Flexible Spending Accounts

Flexible Spending Account (FSA)
Employees can pay for eligible health care and dependent care expenses with pre-tax income through a Flexible Spending Account. Employees do not pay federal income tax on their deposit.

The Flexible Spending Account reimburses for eligible health care expenses that are not covered by insurance. Expenses may be incurred by the enrolled employee, their spouse, and their dependent children, regard­less of whether they are covered by the City’s medical, dental or vision plans.

How the Spending Accounts Work
You choose to contribute part of your earnings into the Medical Flexible Spending Account and/or the Dependent Care Flexible Spending Account. The accounts are maintained separately and you cannot make transfers between them. To check your FSA account online, visit www.benefitspaymentsystem.com.

Medical FSA Eligible Expenses
The following are examples of expenses eligible for reimbursement when they are not covered by a medical, dental or vision care plan. You cannot claim an expense as a federal income tax deduction if it is reimbursed through your Flexible Spending Account. (For a full list, go to www.irs.gov.)
  • Amount applied to any medical, dental, or vision plan deductible, or copayment, or fees in excess of plan limits;
  • Vision expenses not covered by a plan, includ­ing exams, eye glasses, contact lenses and solutions, optometrist and ophthalmologist fees and laser eye surgery;
  • Dental expenses not covered by a plan including cleanings, fillings and orthodontia;
  • Hearing aids;
  • Prescription drugs;
  • Diabetic supplies;
  • Specialized equipment for disabled persons;
  • Physical therapy, speech therapy, and psycho­therapy; and Smoking cessation programs.
  • Over-the-counter drugs, if to treat a medical condition.
Ineligible Expenses
The following expenses are examples of items not eligible for reimbursement through your Health Care Flexible Spending Account.
  • Over the Counter Drugs without a prescription;
  • Cosmetic expenses;
  • Fees for exercise/athletic/health clubs;
  • Premiums for health, dental, vision, or life insurance;
  • and Weight-loss programs for general health purposes.
Dependent FSA Eligible Expenses
You may claim dependent care expenses for any dependents that live with you and rely on you for more than half of their support as claimed on your taxes. Dependents include:
  • Children under the age of 13:
    • Persons of any age, if physically or mentally disabled, and claimed on your federal income tax return.
    • You may be reimbursed for day care expenses only if this enables you to work. If married, your spouse must also work or be looking for work, be a full-time student, or be disabled.
  • The following are examples of eligible expenses for reimbursement:
    • Expenses for child care
    • Care for a child under the age of 13 at a day camp, nursery school or private sitter
    • Care for an incapacitated adult who lives with you at least eight hours a day