Plan Year 2025 FSA Question and Answer Sheet
This chart will give you basic information on the Health Care Flexible Spending Account (HCFSA) Program, Dependent Care Assistance
Program (DeCAP) and the Medical Spending Conversion (MSC) Health Benefits Buy-Out Waiver Program. If you would like to receive
detailed information and enrollment forms, or if you would like to send an e-mail to the Flexible Spending Accounts (FSA) Program,
please visit our website. If you would like to make an appointment to see a counselor, please contact the FSA Program Administra-
tive Office.
Feature HCFSA DeCAP MSC
What is the HCFSA is a way to pay for eligible DeCAP is a way to pay for expenses MSC allows City employees to
program medical expenses (not covered by to care for your child(ren) or other receive an annual incentive payment
about? insurance), dental, vision, and hear- dependents, with pre-tax dollars, in exchange for waiving their City
ing expenses (not covered by your while you and your spouse work or health benefits when other non-City
Welfare Fund) with pre-tax dollars. attend school full-time. group coverage is available to them.
When and how Each year, the Open Enrollment Pe- Same as HCFSA. Same as HCFSA except employees
can I enroll? riod for the following calendar year must complete the Health Benefits
will generally be held from Septem- Application to waive City health
ber to November. New employees benefits and the MSC Enrollment/
may enroll within 30 days after be- Change Form to receive the incen-
coming eligible to receive City health tive payments. Annual re-enroll-
benefits. Employees must re-enroll ment is not necessary for continuing
by completing the FSA Enrollment participation in the program.
Form on an annual basis.
How can I ben- You plan for anticipated expenses Same as HCFSA. Employees waiving family health
efit by joining but also reduce your gross salary for coverage will receive $1,000 annu-
the program? federal and Social Security tax pur- ally and employees waiving indi-
poses. The end result is that your vidual health coverage will receive
expenses are lower and you save on $500 annually. Payments are made
taxes. semi-annually in June and December
and are taxable to the recipient. No
retroactive participation is allowed.
How do the 1. Estimate your pre-tax contribu- Same as HCFSA. Once you have completed both
programs tion to your account for the Plan the MSC Form and Health Benefits
work? Year. Application, you must submit both
2. Your account is funded through forms to your benefits office for
automatic payroll deductions. approval. Your benefits office will
3. Claims received by the 15th
forward the forms to the FSA office.
of each month are processed
accordingly. Reimbursements
for approved claims that are
generated in the current month
will be paid by the end of the
month.
How do I get After all claims for the month are Same as HCFSA. You will receive the incentive pay-
Reimbursed? processed and approved, your will ments on a semi-annual basis in
receive your reimbursement in the your regular paycheck.
way below:
• Reimbursements are directly
deposited into your bank ac-
count.
What is the There is a Claims Run-Out Period There is no Grace Period. N/A
Grace Period? from January 1st until May 31st fol-
lowing the end of the Plan Year to
submit claims for services incurred
during the previous Plan Year or
Grace Period.
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Feature HCFSA DeCAP MSC
What is the There is a Claims Run-Out Period There is a Claims Run-Out Period N/A
Claims Run- from January 1st until May 31st fol- until the end of February following
Out Period? lowing the end of the Plan Year to the close of the Plan Year to submit
submit claims for services incurred claims for services incurred during
during the previous Plan Year or the previous Plan Year.
Grace Period.
What is the According to IRS rules, amounts not Amounts not used by the end of the N/A
“Use It or Lose used by the end of the HCFSA Grace Claims Run-Out will be forfeited.
It” rule? Period will be forfeited.
Who can be You, your spouse, and your eligible Eligible dependents are child(ren) Any employee who is eligible to
covered or dependents. under age 13 and any dependent receive City health benefits may
who is eligible? who is mentally or physically inca- participate. Employees may waive
pable of caring for himself/herself their health benefits if they are
and spends at least half of the year insured through a spouse’s/domestic
in your home. partner’s or parent(s)’ employer-
provided, non-City group health
plan or a group health plan available
through other employment.
What types Medical, dental, vision & hearing Baby-sitting, nursery school, pre- N/A
of expenses expenses, including deductibles, co- school, summer day camp, before-
are covered & insurance, over-the-counter drugs and after-school care, childcare cen-
reimbursable? prescribed by a doctor, physicals, ters that provide day care and other
psychologist’s fees, braces, prescrip- dependent care that is necessary
tion drugs, prescription eyeglasses, for you and your spouse to work or
frames, contact lenses, among other attend school full-time.
out-of-pocket eligible health care
expenses.
What is the Medical care means expenses N/A N/A
definition of incurred to diagnose, cure, mitigate,
medical care? treat or prevent disease or to affect
any structure or function of the
body.
How much can The minimum annual contribution is The minimum annual contribution N/A
I put aside in $260 and the maximum annual is $500 and the maximum annual
my spending contribution is $3,300. contribution is $5,000.
accounts?
How do I sub- Forms and documents can be sub- Same HCFSA Same HCFSA
mit my form mitted electronically to:
electronically? https://nyc-fsa.leapfile.net
The Open Enrollment Period is September 23, 2024 through November 8, 2024.
New York City
Flexible Spending Accounts Program
Bowling Green Station
P.O. Box 707
New York, NY 10274
212-306-7789
nyc.gov/fsa
Pretax/FSA/PLYR2024/FSA/2025_FSA_QA_Sht.indd Page 2 of 2
