Flexible Spending Accounts, also called Reimbursement Accounts, are a means for employees to pay for certain out-of-pocket health care or dependent care costs on a pre-tax basis.
A Health Care Spending Account (HCSA) is used to pay for almost any genuine medical expense not covered by a group plan. Here is a list of things that may be covered:
A Dependent Care Spending Account (DCSA) is used to pay for those costs of dependent care that enable the employee to work. This care may be for a child under the age of 13 or a an adult dependent who is incapable of self care, such as an invalid parent.
For either of these Spending Accounts, the employee sets aside a predetermined amount through regular pre-tax salary reductions. The employee is reimbursed for all expenses up to the amount he or she has deposited (or in the case of HCSA, to the amount he or she has elected to deposit).
WageWorks administers Scott County's Flexible Spending Accounts. For detailed information about WageWorks and how Flexible Spending works, check out their web site at http://www.wageworks.com or call Human Resources.
Planning is the key: unused amounts are forfeited "use it or lose it".
To continue to pay your medical/family premiums with pre-tax dollars, you do not need to do anything.