Pre-tax dollars to pay for medical, dental and dependent care services

What is an FSA?

An FSA is an employee benefit plan authorized by Internal Revenue Code Section 125. With an FSA, an eligible employee can elect to contribute funds on a voluntary, pre-tax basis that can be used to reimburse the employee for certain qualified expenses that have not been reimbursed from other coverage. This can generate significant tax savings for both the employee and the employer.

There are two types of accounts that can be offered through the FSA:

  • Health Care Account - this account is for certain health care expenses not paid by insurance. These include co-payments, deductibles, eyeglasses, physicals, prescriptions and other expenses.

  • Dependent Care Account - this account is for dependent care expenses that allow the employee (or the employee's spouse) to work, or to attend school full-time.

In addition, a Flexible Spending Account plan typically includes a Pre-Tax Premium Plan, to allow employees to pay for their share of health (and other) insurance premiums on a pre-tax basis through payroll deductions.

Helping Employees Decide How Much to Contribute

We make it easy for employees to figure out how much to contribute to their FSA with the following tools:

Lifetime Benefit Solutions makes it Convenient

Employees will enjoy the efficiency and convenience of administering their account through Lifetime Benefit Solutions, an affiliate of Univera Healthcare. They can submit their claims via mail, fax or e-mail. Tax-free reimbursement of expenses can be made by check-or by direct deposit into their bank account.

Lifetime Benefit Solutions also offers the Health Spending Card. The Health Spending Card automates reimbursement of eligible FSA expenses by paying the provider at the point of service. Employees can also use the Health Spending Card to pay section 132 Parking/Transit Account expenses. This offers additional tax savings and convenience.

And employees can enjoy the online convenience of the to view their account activity, download forms, access enrollment materials and other information, or submit claims.

How does a Flexible Spending Account benefit an employer

Offering a Flexible Spending Account to your employees can produce significant savings to the Employer through decreased FICA taxes. Here's an example of Estimated FICA Savings for Employers.

How does a Flexible Spending Account benefit an employee?

Offering a Flexible Spending Account to your employees can increase an Employee's spendable income and decrease income taxes because it is a pre-tax contribution. Here's an example of Estimated Employee Savings.

Learn more!

For more information, contact your sales consultant or broker.

Learn more about Flexible Spending Accounts (FSA) or calculate and submit your claims online:

Use pre-tax dollars to pay for your everyday expenses:

A Flexible Spending Account (FSA) offers a smart, simple way to set aside money tax free to cover the everyday expenses you know you'll have in the coming year. You can use it to pay for eligible non-covered medical or dental expenses, child care, and even dependent adult care costs.

Using pre-tax dollars increases your spendable income:

Because your contributions to an FSA are made before taxes are deducted from your pay, you reduce your total taxable income and get to keep more of every dollar you earn. You can choose one or both account options:

  • Health Care FSA (for your medical and dental expenses) - Ask your employer to find out if there is a minimum or maximum amount you can contribute.
  • Dependent Care FSA (for your child and/or adult dependent care expenses) - The IRS allows you to contribute up to $5,000 annually per family ($2,500 for married couples who file separate tax returns). Ask your employer if there is a minimum you can contribute.

Automatic claims transfer means no hassle:

If you are enrolled in one of our health and/or dental plans, your copayments, deductibles and other eligible out-of-pocket costs, such as prescription drugs and eyewear, will be automatically forwarded for processing under your FSA. You won't have to worry about submitting claims or receipts for these services.

For more information, Members: contact Lifetime Benefit Solutions.

Modal for Estimated Employee Savings

Modal for Estimated FICA Savings for Employers

IE Browser Modal