RCUH offers eligible employees (regular-status, 50% FTE or more) the opportunity to enroll in a Flexible Spending Account (FSA) Healthcare for eligible healthcare expenses for you and your covered dependents.
An FSA is an employer-sponsored employee benefit program that allows employees to set aside pre-taxed dollars to pay for eligible expenses on a reimbursement basis. Contributions will be deducted from the employee’s paycheck and deposited into their National Benefit Services (NBS) Account. Amounts contributed are not subject to federal income tax, Social Security tax, or Medicare tax. Employees access the funds from their NBS Account to reimburse themselves for eligible expenses they paid for out-of-pocket. FSAs are a “Use It or Lose It” qualified benefit in accordance with the IRS code. Any unused funds at the end of the plan year (June 30th) will be forfeited (no carryovers allowed).
IMPORTANT: FSAs may not be advantageous for everyone. Healthcare-related expenses paid for with an FSA cannot be claimed on an annual income tax return. Consult your tax advisor to see how this works with or affects your taxes and help you decide if this option could be beneficial for your situation. RCUH will not provide any tax advice
Please note RCUH’s FSA is not an HSA/LFSA/HRA. RCUH also does not participate in Island Flex.
Our FSA is administered by the National Benefit Services (NBS).
The FSA Healthcare can be used for to pay for (predictable and foreseeable) eligible out-of-pocket healthcare-related expenses for you, your spouse, and your tax dependents (including children under the age of 26).
The IRS determines eligibility of “qualified medical expenses” – must be for the primary purpose of diagnosing, treating, curing, mitigating, or preventing a medical condition. Allowable expenses include copayments, coinsurance, deductibles, qualified prescription drugs, insulin, and medical devices. Certain medical products and services require a “letter of medical necessity” or LMN in order to be eligible.
Cosmetic expenses, things for general health (like gym memberships and multivitamins that are not for a medical condition), and insurance premium payments are not eligible.
Be sure to take the time to research what is and is not eligible.
See The Complete FSA (Healthcare) Eligibility List, IRS FAQ about medical expenses, and Learn About Letter of Medical Necessity.
Did You Know? The IRS determines eligibility of expenses, who is considered an eligible dependent, and the maximum annual contribution limits.
Helpful Tip! The IRS does not allow funds to be transferred between the FSA Healthcare and the FSA Dependent Care accounts, so make sure you enroll into the correct account. If you enroll, contributions are committed for the entire plan year and no cancellations will be allowed. Any unused funds at the end of the plan year (June 30th) will be forfeited.
