Flexible Spending Account (FSA)

With an FSA, you save money by reducing your taxable income. And, you have money set aside to help pay for health care or dependent care.

An FSA works like this:

  • You arrange through your employer to make regular contributions to a UnitedHealthcare FSA from your paycheck before federal, state, or Social Security taxes are calculated.
  • As you pay for eligible medical or dependent care expenses, you reimburse yourself from your FSA by submitting a claim to UnitedHealthcare.
  • You can arrange to have your reimbursements deposited directly into your checking or savings account.
  • If you have a UnitedHealthcare medical plan, you can choose to have claims for medical, dental or vision expenses not covered by your plan automatically submitted for FSA reimbursement.

Not sure how much to set aside? Use the FSA Tax Savings Calculator.

FSA eligible and ineligible expenses

The Internal Revenue Service (IRS) determines what expenses can be paid for with a health care and dependent care FSA, although your employer may limit the list.

Use your health care FSA to pay for:

  • Your share of health plan expenses, like deductibles and copayments (insurance premiums do not qualify)
  • Eye glasses and contact lenses
  • Dental work, orthodontia or dentures
  • Starting January 1, 2011 you can no longer use a healthcare FSA to pay or be reimbursed for over the counter (OTC) drugs or medicines without a prescription

Use your dependent care FSA to pay for:

  • Day care services for your children under age 13
  • Care for other qualifying dependents who share your residence for at least half of the year and are unable to take care of themselves
  • Live-in help to care for your minor or adult dependents as described above

Review your employer's benefits information for specific information about FSAs.

For more information, see: