Flexible Spending Plans


 Health Care Flexible Spending Account (HCFSA)

This voluntary benefit plan offers eligible employees the ability to pay for eligible out-of-pocket health care expenses with pre-tax dollars for you, your spouse and qualified tax dependents such as medical, dental, vision, hearing, and prescription drugs cost. Your entire annual election will be made available to you on January 1st, for eligible medical services provided in that year. The money you set aside is not subject to federal or social security taxes.

Enrollment Information

  • Enroll by completing Enrollment Form and returning to Human Resources within 30 days of hire or eligibility. The Effective date will be determined by the date the form is submitted to Human Resources within the 30 day period. 
  • Employee may contribute from $260 to $2,550 each plan year to this account.
  • Contributions are deducted from pay before federal, state and Social Security (FICA) taxes.
  • Employee must re-enroll during the annual open enrollment period during the month of September or October to participate during following calendar year. Contributions amount may be changed at that time.
  • Once the plan year has begun, you cannot make changes (increase, decrease, or stop deduction) in your authorization unless there has been a change in your status as defined by the Internal Revenue Services (IRS).  Refer to FSA Program Brochure.

Submitting a Claim Form

File claim for reimbursement by completing Claim Form, attaching documentation and mailing to: New York City Flexible Spending Accounts Program, Bowling Green Station, P.O. Box 707, New York, NY 10274.  Expenses eligible to be reimbursed must be:

  • medically necessary,
  • incurred by an employee, employee’s spouse, or eligible dependents (including domestic partner), and
  • not covered by the employee’s own or another insurance plan.
  • Refer to FSA Program Brochure for a list of reimbursable and non-reimbursable expenses.
  • Any money left in employee’s account after expenses have been paid for the year is forfeited.

More Information

Dependent Care Assistance Program (DeCAP)

The Dependent Care FSA is generally used for reimbursing out-of-pocket childcare expenses for dependents under the age 13. Eligible expenses include daycare, pre-school, or babysitting expenses incurred so that you can attend work, or, if married, you can work and your spouse can work, looking for work or be a full-time student. Dependent Care FSA funds can also be used to pay for elder care expenses for older dependents incapable of self-care. The annual maximum is set at $5,000 per household ($2,500 if married and not filing a joint tax return) and funds are available as they are contributed for services provided in 2016.  IRS Publication 503 - Dependent Care Expenses.

Enrollment Information

  • Complete Enrollment Form and return to Human Resources within 30 days of hire or eligibility. The Effective date will be determined by the date the form is submitted to Human Resources within the 30 day period. 
  • Employee may contribute from $500 to $5,000 each plan year to this account.
  • Deducted from pay before federal, state and Social Security (FICA) taxes.
  • Employee must re-enroll during the annual open enrollment period during the month of September to participate during following calendar year. Contribution amount may be changed at that time.
  • Once the plan year has begun, you cannot make changes (increase, decrease, or stop deduction) in your authorization unless there has been a change in your status as defined by the Internal Revenue Services (IRS).  Refer to FSA Program Brochure

Submitting a Claim Form

  • File claim for reimbursement by completing Claim Form, attaching documentation and mailing to: New York City Flexible Spending Accounts Program, Bowling Green Station, P.O. Box 707, New York, NY 10274
  • For expenses to be eligible:
    • Dependent must be child under 13 for whom employee or spouse is entitled to claim dependent status on income tax return, or spouse who is unable to care for him/herself, or a financially dependent member of employee’s household; and
    • Care must be required in order for employee to be gainfully employed and, if married, spouse also must be employed or actively looking for work.
  • Refer to FSA Program Brochure for additional eligibility rules.
  • Any money left in employee’s account after expenses have been paid for the year is forfeited.

MSC BUY-Out Waiver Program

The MSC Health Benefits Buy-Out Waiver Program allows eligible employees who have non-City group health benefits to waive their New York City health benefits in return for an annual cash incentive payment.  This incentive payment is considered ordinary income and, therefore, is taxable to the recipient.

The annual amount of the incentive payment is:

Plan Year 2016
 

  • $3,000 to employees with family coverage who waive City health benefits
  • $1,500 to employees with individual coverage who waive City health benefits
Plan Year 2017
  • $1,000 to employees with family coverage who waive City health benefits
  • $500 to employees with individual coverage who waive City health benefits
MSC Premium Conversion Program

The MSC Premium Conversion Program allows City employees who have payroll deductions for health insurance premiums and optional riders to increase their take-home pay.  While automatically enrolled on a pre-tax basis, you are able to choose post-tax premium payment if you wish.

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