FSAFEDS Is for Anyone Who Likes to Save Money

FSAFEDS is the flexible spending account (FSA) program for Federal employees. It allows you to save money for health care and dependent care expenses. Think of it as a savings account that helps you pay for items that typically aren’t covered by your BCBS Service Benefit Plan, the Federal Employees Dental and Vision Insurance Program, or other health insurance coverage. Copayments, prescriptions, and dental and vision expenses are items you likely have to pay for “out of pocket,” and FSAFEDS helps you pay for those expenses. FSAFEDS gives you a tax advantage on the funds you contribute to your account. You make contributions to your FSAFEDS account via payroll deductions, and that money is NEVER taxed, so you pay less in taxes – which means more money in your pocket!

How Do I Save Money?
The money you contribute to your FSAFEDS account is set aside before taxes are deducted so, in most cases, you save about 30% in federal taxes. The average tax savings for a person who earns $50,000 a year and contributes $2,000 into an FSA account is approximately $600 annually. That equates to $2,000 worth of health care purchasing power PLUS a $600 savings in federal taxes.

How Easy Is FSAFEDS?
It’s very easy – anyone can do it! Enrolling, submitting claims, and getting reimbursed are simple and straightforward, and you can keep track of your account online 24/7 – whenever it’s convenient for you. In addition, BCBS and FSAFEDS have partnered to offer a paperless, or “automatic,” claim option called Paperless Reimbursement. In most cases, you’ll have no paperwork to fill out. BCBS and FSAFEDS take care of it all! You pay the copayment for a prescription, and BCBS sends FSAFEDS a claim for your “out-of-pocket” cost electronically. FSAFEDS processes the claim and sends your reimbursement directly to your bank account. It doesn’t get much easier than that!

How Do I Get Started?
First, you estimate what your medical expenses will be in 2012. Think of all the doctor, dentist, and eye care provider office visits you and your family have throughout the year. A comprehensive list of eligible expenses is available at www.FSAFEDS.com. Check out the list today – you’ll be surprised at what items are included! Choose as little as $250 or as much as $5,000.

Once you’ve determined the amount, enroll online during Open Season at www.FSAFEDS.com. The online enrollment takes about 5 minutes to complete. If you prefer, call FSAFEDS toll-free at 1-877-FSAFEDS (1-877-372-3337). Don’t forget to sign up for Paperless Reimbursement with BCBS!

FSAFEDS also offers another exciting feature for families with young children – the Dependent Care FSA. This account allows you to set aside money to pay for your daycare expenses.

Important note: If you are a current FSAFEDS participant, you MUST re-enroll to participate in 2012. FSAFEDS enrollment does not carry over year to year.

This article is provided by FSAFEDS and is for informational purposes only. It is not a benefit under the BCBS Service Benefit Plan nor is it an endorsement of FSAFEDS and the services it offers.

Page last updated: January 03, 2012