Open Enrollment: Flexible Spending Account

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What is a Health Care Flexible Spending Account (FSA)?

The Health Care FSA allows you to set aside tax-free money to be used for certain IRS-eligible medical, dental, or vision expenses not covered by insurance for you, your spouse, and your eligible dependents (children up to age 26, even if they are not covered on your medical plan, are married, or are living away from home).

Contributions are elected on an annual basis and cannot be changed during the year unless you experience an IRS-defined qualifying life event.

Eligibility

Benefit-eligible employees (75% FTE or higher) can elect a Health Care FSA if enrolled in the Blue HPN or PPO 80/20 medical plans, or if they waive medical coverage. Employees enrolled in the High Deductible Health Plan who are not eligible for the Health Savings Account (HSA) are also eligible to participate in the Health Care FSA.

Contribution Limit

The projected annual maximum IRS contribution limit for the Health Care FSA is $3,500 in 2027.

Your full annual election amount is available beginning January 1, 2027. Enrollment is required each year to participate.

To use funds from your account, expenses must be eligible under IRS regulations, incurred during the tax year (January 1 through December 31, 2027), and submitted to Navia Benefit Solutions by March 31, 2028.

Limited Carryover Provision

At the end of 2027, the Health Care FSA carryover limit is $700. Any unused Health Care FSA funds up to the IRS limit will carry over to the following plan year. Any remaining funds exceeding the IRS limit will be forfeited.

Eligible Health Care Expenses

Examples of eligible expenses include:

  • Copays, deductibles, and coinsurance
  • Prescriptions
  • Over-the-counter medicines, such as cold or pain medications
  • Menstrual products
  • Hearing aids and related expenses
  • Dental care and orthodontia
  • Acupuncture
  • Vision exams, eyewear, or vision surgery

View the full list of eligible expenses.

Non-eligible Expenses

Examples of expenses not allowed by IRS regulations include:

  • High Deductible Health Plan (HDHP) deductible
  • Over-the-counter vitamins and supplements
  • Cosmetic procedures
  • Exercise equipment, unless accompanied by a medical diagnosis and a prescription

View the full list of ineligible expenses.

Accessing Your Health Care FSA Funds

Your annual contribution is prefunded and available beginning January 1, 2027. There are two ways to use the funds in your account:

  • Use the Navia Benefits debit card. All Health Care FSA participants automatically receive a Navia Benefit Solutions card, a debit-type Mastercard that allows you to pay for eligible purchases and services directly from your Health Care FSA.
  • Request reimbursement for out-of-pocket expenses. You can pay for eligible health care expenses and then submit claims for reimbursement by logging in to naviabenefits.com or submitting an FSA Claim Form to Navia Benefit Solutions. Claims must include supporting documentation, such as a receipt from your provider or retailer. To receive reimbursement by direct deposit, you must first authorize Navia Benefit Solutions to deposit reimbursements into your account by logging in to naviabenefits.com.

Health Care FSA Videos

Dependent Care FSA

The Dependent Care FSA allows you to set aside tax-free money to pay for your dependents' day care, which allows you and your spouse to work. Contributions are elected on an annual calendar-year basis and cannot be changed during the year unless you experience an IRS-defined qualifying life event.

The 2027 annual contribution limit is $7,500 per household. Spouses can each elect participation in the Dependent Care FSA, but their combined elections cannot exceed $7,500 ($3,750 each for married employees who file their income taxes separately).

Enrollment is required each year to participate. Participation is not automatic.

To be reimbursed from your account, expenses must be eligible under IRS regulations and incurred between January 1 and December 31, 2027. Claims must be submitted to Navia Benefit Solutions by March 31, 2028.

Day care services cannot be reimbursed before they are incurred, even when the day care provider requires payment in advance.

Unused 2027 Dependent Care FSA contributions are forfeited under IRS regulations. They cannot be carried over to the following plan year.

Eligibility

Benefit-eligible employees (75% FTE or higher) can elect a Dependent Care FSA.

Eligible Dependents

Day care expenses must be for one of the following types of dependents to be considered eligible:

  • Children: Tax dependents under age 13
  • Spouse: A spouse who is physically or mentally unable to care for themselves
  • Elders/Adults: Tax dependents who are physically or mentally unable to care for themselves

Eligible Expenses

Examples of IRS-allowed day care expenses include:

  • Nursery school, preschool, or similar programs for children below the kindergarten level
  • Before- or after-school care for a child in kindergarten or above
  • Summer or overnight camp during working hours for children under age 13
  • Household employees whose services include the care of a qualifying person
  • Application or registration fees, deposits, and fees paid to reserve a spot in a day care center

View the full list of eligible expenses.

Non-eligible Expenses

Examples of expenses not allowed by IRS regulations include:

  • Expenses paid for but not yet incurred
  • Kindergarten or private school tuition
  • Overnight camp during nonworking hours
  • Summer school or tutoring programs

View the full list of ineligible expenses.

Accessing Your Dependent Care FSA Funds

You fund your account throughout the year through equal pre-tax payroll deductions and can access funds for reimbursement as they are deposited. There are two ways to use the funds in your account:

  • Use the Navia Benefits debit card. All Dependent Care FSA participants automatically receive a Navia Benefit Solutions card, a debit-type Visa card that allows you to pay for eligible expenses from your Dependent Care FSA.
  • Request reimbursement for out-of-pocket expenses. When you incur an eligible expense, you can pay out of pocket and then submit claims for reimbursement by logging in to naviabenefits.com or submitting an FSA Claim Form to Navia Benefit Solutions. Claims must include supporting documentation, such as a receipt from your day care provider. To receive reimbursement by direct deposit, you must first authorize Navia Benefit Solutions to deposit reimbursements into your account by logging in to naviabenefits.com.

Dependent Care FSA Videos

Limitations on Changes to an FSA Election

Once you enroll in an FSA, you cannot stop or change your contributions during a plan year unless you experience a qualifying event. If a qualifying event occurs, IRS rules generally require that changes to participation and/or contributions during the plan year must be made on account of and consistent with that status change.

Qualifying events include:

  • Change in your legal marital status
  • Change in the number of your dependents, including birth, death, adoption, or placement for adoption
  • Change in employment status for you, your spouse, or your dependents
  • An event that causes your dependent to satisfy or cease to satisfy the requirements for dependent coverage, such as reaching a certain age or similar circumstances
  • Change in dependent care provider (Dependent Care FSA only)