A Flexible Spending Account: The benefit that benefits everyone
Everyone benefits from a flexible spending account (FSA). Employees like the additional pocket money and employers like the lower FICA contributions they receive as a tax benefit by reducing payroll taxes. Discovery Benefits is proud of its FSA administration because of the focus on customer support and continuous education. This dedication has led to an average flexible spending account participation rate of 28%, which is almost double the industry average, making a flexible spending account with Discovery Benefits a benefit that pays for itself.
Medical/Health FSA and Limited FSA
Set aside money to pay eligible expenses not covered by your medical insurance. There are two types of FSAs:
- Medical/Health FSA
Use a medical/health flexible spending account with traditional insurance plans. You can use a medical/health FSA to pay for things like coinsurance, prescriptions and medical equipment.
- Limited Health FSA
Use a limited flexible spending account when you have both a high deductible health plan (HDHP) and a health savings account (HSA). The limited FSA is available for dental and vision expenses only.
Dependent Care Flexible Spending Account (DCA)
This is the ideal FSA if you're looking to pay for dependent care expenses. With a dependent care flexible spending account, you set aside a portion of your paycheck to use for dependent care for children up to age 13, a disabled dependent of any age or a disabled spouse. To be eligible for a dependent care flexible spending account, both you and your spouse (if applicable) must work, be seeking work or be full-time students.
How much do you save with an FSA? Meet the Smiths
Mom and dad both work outside the home. Together they make $7,500 per month and claim four exemptions on their income taxes. One child attends school; the other goes to a home day care. Here's a comparison of what they save with a flexible spending account:
||With an FSA
||Without an FSA
|Gross Monthly Salary
|Medical Spending Account contribution
|Dependent Care Account contribution
|Post tax medical expenses
|Post tax dependent care expenses
The Smiths saved $218/month or $2,616/year with an FSA!
The Benefits of FSA Administration with Discovery Benefits
- Support. Discovery Benefits is committed to continuous education and customer support. Customer representatives are available via phone, email or online chat Monday – Friday 6 am – 9 pm CST. The Discovery Benefits mobile application allows you to: check your FSA balance, file a claim, view your account activity and more 24/7. Need a place to store receipts? No problem, your online portal has an “expense tracker” where you can store your receipts in one convenient place. All of this and more lead us to have the highest FSA participation rate in the country.
- Claims Exchange. Discovery Benefits can accept a claims exchange feed from health carriers at no additional charge. This means automatic reimbursements for flexible spending account participants. Discovery receives the claim information via file from the carrier and pays out the FSA dollars accordingly to the participants.
- One Card. Everyone is looking for simple. Discovery Benefits uses the same Benefits Debit Card for all products. Participants enrolled in multiple plans like that the process is streamlined and they can use the same card. The card’s technology ensures the correct balance is pulled when they run their card.
- Integration. Discovery Benefits understands strong integrations with our clients’ other partners saves everyone time and stress in the set-up process and on-going administration. Discovery has become a true industry leader in FSA administration with our ability to integrate with our clients’ platforms and technologies.
Your Steps to FSA Success (It doesn’t get much easier than this.)
- Create your account and log in
- Set up direct deposit
- Order additional debit cards for your spouse or dependents (at no cost!)
- Download the free Discovery Benefits mobile app
- Manage your flexible spending account on your time