Flexible Spending Accounts (FSAs)
 
Home
Understanding FSAs
Calculate Savings
Easy Reimbursement
Manage Your Account
Eligible Expenses
Understanding FSAs
Health Care FSA Dependent Care FSA Transportation FSA
Aetna
Shortcuts
Aetna Aetna
Health Care Flexible Spending Account

How Does It Work?
A Health Care FSA can reimburse you for eligible Health Care expenses that are not covered by your health insurance plan. These include deductibles, copays and certain out-of-pocket expenses.


back to top

How Much Should I Contribute?
The IRS does not limit contributions to a Health Care FSA, but many employers limit contributions to between $2,500 and $5,000. Your enrollment materials will specify a maximum annual amount you can set aside in your account.

Consider last year's health-related expenses, including medical, dental, vision or pharmacy costs you foresee that might not be covered under your health plan. Also consider any changes in your family status that might have an impact on these expenses.

For help deciding how much to contribute, check out the FSA Savings Calculator .


back to top

What are Eligible Expenses?
All expenses must be qualified medical, vision, pharmacy, or dental benefit expenses as defined in Section 213(d) of the Internal Revenue Code.

Below are examples of eligible expenses that are reimbursed through a Health Care FSA:
  • Chiropractic treatment
  • Contact lenses/saline solution
  • Copayments/coinsurance
  • Deductibles
  • Dental work/orthodontia
  • Doctor’s fees
  • Eye exams
  • Eyeglasses
  • Hearing aids
  • Laboratory fees
  • OTC medicines (if your plan allows)
  • Prescriptions
  • Psychiatric treatment
  • Routine physicals

Refer to Health Care Eligible Expenses and OTC expenses for complete lists.


back to top

How Much Could I Save in Taxes?
Your savings will depend on several factors, including your income, tax bracket and yearly health care expenses. For example, assuming an annual income of $40,000, a 15% tax bracket, and estimated health care expenses of $2,000, your tax savings will be approximately $453 annually by using a Health Care FSA.

  With FSA Without FSA FSA Savings
Annual Income: $40,000 $40,000  
Estimated Health Care Pretax Contributions: $2,000 $0  
Taxable Income: $38,000 $40,000  
Estimated Federal Withholding: $5,163 $5,463  
Estimated FICA: $2,907 $3,060  
Health Care Expenses (without FSA): $0 $2,000  
Net Pay: $29,930 $29,477 $453

Filing Status: Head of Household with one dependent. These projections are only estimates of 2006 tax information and should not be assumed to be tax advice.

Consult a tax advisor to determine the appropriate tax advice for your situation. To see how much YOU can save, check out the FSA Savings Calculator.


back to top 

What About Orthodontia?
Orthodontia is a reimbursable expense through your FSA account. We can reimburse you for eligible orthodontia services incurred during the current enrollment plan year. Initially, you must submit a signed FSA Health Care claim form along with:
  • the contract from the orthodontist, indicating the initial fee charged
  • estimated insurance payment
  • initial start date*
  • duration of treatment
  • proof of payment for reimbursement request of any partial or full down payment.
*Future dates of service cannot be submitted.

Orthodontia claims must be manually submitted utilizing an FSA Health Care Claim form available from your employer.


back to top 

How am I Reimbursed?
We make reimbursement easy! We offer several automatic reimbursement options so you don't have to complete a paper claim form. Please see your plan administrator to find out which options are available to you.



back to top

email this page   
medium small large
Aetna
Aetna

Important Links
Unable to include file /main/2004Brand/Content/importantlinks/fsa
Aetna
Search on These Related Keywords