This is their FSA - flexible spending account- eligible expenses.
Anyone whose employer offers an FSA can have the same coverage. You put part of your paycheck into the account pre-tax every pay period and can submit claims for these expenses. It is use it or lose it - so you have to be careful in estimating your out of pocket expenses for a year. Sometimes its referred to as a cafeteria plan or Section 125 plan - and it is part of those.
Also it does not help with unanticipated expenses. I didn't sign up for the FSA at work and then had $10 co-pays for dozens of physical therapy visits after I broke a bone.
18. This is a Cafeteria Plan for federal workers, NOT HEALTH INSURANCE.
Some private employers choose to offer them, too. They are available to all employers.
The Cafeteria Plan member (the employee) puts pre-tax dollars into an individual account with the plan, and then is allowed reimbursement from his or her account with the plan for health expenses specified by the plan and the Internal Revenue Code, like over-the-counter acne medicine or allergy medicine--think Claritin and Zyrtec.
I worked for a firm with a Cafeteria Plan. They offered health insurance, but didn't pay for it. Instead, employees paid for it through the Cafeteria Plan, which meant that the employees did not pay any taxes on the money they paid for health insurance. For me, it mean that my $450 policy cost me more like $315.
These plans can also be used for child care and maybe elder (parent)care expenses.
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