A Medical Flexible Spending Arrangement (FSA) is only offered to PEBB benefits-eligible employees who work at state agencies, higher-education institutions and community and technical colleges.
How a Medical FSA can help
A Medical FSA allows you to set aside money from each paycheck—before taxes—to pay for out-of-pocket health expenses.
- The Medical FSA helps you pay for deductibles, copays, coinsurance, dental, vision, and many other out-of-pocket expenses. (See list of eligible expenses.)
- The Medical FSA lets you set aside a portion of your pay, so it reduces your annual taxable income.
- The full amount you set aside for your calendar Medical FSA contribution is available on the first day of the plan year for expenses.
- You can use your Medical FSA for you, your spouse or your qualified tax dependent's health care expenses, even if they are not enrolled in your PEBB medical or dental plan.
Enrolling in a Medical FSA
You can set up a Medical FSA:
When you become eligible for PEBB benefits. You must enroll no later than 31 days after the date you become eligible for PEBB benefits.
No later than the last day of PEBB’s annual open enrollment period (November 1-30).
Note: Medical FSA participation is only valid for the plan year in which you enroll and does not continue automatically. For each new plan year, you must enroll or reenroll to participate in a Medical FSA before the end of the PEBB annual open enrollment period.
During the plan year if you or an eligible family member has a qualifying event that creates a special open enrollment
. You must enroll no later than 60 days
after the event that created the special open enrollment.
To determine how much you want to contribute per pay period, estimate your expenses for the plan year and enroll in a Medical FSA for that amount. The money deducted from your pay is divided by the number of paychecks you will receive in the plan year. The minimum annual amount is $240, and the maximum annual amount is $2,500.
Using your Medical FSA
When you incur a qualifying expense, you can submit a claim via a mobile app, online, or send a claim form by toll-free fax, mail, or email to request reimbursement. You also can sign up for a debit card.
Spending down your Medical FSA – Grace period to “use it or lose it”
If you have not spent all of the funds in your Medical FSA by December 31, you may continue to incur eligible health care expenses through the grace period. The Medical FSA grace period ends March 15 of the following year. You must submit all claims for your Medical FSA to Flex-Plan Services for reimbursement no later than March 31 after the end of the plan year. Money left in your account after that date cannot be refunded and will be forfeited to the Health Care Authority. This is referred to as the “use-it or lose-it” rule.