Flexible Spending Accounts (FSAFEDS)

FSAFEDS allows you to save money for health care expenses with a Health Care or Limited Expense Health Care Flexible Spending Account (FSA). Think of it as a savings account that helps you pay for items that typically aren’t covered by your Federal Employees Health Benefits (FEHB) Plan, the Federal Employees Dental and Vision Insurance Program or other health insurance coverage.

FSAFEDS also offers an account for families with young children or elder care expenses – the Dependent Care FSA. This account allows you to set aside money to pay for your day care expenses. The minimum election for all accounts is just $100 and carryover has been adopted for health care and limited expense health care FSAs. Visit FSAFEDS to enroll.

Health Care FSAs can help you cover medical costs not usually covered or reimbursed by FEHB carriers or any other insurance. These costs may include:

  • FEHB Deductibles
  • Co-Payments/Co-Insurance
  • Dental/Vision Services
  • Over-the-Counter Products
  • $2,750 in 2020

Please note that insurance premiums including FEHB premiums, Long Term Care, Medicare Part B, and Tricare are NOT covered. In addition, over-the counter products that are medicines or drugs (e.g. acne treatments, allergy, and cold medicines) are NOT eligible for reimbursement through a HealthCare FSA unless the enrollee has a prescription for that item. Items that are not medicines or drugs (bandages, nasal strips, etc.) will not require a prescription.

Dependent Care FSAs can be used to cover child or adult dependent care expenses. Children are covered up to age 13 and adults will qualify if they are considered dependent under IRS rules.

Dependent Care FSAs will cover the following:

  • Day camp
  • Nursery school
  • Babysitting
  • Housekeeper whose duties include childcare
  • Before-school and after-school care
  • Up to $5,000 per year
    • $2,500.00 per year if you are married and file a separate tax return
    • $5,000.00 per year if you are married and you and your spouse are both eligible to contribute to a Dependent Care FSA through your respective employers and file a joint tax return or if you file as single or head of household

This type of account is only for employees in FEHB High Deductible Health Plans with a Health Savings Account (HSA)

  • Expenses are limited to dental and vision care services or products such as cleanings, fillings, crowns, orthodontics, contact lenses, eyeglasses, refractions, and vision correction procedures. Cosmetic services are not eligible expenses.
  • Maximum contributions:
    • $2,750 per covered employee

Enrollment after the FSAFEDS Open Season and enrollment in a FEHB High Deductible Health Plan

  • HSA account must have funds in it
  • FEHB high deductible health plan will notify enrollees that they are eligible to enroll in a Limited Expense (LEX) HCFSA
  • Enrollees will have 30 days after being notified by their FEHB plan to establish their LEX HCFSA by calling a special phone number
  • Effective the day after enrollment – it will not become effective January 1 as with the Health Care and Dependent Care FSAs

Health Care & Dependent Care Enrollment:

New election is needed each year during annual Federal Benefits Open Season. Once a bi-weekly contribution amount is elected, it cannot be stopped or changed during that calendar year unless a qualifying life event occurs. If you have experienced a qualified life event and would like to request a decrease in your election amount, complete and submit the Qualifying Life Event Form.

Employees can enroll at:

Online at: FSAFEDS
Toll-free: 1-877-FSA-FEDS (372-3337)
Toll-free TTY: 1-866-353-8058

  • FSA allotment terminates when you leave the federal government
  • Your remaining account balance is not refundable
  • Health Care FSA – only expenses occurring prior to date of separation are reimbursable
  • Dependent Care FSA – only expenses occurring during the calendar year of separation are reimbursable

Source URL: https://www.cbp.gov/employee-resources/benefits/fsafeds