Flexible Spending Arrangements (FSAs)

Set aside pretax money from your paycheck to pay for out-of-pocket health care costs.

FSAs are available to employees who work at a state agency and higher-education institution (including community and technical colleges).

Two types of FSAs

The PEBB Program offers:

An FSA
A Limited Purpose FSA.

Listen to the Fund Your Future DRS podcast episode: Save on health care costs with FSA and DCAP to learn more about FSAs.

FSA

The FSA covers a wide range of health care costs. See eligible expenses.

Use your FSA to pay for expenses for you, your spouse, or your qualified tax dependents, even if they are not enrolled in your PEBB coverage.

Limited Purpose FSA

The Limited Purpose FSA covers only dental and vision expenses. See eligible expenses. It is intended for employees enrolled in a consumer-directed health plan (CDHP) with a health savings account (HSA).

Use your Limited Purpose FSA to pay for dental and vision services for you, your spouse, or your qualified tax dependents, even if they are not enrolled in your PEBB coverage.

Important information about FSAs

You cannot have both an FSA and a Limited Purpose FSA, nor can you have an FSA and be enrolled in a consumer-directed health plan (CDHP) with a health savings account (HSA).

If you enroll in both an FSA and a CDHP with an HSA in the same year, you will be automatically disenrolled from the FSA.
If you have a CDHP with an HSA you can enroll in a Limited Purpose FSA for eligible dental and vision expenses.

Contributions and carryover

Contributions

2025 contributions: A minimum of $120, up to a maximum of $3,200.

Note: You cannot change your contribution amount or cancel your FSA or Limited Purpose FSA after the year starts unless a qualifying event creates a special open enrollment. Common qualifying events include birth, adoption, marriage, or divorce.

Why is the IRS maximum contribution limit different from what HCA adopts?

The maximum contribution limit is set by the IRS, and the amount is usually announced in late fall after HCA's annual open enrollment begins. Due to the timing of the IRS announcement, HCA adopts the increased maximum contribution limit for the following plan year.

Carryover

If you have not spent all the funds in your FSA by December 31, and you are still employed and didn't lose eligibility for the FSA, you may be able to take advantage of the carryover feature. Certain unspent funds may "carry over" into the following year without affecting annual maximums.

To carry over your unspent funds:

You must enroll in either the FSA or Limited Purpose FSA for the following year, or
Have at lease $120 left in your account balance.

2026 carryover

Unused funds up to $660 will carry over to 2026. Due to IRS rules, any funds above $660 will be forfeited to HCA.

How do I enroll?

You must enroll in an FSA for each year you want to participate. Enrollment does not automatically continue year to year. If you want to enroll, make sure to choose this benefit again during each open enrollment. You may be automatically enrolled in an FSA if you are a represented PEBB subscriber and meet other criteria.

Note: University of Washington and Washington State University employees use Workday to enroll.

During open enrollment

Visit the Navia Benefit Solutions website. Or, download and print the Open Enrollment Form on Navia's website. Open enrollment is the only time you can enroll online.

When you're first eligible for benefits

Submit the Midyear Enrollment Form to your payroll or benefits office no later than 31 days after the date you become eligible for PEBB benefits.

If you have a special open enrollment event

Submit the Change in Status Form to your payroll or benefits office no later than 60 days after you or an eligible family member has a qualifying event that creates a special open enrollment.

Transferring to another agency or higher-education institution?

You can continue your FSA election if the time between employment is 30 days or less and within the current plan year.

Submit the PEBB Agency Transfer form to your new employer's payroll or benefits office no later than 31 days after your first day of work. If you end employment or retire during the year, submit the PEBB Medical FSA Termination form to your payroll or benefits office.

How do I submit claims?

Visit Navia Benefit Solutions to submit claims.

When you incur an eligible expense, you can submit a claim to request reimbursement. You also can sign up for a debit card.

You can start submitting claims for eligible expenses on or after the first day of your plan year, January 1. The full amount you set aside for your FSA contribution is available on January 1.

Deadlines

You must incur all expenses by December 31, and submit all claims to Navia Benefit Solutions for reimbursement by March 31 the following year. If you are no longer employed or have retired and still have money left in your account, you can still submit claims for reimbursement until March 31, as long as the services took place while you were employed.

$250 FSA contribution for represented employees

If you are a represented employee, you might be eligible to receive a $250 FSA contribution through your collective bargaining agreement.

Criteria

You are likely to receive this contribution if you meet all the following criteria:

You are employed in a PEBB benefits-eligible position on January 1.
You are a union-represented employee.
Your union is part of the Health Care Coalition, described in RCW 41.80.020(3).
Your rate of pay on November 1 of the previous year is $60,000 or less for a full-time equivalent position. If you work part time, you may still qualify for the contribution if your position would provide a salary of $60,000 or less as full-time. For example, if you earn $30,000 and work 20 hours per week, your full-time salary would be $60,000 and you would still qualify.
You or your spouse or state-registered domestic partner are not enrolled in a consumer-directed health plan (CDHP) with a health savings account (HSA).
You met the other eligibility criteria as described in the Health Care Coalition Agreement, including PEBB Program eligibility requirements and eligible medical plan enrollment.

If you believe you qualify for this benefit and have not received it, contact your payroll or benefits office.

About this benefit

This benefit will not come out of your paycheck.
It does not count against your annual maximum contribution.
If you are eligible for this benefit and already have an FSA, your funds will be added to your existing account. If you do not have an FSA, you will be enrolled and send a Navia Benefits Debit MasterCard loaded with $250. The debit card is sent in an unmarked envelope for your security.

What happens to my funds when coverage ends?

When your PEBB insurance coverage ends, or you go on unpaid leave that is not approved under the Family and Medical Leave Act (FMLA) or military leave, you are no longer eligible to contribute to your FSA. Eligibility ends on the last day of the month you lose coverage or go on leave that is not FMLA or military leave.

You will be able to claim expenses that were incurred only while you were employed, unless you are eligible to continue your FSA under PEBB Continuation Coverage. You must submit claims for reimbursement by March 31 the following year.