You do not need to be enrolled in the medical plan to take advantage of the FSA! Many of us here at Central Peninsula Hospital have used a Flexible Spending Account (FSA) as a way to save money on healthcare expenses. Since we offer the Health Reimbursement Arrangement (HRA) to the Redoubt Plan, you may be thinking you don’t need to put money into a FSA. However, the July $500 HRA contributions may not be sufficient to cover all of your expenses and the FSA allows you to set aside more pre-tax money.
With an FSA, you can set aside money from your paycheck before the government takes out taxes (usually 30% or more) to pay for healthcare and dependent child care expenses. You pay less in taxes and your money buys more! While you should only set aside enough money for those expenses you know you will incur during the plan year, the roll-over provision allows you to carry forward up to $500 into the next plan year for your healthcare FSA. Due to a change in IRS regulations, your healthcare FSA can now be used for menstrual products and over-the-counter medications without a prescription.
In 2020, employees can set aside up to $2,750 in pre-tax money for eligible health care expenses and up to $5,000 for dependent care expenses.
To learn more about signing up for a Flexible Spending Account:
Dont' Forget - If you want to particiapte in the FSA you must re-enroll every year!
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