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Healthcare Benefits

Employee Benefits

Healthcare Flexible Spending Account

A WageWorks® Healthcare Flexible Spending Account (FSA) is a pre-tax benefit account used to pay for eligible medical, dental, and vision care expenses that aren’t covered by your insurance plan or elsewhere. It’s a smart, simple way to save money while keeping you and your family healthy and protected.

Save Money While Keeping You and Your Family Healthy

Spot Photo HC Card Final

Why enroll in a WageWorks Healthcare FSA?

"Signing up for a WageWorks Healthcare FSA is one of the smartest moves I’ve made. I paid for copayments at the doctor’s office, new eyeglasses, and orthodontia work for me and my family with tax-free money, and I ended up with more than $700 in take-home pay than last year. I’m definitely re-enrolling this year!"

- A happy WageWorks Healthcare FSA participant

WageWorks Healthcare FSA: See It In Action

Healthcare FSA 101

Savings with Your Healthcare FSA

A Healthcare FSA lets you pay for qualified out-of-pocket healthcare expenses on a pre-tax basis. The money you contribute to a Healthcare FSA is not subject to payroll taxes, so you end up paying less in taxes and taking home more of your paycheck.

Use this calculator to see how much you can save with a Healthcare FSA. 

Your Estimated Tax Savings
Without Healthcare FSA With Healthcare FSA
Gross annual pay (estimate) $60,000 Gross annual pay (estimate) $60,000
Estimated tax rate (30%) -$18,000 Max. annual Healthcare FSA contribution -$2,700
Net annual pay =$42,000 Adjusted gross pay =$57,300
Estimated annual healthcare expenses -$2,700 Estimated tax rate (30%) -$17,190
Final take-home pay =$39,300 Final take-home pay =$40,110
Take home this much more with a Healthcare Account $810

All figures in this table are estimates and based on an annual salary of $60,000 and maximum contribution limits to the benefit account. Your salary, tax rate, healthcare expenses, and tax savings may be different.

Contributing to Your Healthcare FSA

You can contribute up to a maximum of $2,750* to your Healthcare FSA each year. The IRS sets the annual contribution limits. A different limit may apply to you according to your employer’s plan.

*Annual contribution limit for 2020

Estimating Contributions to Your Healthcare FSA

A Healthcare FSA is an annual account. As a rule, the money you contribute to your Healthcare FSA must be used within the plan year.

That’s why it’s important to estimate how much you spend on eligible healthcare expenses for you and your eligible dependents each year before you decide how much to contribute to your Healthcare FSA.

Use this calculator to estimate your annual eligible expenses and determine an annual Healthcare FSA election amount that’s right for you and your family.

Changing Your Healthcare FSA During the Year

You should plan on a Healthcare FSA annual election amount that meets your needs for the entire plan year. As a rule, you can’t change your Healthcare FSA election amount during your plan year.

But there are limited circumstances when you can make changes. For example, if you experience what’s called a Qualifying Life Event, like a marriage or a birth, you may change your Healthcare FSA election amount mid-year.

It’s important to note that if you leave your job, any money left unspent in your Healthcare FSA stays with your employer. You can’t take your Healthcare FSA with you if you leave your company. But if you quit or are terminated from your job and you still have money left in your account, you may elect COBRA to continue your Healthcare FSA through the end of your plan year.

Avoiding “Use It or Lose It” with Your Healthcare FSA

Nervous about enrolling in a Healthcare FSA because you’re afraid of losing money left unspent in your account at the end of your plan year? Don’t be!

While it’s always important to choose your annual election amount carefully (this calculator can help), the “use it or lose it” rule no longer applies to all types of Healthcare FSAs.

What happens to money left unspent in your account at the end of a plan year depends on the type of Healthcare FSA your employer has chosen for its employees. Depending on your employer’s plan, you may:

  • Carry over up to $550 (depending on your employer’s plan) left in your account from one plan year to the next
  • • Have a grace period of up to 2½ months after your plan year ends during which you can spend down money left in your account
  • • Forfeit any money left unspent in your account at the end of your plan year to your employer

Check with your employer to find out which type of Healthcare FSA you have:

Enrolling in Your Healthcare FSA

You enroll in or renew your enrollment in your Healthcare FSA through your employer during your Open Enrollment period. Your human resources department or benefits administrator can tell you when employees in your organization can enroll in a Healthcare FSA and help you get started. 

Key Features and Benefits of Your WageWorks Healthcare FSA

Automatic Contributions Make Saving Simple

WageWorks makes saving simple. You decide how much to contribute to your Healthcare FSA, and funds are withdrawn automatically from each paycheck for deposit into your account before taxes are deducted. The total amount you elect to contribute to your Healthcare FSA each year is available on day one of your plan year.

Variety of Payment Options Make Your Healthcare FSA Easy to Use

With a variety of convenient payment options, your WageWorks Healthcare FSA makes it easy for you to get reimbursed for hundreds of eligible healthcare expenses, like copayments for doctor visits, prescription drugs, and new eyeglasses or contact lenses. 

Payment options include:

  • Pay My Provider. Arrange for convenient direct payments to your healthcare provider. Simply log into your WageWorks account and fill out a form to have eligible expenses paid directly from your account.
  • Pay Me Back. Arrange for account funds to be directly deposited into your bank account or a check to be mailed to reimburse you for eligible expenses you've already paid.
  • Pay by a Prepaid Card. Depending on your employer’s plan, you may use the convenient WageWorks Healthcare Card associated with your account to pay for hundreds of eligible healthcare products and services. If you have more than one WageWorks account, this smart prepaid card knows which account to draw money from first. Just don’t forget to save your receipts as some expenses charged to your prepaid card may need to be verified.

Learn more about these payment options

Web Portal and Mobile App Make Your Healthcare FSA Easy to Manage

WageWorks makes it easy to manage your Healthcare FSA. Log into the WageWorks secure web portal to manage all aspects of your WageWorks account:

  • Check account balances
  • Submit claims and view claims status
  • Look up eligible expenses
  • Upload receipts to verify card transactions
  • Select your reimbursement methods (by check or direct deposit)
  • Choose to receive account alerts by email or text

The WageWorks EZ Receipts® mobile app puts the power of the WageWorks web portal in the palm of your hand. Download this handy app to your mobile device, log into your account, and check balances, submit claims, view transactions, snap photos of receipts, get account alerts by text or email—all on the go!

Employee Resource Center

Ready-to-use tools to help you make the most of your WageWorks benefits.