Flexible spending accounts (FSAs)

Funding. You will contribute a predetermined amount to your account during annual enrollment. Your funds will be available for use on the first day of your plan year.

Accessing funds. When you have eligible health care expenses, pay for them with your Optum Financial payment card, or pay out of pocket and request reimbursement online. Remember to always keep your receipts.

Requesting reimbursement and providing proof of purchases. It’s quick and easy to request reimbursement for eligible expenses paid using personal funds or to submit documentation for card purchases. Our documentation upload features online and on the mobile app will save you time and make your life easier.

Please remember that credit card receipts, non-itemized cash register receipts and canceled checks are not acceptable forms of documentation. Always request an itemized receipt or EOB from your health care provider or merchant.

Claims processing. We will promptly process your request and reimburse you either by check or direct deposit, if you sign up for that feature.

Account management. Sign in to your online account or the mobile app to check your account balance, set up your family profile, add a bank account to enable faster reimbursements or request a debit card in a dependent’s name.

Paying with your health care FSA payment card is a convenient way to pay for qualified medical expenses without having to submit paper claim forms. It can be used at health care-related merchants, such as hospitals and vision, dental and doctor’s offices. It can also be used at hundreds of local retailers like Walgreens, Amazon and Optum Store.

The FSA payment card may also be used at childcare providers that accept Mastercard® and have a valid merchant category code signifying they are a childcare provider. The payment card may not be used if you prepay childcare expenses, since the IRS requires the expense must be incurred before reimbursement can be made from your dependent care spending account.

As always, save itemized receipts, bills or statements anytime the payment card is utilized.

The “run-out period” is a specified period of time after the end of the plan year — or following your termination from the plan — in which you may continue to submit claims incurred during your period of coverage.

This is not a period when you can continue to incur new expenses, but rather it allows you time to gather and submit expenses before your funds are forfeited.

For example, if your plan has a 90-day run-out period, you will have 90 days from your date of termination to submit expenses incurred before the termination date.

As with most health plans, you’re likely to have out-of-pocket expenses each year. If you have children and have to pay for childcare, a dependent care account can help stretch your hard-earned dollars.

A general purpose FSA (FSA) can cover medical, prescriptions, hearing, dental or vision expenses that you would otherwise pay for out of pocket. Common qualified expenses that an FSA will usually cover include the deductible, coinsurance or copayment amounts for your health plan, eyeglasses or contact lenses, dental work and orthodontia, medical equipment, hearing aids and chiropractic care.

For a list of eligible expenses, please see IRS Publication 502.

Another great feature is that the funds are front-loaded to the account and are available at the start of your plan year.

A dependent care FSA (DCFSA) covers employment-related expenses for childcare. Qualified expenses must be for services that allow for you to be able to work.

Typical expenses under this account include charges for childcare, nursery school and eldercare (though not if it is for medical care) for your legal tax dependents.

The dependent care FSA is not front-loaded.

You are eligible for this benefit if you have a dependent (whose expenses are eligible) who requires care in order for you to be able to work. You must also meet one of the following eligibility criteria:

• You are not married.
• Your spouse works, is a full-time student, is actively seeking work or is disabled (cannot perform their own self care).
• You are divorced or legally separated and have custody of your child, even though your former spouse may claim the child for income tax purposes. Your dependent care FSA can be used to pay for childcare services that are provided during the times when the child resides with you.

A service or expense must be incurred before it is eligible for reimbursement. An FSA expense is considered “incurred” when the service is performed, not when you pay for the service. The service also must be performed during your participation in the plan. Services or expenses incurred before or after your plan participation dates do not qualify for reimbursement.

In general, money remaining in your FSA at the end of the plan year will be forfeited. This is known as the “use-it-or-lose-it” rule. However, some plans may allow you to submit claims after the end of the plan period for eligible expenses made before the deadline.

In addition, some plans let you continue spending your FSA dollars for a specified grace period or carryover part of your remaining balance. This includes the following:

Limited purpose/General purpose FSA
The carryover limit from the 2024 plan year to the 2025 plan year is $640. Those funds will be available in your account on April 1 and can be used for eligible expenses incurred in 2025.

Dependent care FSA
A “grace period” allows you to carry over your 2024 DCFSA balance to 2025. You can use those funds toward claims incurred between January 1 and March 15, 2025. If funds are not claimed by December 31, 2025, they will be forfeited.