Health Care FSA ("HCFSA") FAQs for Employee

What is a Health Care FSA ("HCFSA")?

An HCFSA is an opt-in employee benefit sponsored by your company. They're helping you save money on your essential expenses! You likely have out-of-pocket medical, dental, and vision spending because insurance doesn't cover everything. An HCFSA can help you pay for these types of expenses using contributions from your pay before taxes are deducted. 💸

What can I use an HCFSA on?

So many things! Any out-of-pocket expense for medical, dental, and vision care is eligible. Common items include:

  • Co-pays, deductibles, and co-insurance for doctor / dentist / hospital visits
  • Prescription and over-the-counter medicine
  • Glasses (reading and/or prescription)
  • Contact lenses and eye care products
  • Dental or orthodontic treatment (not cosmetic)
  • Common medical use items, like bandages, eye/ear drops
  • Immunizations
Check out, the Amazon of FSA! If you have questions about your specific situation, please email

How much should I elect?

For each calendar year, estimate out-of-pocket spending on medical, dental, and vision expenses for you and your dependents. The maximum election during the 2020 calendar year is $2,750. Need help? Check out our election worksheet for guidance. 😎

What happens to unused funds at the end of the year?

Up to $550 can be rolled over to the next calendar year. Amounts over $550 will expire, so elect wisely! You may submit a reimbursement claim until March 31 of the following year for expenses incurred prior to December 31 of the previous year.

How do I use my HCFSA?

Download the Benepass app through the Apple App Store or Google Play Store. You may either:

  • Pay for eligible expenses with your Benepass card (virtual + physical)
  • Submit a reimbursement claim through the Benepass mobile app

Why should I use the HCFSA?

Most of us have some out-of-pocket medical spending. You can immediately save 20-40% (depending on your tax bracket) on essential expenses! The money you set aside for the HCFSA is not taxed. Therefore, you're not paying federal income taxes, state taxes, Social Security tax, Medicare tax... none of the taxes on the amount you elect for your HCFSA. At Benepass, we're all about keeping more of your hard-earned money. 💰

I have other questions.

And we have answers! Email us at and we'll get right back to you.

How is it deducted from my paycheck?

Your election is deducted ratably from each paycheck. For example, if your company is on semi-monthly payroll (e.g. twice a month) and your election is $1,200 for the plan year, each of your paychecks will reflect a $50 deduction. However, your full election is available for spending immediately on your Benepass card on the first day of the plan year.

Do I have to be on my company's health insurance plan to enroll?

You do not need to be enrolled in your company's health insurance plan to enroll in your company's health FSA. If you had an FSA at a previous employer and you change companies mid-year, you can also enroll in your new company's FSA.

What if my spouse has an FSA through their employer?

You and your spouse may have separate FSAs through different employers, and their election does not affect yours. If you anticipate a high level of health care spending, you may each elect the maximum amount available for the plan year.