FSA and HSA

Flexible Spending Accounts (Optional)

An FSA lets you set aside pre-tax dollars to pay for eligible health care and dependent care expenses. This means you can pay for eligible expenses with tax-free money while reducing your taxable income, saving on taxes and increasing your take-home pay. You can contribute up to the annual IRS limit as listed for each FSA, but be sure to calculate your contributions carefully as the plan is based on a calendar year. You can carry over up to $610 in unused Medical FSA funds to the next calendar year, but you will forfeit any other remaining funds.

• Medical FSA– can be used to pay for eligible out-of-pocket health care expenses like prescription drugs, co-pays, and vision and dental costs. Not available if enrolled in PPO Advantage Plan. Contribution limit is $3,200 for 2024.
• Limited Purpose FSA can be used only for eligible dental and vision expenses if enrolled in PPO Advantage Plan.  Medical expenses would be covered by your HSA.  Contribution limit is $3,200 for 2024.
• Dependent Care FSA: A dependent care FSA allows you to use pre-tax dollars to pay for eligible dependent care expenses like day care for your child, elderly parent or disabled spouse. Contribution limits $2,500 (married and file separately) or $5,000 (married and file jointly).

Health Savings Account (if enrolled in BCBS PPO Advantage Plan)

A health savings account (HSA) offers tax advantages and lets you save money to pay for health care expenses now and in the future. After you open an HSA, UCMC will contribute to your account:

• $500 for individual coverage
• $1,000 if you also cover family members

You decide how much you want to contribute to your HSA, up to IRS limits. Contribution limits $4,150 for individual coverage and $8,300 for family coverage. The contribution limits include UCM’s contribution.