Health Plans
Flexible Spending Account (FSA) Plans
Both the employer and employee can contribute to FSAs.  Until HRAs and HSAs were introduced, FSAs offered employees the only way to supplement their employer-sponsored health plan on a pretax basis.  While HSAs and HRAs have become increasingly popular, FSAs are still a very viable option for employers of every size and are compatible with virtually any health plan.
  • Many employers have used flexible spending accounts to help employees fund higher out-of-pocket expenses after increasing health plan deductibles and co-payments.
  • Employees can use an FSA to pay for a variety of health care expenses not covered by their health plan.  These often include over-the-counter drugs (with a prescription), vision, or dental expenses.
  • FSAs can also be set up to pay for qualified dependent care expenses.
  • Employers can continue to offer an FSA in combination with an HRA and, in a modified form, with an HSA.  Physicians Care can provide further details on these options.

Use It or Lose It Rule

The funds deposited into an FSA cannot be rolled over from year to year but must be used within a plan year.  However, under the Internal Revenue Code, an employer may allow a grace period or a carryover so employees may use unspent funds in the next plan year.

Physicians Care Health Plans (PCHP) has more than 30 years of experience with FSA design and administration. We can coordinate claim submissions to make a Physicians Care health plan an even more attractive benefit to employees.  For more information, call PCHP or send us an e-mail today.