSAFEDS on your behalf. The maximum amount you can allot to a HCFSA is $5,000 (per individual) for a Benefit Period and the minimum is $250.

The Federal workforce includes a number of employees married to each other. If each spouse/employee is eligible for FEHB coverage, both may enroll for a HCFSA up to the maximum of $5,000 each ($10,000 total). Both are covered under each other’s HCFSA. A HCFSA cannot be used to pay for health insurance, life insurance, long term care insurance or any other insurance premiums, or costs for Temporary Continuation of Coverage (TCC).

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