Flexible Spending Accounts

A Flexible Spending Account (FSA) is an employer-sponsored, tax-advantaged account that allows employees to set aside pre-tax funds from their paychecks to pay for qualified out-of-pocket medical, dental, vision, or dependent care expenses. Because contributions are deducted before taxes, they reduce taxable income.

There are two types of Flexible Spending Accounts: Health Care Flexible Spending Account (Health Care FSA) and Dependent Care Flexible Spending Account (Dependent Care FSA):

Health Care Flexible Spending Account (Health Care FSA)

A Health Care FSA allows you to set aside up to $3,400 of pre-tax dollars (2026 limit) through payroll deduction to help pay for out of pocket medical expenses. These expenses may include co-pays, deductibles, glasses, orthodontics, etc., in which a portion of or all of the expense is not covered by insurance. Up to $680 in unspent Health Care FSA funds will roll over at the end of 2026 and will be available to use in 2027. Any balance over $680 at the end of 2026 will be forfeited. Plan Year 2026 participants do not need to elect a Health Care FSA in 2027 to preserve these rollover funds; however, please note the rules concerning employment termination (shown below), as those may apply.

The Manatee YourChoice Health Care FSA Plan does not have a "grace period" for spending the account funds after the plan year (calendar year) has ended. Some plans offer this option, which gives participants a few extra months in the subsequent year to spend the previous year's balance that would not otherwise be rolled over. Instead, the Plan allows for a 90-day "run out" period, which gives participants until March 31st to file claims, but only for expenses incurred (purchased or services received) by December 31st of the previous year.

How Does a Health Care Flexible Spending Account (Health Care FSA) Work?

You can elect to participate in a Health Care FSA when you enroll in your insurance benefits. Normally, this occurs as a new hire, during the Annual Enrollment period in the fall, or when certain major qualifying life events occur.

Special notice about FSA plans: Unlike other benefit plans, such as medical insurance, which may automatically roll over to the next calendar year, the FSA must be re-selected each year in the Annual Enrollment period. If you currently have the FSA and fail to choose it during the next Annual Enrollment, you will not have the FSA next year. In this case, only your rollover funds (if available) will be eligible for spending next year. 

At the beginning of the year (or on your benefits-effective date, if enrolling as a new hire), your Health Care FSA is funded with your entire annual pledged amount and is available for immediate spending. Any rollover funds unspent from the previous year will also be available to you. You can spend your funds on Health Care FSA-qualified expenses (see below) by using your Inspira Health Care Debit Card, or by filing a claim either by paper or through your online Inspira FSA app. The amount you pledged for the year will be divided by the number of yearly paychecks and automatically deducted from your paycheck, on a pre-tax basis. 

Is There a Documentation Requirement for Spending and Filing Claims?

Typically, no - especially when using your Inspira Health Care FSA Debit Card to purchase the item or service. Note that Inspira, the company servicing our FSA plans, will occasionally require the upload or submission of documentation to verify eligibility of expenses, so be sure to keep all receipts/statements - just in case! Failure to provide any requested documentation may require you to pay back the expenses to Inspira and may also result in a suspension of your spending privileges.

What Are Eligible Expenses for the Health Care FSA?

Typical items include doctor-visit and prescription co-pays, amounts in excess of those covered by insurance plans, routine eye exams, prescription glasses/contact lenses, hearing aids, and certain over-the-counter (OTC) items and medications available for retail purchase.

For a complete, searchable listing of all eligible expenses, please click the following link: Let's Explore What Your Health Care FSA Covers (Inspira).

Additionally, some pharmacy and grocery stores may mark the shelf price tags of Health Care FSA-eligible items with special notations. Look for phrases like "FSA Eligible" when you shop. Also, some stores will clearly mark FSA-eligible items with a code on the purchase receipt. 

Dependent Care Flexible Spending Account (Dependent Care FSA)

A Dependent Care Spending Account allows you to set aside up to $7,500 of pre-tax dollars per household, or up to $3,750 (2026 limits) if you are married and filing separately, through payroll deduction to help pay for eligible dependent child-daycare or disabled-care expenses. Please note: These funds are "use it or lose it." Any unused funds at the end of the calendar year will be forfeited. This plan does not allow any unused amounts to roll over to the next calendar year.

Special notice about FSA plans: Unlike other benefit plans, such as medical insurance, which may automatically roll over to the next calendar year, the FSA must be re-selected each year in the Annual Enrollment period. If you currently have the FSA and fail to choose it during the next Annual Enrollment, you will not have the FSA next year. In this case, only your rollover funds (if available) will be eligible for spending next year. 

• Your child(ren) under age 13, whom you claim as a dependent for tax purposes; or
• A spouse and dependents of any age (who normally spend at least eight hours in your home each day, if the services are rendered outside the home) and are mentally or physically disabled.

For questions about your Inspira FSA plans, or to request a replacement Inspira Health Care FSA Debit Card, please contact Inspira at 1-888-678-8242.