setting up an fsa

Setting Up an FSA

Flexible Spending Accounts

The easy-to-add financial solution to expand your benefit offerings

FSAs provide convenient, cost-effective financial solutions to basic employee expenses. This virtually cost-free benefit enables employees to set aside pre-tax earnings to pay certain medical expenses, childcare expenses, dental and vision costs. Decreasing their taxable income not only saves employees money, but lowers employer payroll taxes as well.

 

Fully integrated, seamless and convenient

FSAs are fully integrated through our claims processing system, which provides the option of making reimbursement available through automatic reimbursement or by debit card. Employees also have the option of manual claim submission.

FSA options

Our Flexible Spending Account solution offers three types of FSAs that can be paired with any of our health plans:

 

  1. Health Care FSA - employees can pay for eligible health care expenses (as defined by IRS code 213(d)) on a pre-tax basis, cutting costs by reducing their federal income tax, FICA tax and, where applicable, state income taxes.
  2. Dependent Care FSA - employees can pay for dependent child care expenses for children under the age of 13 during working hours. In fact, Dependent Care FSAs may provide more tax advantages than the federal income tax credit.
  3. Limited-Purpose FSA - If you offer a High-Deductible Health Plan with a Health Savings Account (HSA), you may offer enrolled employees a Limited-Purpose FSA to pay eligible vision and dental expenses.

Valuable benefit enhancements

In addition to creating tax savings, FSAs also help employees better plan for and manage health care expenses.

 

Advantages

  • Lower FICA, Federal Income and State Income taxes
  • Cost-effective way to enhance your benefit package
  • Way to offer additional, quality benefits as health care costs rise
  • Easy, confidential administration including:
    • enrollment
    • reporting
    • claims processing
    • reimbursements
  • Access to Web site for claims information, online tools and account management

 

Why you should offer our FSA

While most FSA programs pay for themselves in tax savings, not all FSA administrators offer the spectrum of services needed to successfully maximize all aspects of your health benefits program.

 

BlueCross BlueShield of Tennessee delivers a complete solution with valuable tools and administrative services that drive employee participation and satisfaction.

 

To establish a BlueCross BlueShield of Tennessee Flexible Spending Account, contact your agent/broker or a BlueCross BlueShield of Tennessee representative at 1-800-565-9140.

For more information about Flexible Spending Accounts, go to Group/Broker FSA FAQs .