Health Care Flexible Spending Accounts

Flexible Spending Accounts (FSAs) are a benefit offered by most employers that allow an employee the opportunity to put some of his/her salary aside before taxes to pay for many common out-of-pocket expenses. OPM sponsors The Federal Flexible Spending Account Program, also known as FSAFEDS on behalf of all Executive branch agencies, as well as other agencies that wish to offer this benefit to their employees. Just about all Federal employees can elect to participate in one or both Flexible Spending Accounts. (Note: some agencies, such as the U.S.Postal Service and the Federal Judiciary, offer their own FSA program for their employees. The benefits of an FSA are the same, but eligibility and other program rules may be slightly different.)

FSAFEDS offers two types of FSAs: a health care flexible spending account (HCFSA) and a dependent care flexible spending account (DCFSA). The DCFSA is described elsewhere on this website.

You can use a Health Care Flexible Spending Account (HCFSA) to pay for eligible health care expenses not covered by the Federal Employees Health Benefits Program (FEHB) or any other insurance. An HCFSA covers eligible health care expenses* including over-the-counter medications for you, your spouse, and your dependents. You may elect up to $5,000 each year.

That $5,000 limit is in addition to any amount your spouse may have in a separate HCFSA, even if your spouse’s account is part of the FSAFEDS program. It is not a household limit.