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Health FSA

Save Money with a Health FSA

Looking for a great way to keep more money in your paycheck? Check out a Health FSA. It reimburses you for eligible expenses that aren't covered by your health, dental, or vision plan - the out-of-pocket health care expenses that you're already paying for.

  • Doctor and dentist co-pays
  • Health plan deductibles and co-insurance
  • Vision exams, contact lenses, and eyeglasses
  • Dental cleanings, X-rays, and orthodontia
  • Chiropractic and acupuncture services
  • Prescription drugs and prescribed over-the-counter medicines
  • Over-the-counter health care-related items

See more examples on our Eligible Health FSA Expenses page.

Health FSA Funds: Available Day 1

Health FSAs are unique. Your annual Health FSA contribution is available on the first day of the FSA plan year. But your total FSA contribution amount is deducted from your paycheck in equal amounts throughout the year.

Let's say your Health FSA election is $1,200 and your plan year begins on January 1. On the first day of the FSA plan year (January 1), you can use $1,200 right away toward eligible Health FSA expenses. Then $100 will be deducted from your paycheck each month throughout the year.

Enrolling Is Easy

Signing up for a Health FSA is simple. An important first step is estimating your upcoming health care-related expenses. Think about the health care expenses for you, your spouse, and your qualifying children or relatives.

You can enroll in an FSA during open enrollment or when you become eligible to enroll. Find out more details on our Health FSA Enrollment page.

You may also be able to sign up if you have a change in status event that is recognized under your plan.

Using Your Health FSA

Knowing about your Health FSA will help you make the best use of your FSA benefits and keep more money in your paycheck. Get familiar with your CONEXIS online account. It's a great way to keep up with your FSA. Provide your email address and you'll receive email claim confirmations and helpful FSA tips throughout the year.

UC offers the CONEXIS Visa® Benefit Card as part of your Health FSA plan. Our benefit card gives you instant access to your Health FSA funds. It automatically deducts funds from your FSA when you use your card to pay for an eligible Health FSA expense. No need to pay out of pocket. No need to submit a reimbursement form. No need to wait on a reimbursement check. Just swipe and go!

Health FSA Carryover

The UC Health FSA plan allows you to carry over up to $500 of unused Health FSA funds from one plan year to the next. This means after the claim submission deadline of April 15, unused funds (up to $500) will be carried over to the following plan year and will be available for reimbursement in early May.

This feature offers these advantages:

  • Less risk, less worry - There's less "use-it-or-lose-it" risk, so there's no reason not to enroll - or re-enroll - in a health FSA. The carryover feature is great for everyone!
    • FSA Rookies - If you've never had a Health FSA before, try it out. You can put at least $500 in your account, and if you don't use it during the plan year, you can carry it over to the next year.
    • FSA Veterans - You know the power of a Health FSA and its tax-savings potential. With the carryover feature, you no longer have to precisely predict your out-of-pocket expenses down to the penny when you make an election. There's no reason not to re-enroll again.
    • FSA Skeptics - Perhaps you've had a Health FSA before and lost money at the end of the plan year. Give it another chance since the carryover feature is part of the Health FSA. Why not save money on eligible health care expenses you're already paying for out of your pocket?
  • More Flexibility - You decide how and when to spend your Health FSA funds. You can tap into your Health FSA to pay for eligible expenses as they arise, rather than trying to spend it down at the end of the plan year or run-out period.
  • More Savings - A Health FSA delivers real savings since money is withdrawn from your paycheck before taxes are taken out, and those funds are deposited into your Health FSA. This reduces your overall tax burden as you use pre-tax dollars to pay for doctor visits, prescription drugs, contact lenses, and other eligible expenses. And since you can carry over $500 remaining in your account from one plan year to the next, there's no reason not to take advantage of this savings opportunity year after year.

With a carryover, you do not have to rush to spend all of your health FSA funds or worry about losing money when the plan year ends. As long as you are an active employee and eligible to participate in the UC Health FSA plan, you may carry over the maximum amount allowed by the plan - that's $500. If you plan to re-enroll for the following year, there is no minimum carryover balance required and you can spend your carryover dollars until the account funds are gone. However, if you do not re-enroll in the health FSA, you must have at least $25 from the prior plan year in your account at the end of the run-out period (April 15 of the next plan year) to be able to carry over funds to the next plan year. Funds under $25 are forfeited. You may only carry over funds for one plan year.

Please note: IRS rules do not allow a Health FSA to have both a carryover feature and grace period. The grace period only applies to the DepCare FSA, which does not include the carryover feature (per IRS rules).

Use It or Lose It

Even though the Health FSA has a carryover and there is less risk of losing money, keep in mind that your Health FSA contributions are still subject to the IRS "use-it-or-lose-it" rule. When the run-out period expires, you will forfeit any unused funds that remain in your Health FSA after the $500 carryover is deducted. The unused funds may not be paid to you in cash or other benefits, including transferring money between FSAs.

Learn more about Health FSA rules on our Health FSA Guidelines page.