Flexible Spending Accounts (FSAs)

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Use the FSA to Save on Expenses

A flexible spending account (FSA), administered by Health Equity, allows you to set aside tax-free money to help pay for eligible out-of-pocket expenses.

  • There are three types of FSAs that you can choose from: the standard FSA, the Limited Purpose FSA (LPFSA), and the Dependent Care FSA (DCFSA).
  • Use the information below to help you decide which FSA is right for you. You can also read the Health Equity guides for Comparing FSA Options and Things to Know About the FSA.

Important Note

You cannot have “double coverage” for medical and prescription drug expenses under both an HSA medical plan and a flexible spending account (FSA). If you are enrolled in an HSA, read below for information about how you can use the Limited Purpose FSA (LPFSA) for dental and vision expenses.

Resources

You can manage your FSA, file claims for reimbursement, access a full list of eligible expenses, and more at HealthEquity.com.

FSA

The standard FSA can be used to pay for eligible medical, prescription drug, dental, and vision expenses not covered by your insurance.

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How it Works

How much can I contribute?

  • $100 minimum
  • $3,200 maximum

How do I access and use the FSA money?

You will receive a debit card to use for eligible expenses. Funds are immediately available.

Who can use the FSA money?

If you are enrolled in the Basic PPO Plan or Enhanced PPO Plan, or even if you don’t elect Michaels medical coverage, you can use the money to pay for eligible medical, prescription drug, dental, and vision expenses that your health care plans don’t cover.

This applies to:

  • Yourself
  • Any dependents you claim on your federal tax return
  • Your children under age 26, even if they are not covered by a Michaels benefit plan

Under IRS rules, expenses for domestic partners cannot be paid from an FSA.

Dates & Deadlines

  • You can incur expenses until Dec. 31 of the plan year.
  • You have until March 31 after the plan year ends to submit your reimbursement claims for expenses.
Standard FSA Guide
FSA Eligible Expenses

Limited Purpose FSA

The Limited Purpose FSA (LPFSA) can be used to pay for dental and vision expenses, but cannot be used to pay for other health care expenses.

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How it Works

How much can I contribute?

  • $100 minimum
  • $3,200 maximum

How do I access and use the LPFSA money?

You will receive a debit card to use for eligible expenses. Funds are immediately available.

Who can use the LPFSA money?

If you are enrolled in the Michaels Choice HSA medical plan, you may use the Limited Purpose FSA to pay for dental and vision expenses only, and use your HSA to pay for eligible medical and prescription drug expenses.

You can use the money to pay for eligible dental and vision care expenses that your dental and vision plans don’t cover.

This applies to:

  • Yourself
  • Any dependents you claim on your federal tax return
  • Your children under age 26, even if they are not covered by a Michaels benefit plan

Under IRS rules, expenses for domestic partners cannot be paid from an LPFSA.

Dates & Deadlines

  • You can incur expenses until Dec. 31 of the plan year.
  • You have until March 31 after the plan year ends to submit your reimbursement claims for expenses.
LPFSA Guide
LPFSA Eligible Expenses

Dependent Care FSA

The Dependent Care FSA (DCFSA) can be used to pay for expenses for your dependents, such as day care, before and after school care, and summer day camp.

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How it Works

How much can I contribute?

  • $100 minimum
  • $5,000 maximum (or $2,500 maximum if married but filing separately from your spouse)

How do I access and use the DCFSA money?

You submit claims for reimbursements. Funds are available after contributions to the account have been made.

How can I use the DCFSA money?

You can use the DCFSA to get reimbursed for dependent care expenses incurred, allowing you and your spouse to work.

This includes:

  • Nursery schools
  • Licensed day care centers (including adult day care facilities and centers for disabled dependents)
  • In-home day care providers
  • Before- and after-school care (if not already included in tuition)
  • Summer day camp, but not overnight camp

Who can use the money?

You can use the money to pay for eligible dependent care expenses for:

  • Children under age 13 you claim on your federal tax return as dependents (or for whom you are the custodial parent if divorced, regardless of who claims the tax exemption).
  • A spouse or dependent who is physically or mentally incapable of self-care and lives in your home for more than half the year.

Under IRS rules, expenses for domestic partners cannot be paid from a DCFSA.

Dates & Deadlines

  • You lose any remaining funds in your account as of Dec. 31 of the plan year.
  • You have until March 31 after the plan year ends to submit your reimbursement claims for expenses.
DCFSA Guide
DCFSA Eligible Expenses

Verifying Eligible Expenses

Health Equity has a couple of ways that they verify FSA card transactions that do not require substantiation, while other times a receipt is required.

When you don’t need a receipt When a receipt is required
  • IIAS store or pharmacy purchases (IIAS is a required approval system the IRS requires all merchants who sell goods that have FSA-eligible items; find more information at seg-is.org)
  • Prescription or eligible over-the-counter (OTC) purchases
  • Co-payments
  • Flat co-payment amounts at a doctor, dentist, vision provider, or hospital where said flat co-pays were provided
  • Recurring transactions
  • Payment made at the same location and for the same dollar amount as a prior payment for which the receipt was already approved by Health Equity at least once
  • Doctor’s office, hospital, dentist, or vision provider where the health plan has a deductible or coinsurance amount
  • Co-insurance and deductibles (assuming carrier files, if applicable, are unable to exactly substantiate the expense)
  • Purchases at 90% pharmacies
  • An odd dollar amount that does not match one of the flat co-pay amounts provided

Provider

Health Equity

Flexible Spending Accounts (FSA)

Contact

Phone: 877-924-3967