You may contribute up to $2,750 in 2021 to the Health Care FSA. The IRS maintains a list of eligible expenses. Some expenses eligible for reimbursement through a Health Care FSA include:
- Coinsurance not covered by your health plan
- Prescription drugs
- Over-the-counter medications
- Durable medical equipment, such as wheelchairs
- Eyeglasses/Contact lenses
Claims for expenses incurred during the current calendar year must be submitted to WEX/Discovery Benefits no later than April 30 of the following year. Termed employees must submit claims incurred from the beginning of the plan year to their last date of employment no later than 120 days following their term date.
Up to $500 ($550 in 2021) in unused health care FSA contributions will automatically be carried over to the next calendar year and can be applied to eligible expenses in that year. The carryover amount does not require an election amount or any payroll deduction and will be deposited into your health care FSA on May 15 every year. Claims will first be paid from the current plan year’s balance and then deducted from any carryover amounts.