Flexible Spending Account (FSA)
This content in this section provides an introduction to FSAs and covers the basics of this type of account.
Is an FSA right for you?
Frequently Asked Questions
- Can I change the amount of money I set aside in my medical FSA during the plan year?
- Yes. However, you must have a qualifying life change in order to change your election mid-year. Be sure to check with your employer or benefits administrator for additional requirements.
- Can I use my medical FSA to pay for my spouse’s deductibles, copayments, or other out-of-pocket medical expenses?
- Yes. Your medical FSA can be used to cover eligible expenses incurred by you, your spouse, and your dependents .
- What expenses can be paid from a medical FSA?
- Any out-of-pocket and unreimbursed medical expenses allowed under section 213(d) of the Internal Revenue Code, including medical premiums (under limited circumstances) and long-term care expenses.
For a detailed listing, see Eligible Expenses.
- If I have both an HSA and an FSA, which account pays first?
- Blue Cross and Blue Shield of Vermont will always attempt to pay your expenses from the FSA first as this is a “use it or lose it” type of account. However, medical expenses can’t be paid from the FSA during the HDHP deductible so the FSA will be bypassed in this circumstance. To make your FSA work with HSA requirements, your employer should provide a special FSA plan for you instead of a general purpose FSA. A limited purpose FSA is a special FSA that can’t be used for medical expenses but can be used for vision and dental expenses. A post-deductible FSA can pay vision and dental expenses immediately and can also pay medical expenses once the deductible has been satisfied. If the FSA is limited to vision and dental, it can pay for these claims first. However, keep in mind they’re also eligible expenses under the HSA.