Eligibility

Who's eligible: Employees with Full, Mid-Level and Core benefits

Who’s covered: You and your family members

Who pays: You

You set aside money for your flexible spending account (FSA) from your paycheck before taxes are taken out. The Health FSA is intended for eligible health care expenses for you and your eligible family members.

WEX Health is the administrator for the FSA plans.

2023 contribution limits and rules

You may contribute between $180 and $2,850 annually. If both you and your spouse are UC employees, you may each contribute up to $2,850. If you have a carryover from a previous year, it does not count against the $2,850 maximum contribution.

Health FSA participants can carry over $570 from the 2022 plan year to the 2023 plan year, and $610 from the 2023 plan year to the 2024 plan year. You must be active in the plan on December 31 to carry over funds to the following year. Balances less than $25 will be forfeited for those who are not continuing enrollment into the following year. 

  • You must enroll annually, usually during a period of eligibility or during Open Enrollment, to participate. 
  • You specify an amount to be taken from your paycheck each month and deposited in your Health FSA.
  • Use the debit card issued by WEX Health to pay for eligible expenses. In many cases, you won't be required to submit additional documentation to substantiate the expense.
  • If you pay eligible expenses out of pocket, submit a claim form and appropriate documentation of these expenses to WEX Health. WEX Health will then reimburse you from the funds in the appropriate account. Generally, you must submit claims by April 15 of the following year to receive reimbursement. 
  • Because the FSA contributions are deducted from your paycheck before taxes are withheld, your taxable income is reduced, and you save money on taxes. Your savings will depend on your particular tax situation.
  • Generally, FSA contributions cannot be changed during the year unless you experience a qualifying event. The IRS defines qualifying events and allowed changes. 
UC's Limited Purpose Flexible Spending Account (LPFSA) is available to you if you meet all of the following criteria:
  • Are eligible for the Faculty/Staff Benefits program
  • Participated in the Health FSA during a plan year and end the year with a carry-over balance greater than $25 
  • Enroll in the UC Health Savings Plan for the following plan year

If you are eligible, the LPFSA account will be created for you automatically and the balance of your Health FSA that is eligible for carry-over (up to $570) will be placed in the LPFSA. The following rules apply:

  • Contributions are limited to the Health FSA balance; you may not contribute additional funds
  • Generally, eligible expenses are restricted to dental, vision and preventive care services
  • Participation is limited to one year
  • You may not re-enroll in the LPFSA for a subsequent plan year
  • Any balance remaining in the LPFSA at the end of the run-out period for the plan year is forfeited