Health Benefits Unit

Flexible Spending Accounts

Health Care FSAs

You may set aside a minimum of $300 or up to $2,500 this year for health care expenses. This account can be used to pay for expenses such as medical and dental plan deductibles, co-payments and other health care costs that are not covered by your medical, dental or vision plans. Most health care expenses – but not all – that are considered tax deductible by the IRS are also eligible for reimbursement under a Health Care FSA (for more information see IRS Publication 502 - link opens new window). However, costs associated with cosmetic surgery and premiums for medical and dental insurance are not eligible expenses under the Health Care FSA. In order to be eligible for reimbursement from your FSA, health care expenses must be incurred on your behalf, for your spouse, or for an eligible dependent as defined by the IRS.

The Health Care FSA will reimburse you for eligible expenses incurred in 2004 after the effective date of your enrollment, up to the annual contribution amount you elect, whether or not that amount has been set aside from your paycheck. However, if you leave LACCD employment, calendar year 2004 claims incurred after your termination date may not be submitted for reimbursement, even if amounts set aside from your pay remain unused, unless you elect COBRA continuation coverage on an after-tax basis for your Health Care FSA. A claim is incurred when the relevant services are provided and payment is made. A participant may still submit claims for services provided prior to termination of employment up to 90 days after such termination.