Flexible Spending Accounts (FSAs) are an important accessory to your benefits. FSAs allow you to use pre-tax dollars to pay for certain health care or dependent care expenses during the year. NMG offers three types of FSAs administered by Inspira Financial.
Inspira Financial offers you online tools to help you make the most of your FSA benefits. The Inspira Mobile™ app makes it easy for you to manage your account from any smartphone while you’re on-the-go. You can also simply submit claims using the Financial Center feature on the app or online at inspirafinancial.com. If you choose to participate in the Health Care FSA, you will receive a MasterCard® Debit card in the mail to pay for eligible expenses at point of service.
Using Your FSA Health Care MasterCard® Debit Card
Your Health Care FSA MasterCard® Debit card can be used to pay for all eligible medical, prescription drug, dental and vision expenses directly from your Health Care FSA.
With an FSA, you lose any unused money at the end of the year, so it's important that you carefully estimate your anticipated eligible expenses for the coming year.
Type of FSA
- The Health Care FSA (Bronze and Bronze Plus participants are not eligible) helps pay for eligible expenses such as medical, dental and vision expenses that are not reimbursed by any insurance plan and are not itemized on your IRS tax return. It can also cover copays, coinsurance, and certain over-the-counter products. You will elect a before-tax contribution amount based on a full calendar year up to the 2025 IRS maximum contribution of $3,300. However, due to the shortened plan year, you will only receive the contributions that were made from August 1 through December 31.
- The Limited Purpose Health Care FSA (Bronze and Bronze Plus participants are eligible) helps pay for eligible dental and vision expenses only. You will elect a before-tax contribution amount based on a full calendar year up to the 2025 IRS maximum contribution of $3,300. However, due to the shortened plan year, you will only receive the contributions that were made from August 1 through December 31.
- The Dependent Care FSA helps pay for the care of a child under age 13 or elderly dependents while you and your spouse (if married) are working. Eligible expenses include day care centers, summer day camps, nanny services, and elder care facilities. You will elect a before-tax contribution amount based on a full calendar year up to the 2025 IRS maximum contribution of $5,000 (or $2,500 if you are married and filing taxes separately). However, due to the shortened plan year, you will only receive the contributions made that were from August 1 through December 31.
Limited Purpose Health Care FSA
If you enroll in the Bronze or Bronze Plus coverage level, you can use an HSA, a Health Care FSA, or both an HSA and Health Care FSA. If you contribute to an:
- HSA or Health Care FSA, you can use your account to pay for qualified medical, dental, and vision expenses.
- HSA and Health Care FSA, your Health Care FSA will be “limited purpose” and can only be used to pay for qualified dental and vision expenses. Your HSA can be used for qualified medical, dental, and vision expenses.
If you enroll in the Silver or Gold coverage level, you can use the Health Care FSA to pay for qualified medical, dental, and vision expenses.
Dependent Care FSA
A Dependent Care FSA may be used to reimburse yourself for qualified child and dependent care expenses. You may use this account without being enrolled in medical coverage.
You will elect a before-tax contribution amount based on a full calendar year up to the 2025 IRS maximum contribution of $5,000 (or $2,500 if you are married and filing taxes separately). However, due to the shortened plan year, you will only receive the contributions that were made from August 1 through December 31. Once you set your annual contribution when you enroll, you cannot change that amount during the year (except in the case of certain qualified life events).
And, with the Dependent Care FSA, you lose any unused money at the end of the year, so it's important that you carefully estimate your anticipated eligible expenses for the coming year.
Note: Your Dependent Care FSA annual contribution may be reduced by Plan or IRS limitations.
Things to Consider
When deciding whether to enroll in FSAs, be sure to consider the following:
Tax savings
Do you have moderate to high health care or dependent care expenses? If so, an FSA could help reduce how much you pay in taxes.
Your expected expenses
Carefully estimate your anticipated eligible expenses for the coming year. You should only set aside FSA dollars you know you will be able to use on eligible expenses.