Ask HRConnect

When it comes to your employee benefits, you deserve the best information to make the best decisions. Our experts at HRConnect make it their business to help employees understand the benefits programs Yale New Haven Health offers.

Flexible Spending Accounts (FSAs)

Looking for ways to save money? Consider setting up a Flexible Spending Account (FSA), which helps you set aside money to cover eligible expenses during the year. You contribute pretax income through payroll deduction so you’re paying no taxes on your contributions —plus, your contributions reduce your taxable income.

YNHHS offers employees* two types: a Healthcare FSA and a Dependent Care FSA. You can participate in either if you are scheduled to work at least 24 hours per week.

You can use your Healthcare FSA to pay for eligible expenses, including:

• Copays and coinsurance
• Prescription and over-the-counter medications 
• Medical equipment, like crutches, and supplies, such as bandages
• Vision care, like eyeglasses and contact lenses
• Dental expenses, such as fillings and braces

The list of eligible items is extensive – with hundreds of products and services – but it isn’t exhaustive, so it’s best to check the IRS website: www.irs.gov, or at www.hsabank.com. You may submit eligible expenses for dependents if they are considered your dependents for IRS purposes.

Similarly, with a Dependent Care FSA, you set aside pre-tax dollars to cover out-of-pocket dependent care expenses, including preschool, summer day camp, before- and after-school programs, and child and adult day care.

To be eligible for the Dependent Care FSA, your dependent must be:

• Under age 13
• A disabled qualifying relative
• A spouse unable to work or care for themselves
• An adult child unable to work or care for themselves

Enrollment and contribution levels

Enrollment in the FSAs happens once a year, during Open Enrollment for YNHHS Benefits, which is Oct. 28 – Nov. 8. You’ll elect the amount you want to contribute to your FSA for the following calendar year. (There are maximums for both.) With a Healthcare FSA, if you don’t use all of your allocated dollars, you can roll over a predetermined amount to the next calendar year. Anything more is forfeited at the end of the current year.

With a Dependent Care FSA, you must use your allocated dollars by the end of the calendar year. You have until March 31 of the following year to submit receipts for reimbursement.

An important reminder

You need to enroll in the FSAs every year during Open Enrollment. Please visit www.ynhhs-benefits.org for details.

*Employees at L+M, Westerly and VNA who are enrolled in the High Deductible Health Plan are offered a Limited Purpose FSA (LPFSA). The LPFSA is for dental and vision eligible expenses only.