FLEXIBLE SPENDING ACCOUNTS:
IMMEDIATE TAX SAVINGS
What is an FSA? A Flexible Spending Account (FSA) lets employees take home a larger paycheck by reducing their taxable income. Employees enrolled contribute tax-free dollars into an account that can be used throughout the year on qualified medical, dental and vision or qualified dependent care expenses — reducing out-of-pocket costs.
We offer three different types of accounts: A Medical FSA that covers general-purpose health expenses; a Limited Medical FSA that covers qualifying dental, vision and preventive care expenses and can also be paired with a High-Deductible Health Plan (HDHP) and a Health Savings Account (HSA); and a Dependent Care FSA that lets participants save money on day care expenses for children up to age 13 or a disabled spouse or dependent of any age.
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ALL ABOUT AN FSA
Employee enrolls through employer and sets an annual election amount, which will be available the first day of the plan year
Employee swipes the Discovery Benefits debit card for qualified expenses OR
Employee pays out of pocket and requests reimbursement
The 2020 IRS annual contribution limit for a Medical Flexible Spending Account is $2,750. The 2021 IRS limit is also $2,750.
Employee enrolls alongside an HSA and sets an annual election amount, which will be available the first day of the plan year
Employee swipes the Discovery Benefits debit card for qualified vision and dental expenses OR
Employee pays out of pocket and requests reimbursement
The 2020 IRS annual contribution limit for a Limited Medical Flexible Spending Account is $2,750. The 2021 IRS limit is also $2,750.
Employee enrolls in a Combination (or Post-Deductible) FSA and sets annual election amount
Employee uses account to pay for qualified vision and dental expenses until they've met the IRS deductible
Once the deductible has been met, employee's account converts into a Medical FSA and more expenses will be eligible
Employee enrolls and sets an annual election amount (to be eligible, the employee and his/her spouse must work, be looking for work or be full-time students)
Employee submits reimbursement request for day care expenses for children under age 13 OR
Employee submits reimbursement request for expenses related to a disabled spouse/dependent of any age
The 2020 IRS annual contribution limit for a Dependent Care Flexible Spending Account is $5,000. The 2021 IRS limit is also $5,000.
THE DISCOVERY BENEFITS DIFFERENCE
Discovery Benefits makes it easy for participants to maximize their savings with a Flexible Spending Account. Here's what sets us apart:
One card, one online account and one mobile app for all benefits
User-friendly technology that improves ease of accessing funds
Numerous carrier integrations
Transparent claim tracking and fast payment processing
Ongoing education to help participants make the most of funds
