Health Care Flexible Spending Account (FSA)

What you need to know

Flexible Spending Accounts give you a tax-advantaged way to pay for the current year’s health care expenses using a debit card. Contributing is easy, and reimbursements are quick and convenient.

The Health Care FSA saves you money because you can pay for eligible health care expenses for you and your eligible dependents with pretax dollars. Your FSA contributions also reduce your taxable income, as they are deducted from your paycheck before federal, state, local, and Social Security taxes are withheld.

You can use the Health Care FSA to help pay for:

Doctor visits and prescriptions
Dental care, like fillings and braces
Vision care, like glasses and contacts

Even if you are not enrolled in a BAE Systems medical plan, you are still eligible for the Health Care FSA.

Limited Purpose Flexible Spending Account (FSA)

If you are enrolled in HSA Standard or HSA Select, you can have a Limited Purpose FSA to help you pay for dental and vision services. You may want to consider a Limited Purpose FSA to pay for dental and vision expenses in order to preserve your HSA funds for just medical expenses, or to save for retirement.

Use the following table to determine which FSA you are eligible for:

	Limited Purpose FSA	Health Care FSA
Which medical plan does it pair with?	HSA Standard HSA Select	Network Choice Copay Kaiser CO* In certain circumstances, this general purpose FSA may be available to HSA Standard and HSA Select participants Enrollment in a BAE Systems medical plan is not required
Who owns the account?	BAE Systems	BAE Systems
Who is eligible to contribute?	Any employee enrolled in HSA Standard or HSA Select and who is eligible to contribute to an HSA	Any employee enrolled in Network Choice, Copay or Kaiser CO* Special note: HSA plan participants who are not eligible to contribute to an HSA are eligible for this FSA
Does BAE Systems contribute to the account?	No	No
What can I use it for?	Eligible dental and vision expenses only	Deductibles, coinsurance, and copays under your medical, prescription, dental, and vision benefit
Is the account portable?	No. Any unused funds are forfeited at the end of the plan year or when you terminate employment at BAE Systems.	No. Any unused funds are forfeited at the end of the plan year or when you terminate employment at BAE Systems.
When are funds deposited into my account?	Your annual contribution amount is available in your account on January 1 of each year or on your benefits effective date, whichever is later	Your annual contribution amount is available in your account on January 1 of each year or on your benefits effective date, whichever is later
Can I change my contribution amounts?	Generally, contributions are elected during Annual Enrollment or when making initial benefit elections. You may only make election changes if you have a qualified status change event during the plan year, like getting married or having a baby.	Generally, contributions are elected during Annual Enrollment or when making initial benefit elections. You may only make election changes if you have a qualified status change event during the plan year, like getting married or having a baby.

* You may also enroll in the general purpose Health Care FSA if you are enrolled in Kaiser Hawaii or HMSA.

Enrolling

To participate in an FSA, you must submit your contribution elections when you enroll in your benefits each year. When setting your FSA contribution amount, consider how much you’ll need to cover your eligible out-of-pocket expenses during the year.

Understanding the costs you’ll incur each year is important, since any funds you save in an FSA must be used in that year or be forfeited. Your FSA contributions also reduce your taxable income, as they are deducted from your paycheck before federal, state, local, and Social Security taxes are withheld.

Using your FSA

When you have a health care expense, you can either pay with the Smart-Choice debit card or pay out of pocket and then submit a claim for reimbursement.

You must use all the money in your account before the end of the calendar year, or you will forfeit it. You must use your FSA funds by December 31, but you have until April 30 of the following year to submit your receipts. For example, 2024 expenses must be submitted by April 30, 2025.

Manage your account online through Smart-Choice Accounts, a website you access through BenefitsNavigator that lets you check your balance, submit a claim for reimbursement, check claim reimbursement status, etc., online at any time.