Highmark Flex Spending Account: A Comprehensive Guide

Highmark offers a flexible spending account (FSA) that allows you to set aside pre-tax dollars for eligible medical expenses.

You can use the funds in your FSA to pay for qualified expenses, such as copays, prescriptions, and medical equipment.

The maximum annual contribution to a Highmark FSA is $2,850, which can help you save money on your taxes and pay for necessary expenses.

To be eligible for a Highmark FSA, you must be enrolled in a Highmark health plan.

A different take: Do You Have to Pay Taxes on Grants for Business

An FSA, or Flexible Spending Account, is an employee benefit option offered during open enrollment. Employees decide how much they want to contribute to their FSA for the year.

The contributions occur via payroll deduction and cannot change until the next plan year, unless there is a qualifying event, such as a birth or adoption. The total amount of expected annual FSA contributions is available on day one of the plan year.

The 2024 limit for health care FSA contributions is $3,200, and dependent care FSAs max out at $5,000. Some plans may allow money to carry over or give you extra time to submit expenses, so it's best to check with your employer about the details of your FSA.

FSAs are a great way to save money on medical and dependent care costs, but how do they work?

Money in any FSA needs to be used in your current plan year or you will lose those funds. Some plans may allow money to carry over or give you extra time to submit expenses.

Here's a breakdown of the contribution limits for FSAs:

You can start using your FSA funds right away, even if you haven't made the full annual contribution. Most FSAs provide employees with a debit card for purchases under the plan.

You can use a Flexible Spending Account (FSA) to save money on care for your loved ones, such as children, spouses, or relatives who need assistance with daily activities.

FSAs come in different types, including Health Care, Limited Purpose, and Dependent Care. The Dependent Care FSA is specifically designed to help with the costs of caring for children under 13 or elderly family members.

The annual contribution limit for a Dependent Care FSA is $5,000 for single or married filing jointly, and $2,500 if married filing separately. This is higher than the limit for Health Care and Limited Purpose FSAs, which is $3,050 for individuals or families.

FSA funds need to be used within the current plan year or they will be lost. Some plans may allow for a 2.5-month grace period into the following year or a maximum rollover of $640 into the next plan year.

Here are the annual contribution limits for different types of FSAs:

Employers can offer a grace period or rollover option to their employees, but it's not mandatory. If you have an FSA, make sure to check with your employer about the details of your plan.

With a Highmark Flex Spending Account, you can save money on care for the people who depend on you the most.

You can use a Dependent Care FSA to help pay for things like licensed daycare, custodial care for dependent adults, and summer day camps.

This type of FSA is perfect for families with young children or for those who care for elderly relatives at home.

You can use the funds in a Dependent Care FSA to pay for expenses like babysitting fees, after-school programs, and even some home modification costs.

By using a Dependent Care FSA, you can reduce your taxable income and lower your overall healthcare costs.

Dependent Care FSAs can be a huge help for families on a tight budget, allowing you to save money on childcare and other dependent care expenses.

Readers also liked: Gold Ira Storage at Home

You can use your Highmark FSA to save money on care for your loved ones, like your children, spouse, or relatives who need help with daily tasks.

Dependent care FSAs can be used for expenses like licensed daycare, custodial care for dependent adults, and summer day camps.

You can also use your FSA for in-home care during working hours, and preschool and summer camp costs are eligible expenses.

Health care FSAs have a limit of $3,050 for individuals or families, and limited purpose FSAs have the same limit. Dependent care FSAs have a higher limit of $5,000 for single or married filing jointly, and $2,500 if married filing separately.

Here's a quick summary of the limits:

Money in your FSA usually needs to be used in the current plan year, but some plans may allow money to carry over or give you extra time to submit expenses. Check with your employer for the details of your FSA.

For another approach, see: Credit Karma Money Spend Account Tax Return

Flexible Spending Accounts (FSAs) are offered by your employer to help you pay for qualified medical and dependent care expenses.

The money you put into your FSA is taken out of your paycheck before taxes, reducing your taxable income. This can be a big advantage, especially if you have high medical or childcare expenses.

FSAs are a convenient way to save money for expenses that might be difficult to budget for otherwise, like medical copays or after-school program fees.

You can use your FSA to pay for a wide range of qualified expenses, from doctor visits to eyeglasses to daycare costs.

If this caught your attention, see: Credit Karma Money Spend Account Turbotax

Maximizing FSA dollars is crucial to get the most out of your Flexible Spending Account. You can use the funds for qualified expenses like licensed daycare, custodial care for dependent adults, and summer day camps. The amount you can contribute to a Dependent Care FSA is $5,000 for single or married filing jointly, and $2,500 if married filing separately.

Some employers may offer a rollover option or a grace period to help you use up your FSA funds. According to the EBRI, 42% of employers with FSAs offer a rollover option, while 26% offer a grace period. However, 33% of employers do not offer an FSA rollover or grace period.

Readers also liked: Can I Use My Flex Spending Account for Gym Membership

To help you make the most of your FSA, employers can direct you to the FSA Store for eligible products. The store offers 2,500 products for online purchase with available FSA funds. This can be a great resource for spending money that would otherwise go unused at the end of the plan year.

Here's a breakdown of FSA contribution limits:

Keep in mind that FSA funds do not typically roll over from year to year. However, some employers may offer a 2.5-month grace period into the following year. This year, some employers may also choose to give a maximum rollover of $640 into plan year 2025.

Integrating spending accounts with your employee benefits plan can be a seamless process. Highmark's dedicated spending account operations team handles customer needs from implementation and onboarding to maintenance and issue resolution.

Employers can view data, load contributions, access reports, and reconcile accounts all in one place. This integration can be implemented in about 30 days.

There is a misconception that employees don't want spending accounts or that they are too complicated and hard to administer. Highmark has invested in making these benefits easy to use.

Employees can be automatically enrolled in an HSA or HRA if the employer chooses. FSAs and commuter accounts require employees to elect the account during open enrollment.

An employee's HSA may be closed if there is no activity within 90 days.

FSAs are evolving to meet the changing needs of employees. Employers can now offer Commuter Spending Accounts, in addition to HSAs, FSAs, and HRAs, to help pay for public transit and parking with pre-tax money.

Commuter accounts are gaining popularity as employees return to in-person work. They can help lower taxable income and offer more flexibility to employees.

The newest offering on the market is the Lifestyle Spending Account (LSA). LSAs can help pay for a wide range of expenses, from home office costs to gym memberships and travel.

If this caught your attention, see: Can I Pay My Wife's Medical Bills with My Hsa

Employers can choose how to use LSAs, giving employees even more personalized benefits choices. This flexibility is a major advantage of FSAs.

Today's workers want more from their employers, and FSAs are helping to fulfill that demand. By offering a range of spending accounts, employers can attract and retain top talent.

You can use a Dependent Care FSA to save money on care for your children, spouse, or relatives who are unable to care for themselves and live with you.

These funds can be used for licensed daycare, custodial care for dependent adults, summer day camps, and child or adult day care during working hours.

Preschool and summer camp costs are also eligible under a Dependent Care FSA, making it a great option for families with young children.

Limited Purpose FSAs (LPFSA) are also available, allowing you to use your funds specifically for dental and vision expenses, rather than dipping into your Health Savings Account (HSA).

See what others are reading: Flex Spending Account Use It or Lose It

Limited Purpose FSAs, or LPFSAs, are a type of FSA that's specifically designed for dental and vision expenses. They're an add-on for high-deductible health plans with a health savings account (HSA) for medical costs.

LPFSAs allow you to set aside pre-tax dollars for dental and vision expenses, which can help reduce your out-of-pocket costs. This can be a huge relief, especially if you have a big dental bill coming up.

By using an LPFSA, you can keep your HSA funds intact for long-term savings. This means you can maximize the benefits of your HSA while still covering your dental and vision expenses.

Highmark, a well-known health insurance company, offers LPFSAs as part of their high-deductible health plans. They're a registered mark of Highmark Inc., and are available to eligible employees.

LPFSAs are funded with pre-tax employee payroll dollars, which means the employer doesn't pay Medicare or Social Security taxes on those contributions. This can be a win-win for both the employee and the employer.

Readers also liked: Healthcare Marketplace Vision Insurance

A Dependent Care FSA can help alleviate the worries and costs of caring for children (under age 13) or elderly family members. These funds can be used for child or adult day care and in-home care during working hours.

You can use a Dependent Care FSA to help pay for things like licensed daycare, custodial care for dependent adults, and summer day camps. Some examples of qualified expenses include preschool and summer camp costs.

The contribution limit for a Dependent Care FSA is $5,000 for single or married filing jointly, and $2,500 if married filing separately. You can use this FSA to help pay for expenses for the people who depend on you the most.

Money in a Dependent Care FSA usually needs to be used in your current plan year or you will lose those funds. Some plans may allow money to carry over or give you extra time to submit expenses, so be sure to check with your employer about the details of your FSA.

Here are some key details about Dependent Care FSAs at a glance:

The Weight Management Reimbursement program is a great perk for those looking to take control of their health. Participating colleagues can verify their eligibility to ensure they meet the program's requirements.

You can manage your account online, where you can review your claim history and benefit information. This is especially helpful when you need to keep track of your expenses or check on the status of a claim.

To find a participating provider, you can use the online tool to locate one in your area. This way, you can ensure that you're getting the most out of your program by using a provider that's part of the network.

If you need to print any documents, such as an ID card or claim forms, you can do so from the online portal. This is a convenient feature that saves you time and hassle.

Discover more: Bcbs Claim Getting Wrong Diagnosis Code Invalid