2025 Benefits Open Enrollment: Flexible Spending Account
On this page:
- What is a Health Care Flexible Spending Account (FSA)?
- Eligibility
- Contribution Limit
- Limited Carryover Provision
- Eligible Health Care Expenses
- Non-eligible Expenses
- Accessing Your Health Care FSA Funds
- Dependent Care FSA
What is a Health Care Flexible Spending Account (FSA)?
The Health Care FSA allows you to set aside tax-free money to be used for certain IRS-eligible medical, dental, or vision expenses not covered by insurance for you, your spouse, and your eligible dependents (children up to age 26, even if they are not covered on your medical plan, are married, or are living away from home). Contributions are elected on an annual basis and cannot be changed during the year unless you experience an IRS-defined qualifying life event.
Eligibility
Benefit-eligible employees (75% FTE or higher) can elect a Health Care FSA if enrolled in the Blue HPN or PPO 80/20 medical plans, or waive coverage. Employees enrolled in the High Deductible Health Plan and not eligible for the Health Savings Account (HSA) are eligible to participate in the Health Care FSA.
Contribution Limit
The FSA annual maximum IRS contribution limit is $3,300 in 2025. Your full annual election amount is available starting January 1, 2025, and enrollment is required each year to participate. To utilize funds from your account, the expenses you claim must be eligible under IRS regulations, incurred during the tax year (January 1 through December 31), and submitted to Navia Benefit Solutions by the following March 31.
Limited Carryover Provision
At the end of 2025, the FSA rollover IRS limit is $660. Any unused Health Care FSA funds up to the IRS limit will carry over to the following plan year. Any remaining funds in excess of the IRS limit are forfeited.
Eligible Health Care Expenses
Examples of eligible expenses:
- Copays, deductibles, and coinsurance
- Prescriptions
- Over-the-counter medicines (e.g., cold or pain meds)
- Menstrual products
- Hearing aids and related expenses
- Dental care and orthodontia
- Acupuncture
- Vision exams, eyewear, or vision surgery
View the full list of eligible expenses.
Non-eligible Expenses
The following are examples of expenses not allowed by IRS regulations:
- HDHP Plan Deductible
- over-the-counter vitamins and supplements
- cosmetic procedures
- exercise equipment (unless accompanied by a medical diagnosis and a prescription)
View the full list of ineligible expenses.
Accessing Your Health Care FSA Funds
Your annual contribution is pre-funded and available beginning January 1, 2025. There are two ways to use the funds in your account. You may:
- Use the Navia Benefits debit card to pay at the time of purchase or service. All Health Care FSA participants automatically receive a Navia Benefit Solutions card—a debit-type Mastercard card that allows you to pay for purchases and services from your Health Care FSA.
- Request Reimbursement for Out-of-Pocket Expenses. You can pay for eligible health care expenses and then submit claims for reimbursement by logging in to naviabenefits.com or by submitting an FSA Claim Form to Navia Benefit Solutions. Both must include supporting documents, such as a receipt for payment from your provider or retailer. To utilize this option, you must first authorize Navia Benefit Solutions to direct deposit your reimbursements by logging on to naviabenefits.com.
Videos:
Dependent Care FSA
The Dependent Care FSA allows you to set aside tax-free money to pay for your dependents’ day care, which allows you and your spouse to work. Contributions are elected on an annual calendar-year basis, and cannot be changed during the year unless you experience an IRS-defined qualifying life event.
The 2025 annual contribution limit is $5,000 per household. Spouses can each elect participation in the Dependent Care FSA, but their combined elections cannot exceed $5,000 ($2,500 each for married employees who file their income taxes separately).
Enrollment is required each year to participate. Participation is not automatic.
To be reimbursed from your account, expenses must be eligible under IRS regulations and incurred between January 1 and December 31, 2025. Claims must be submitted to Navia Benefit Solutions by March 31 of the following year. Daycare services cannot be reimbursed before they are incurred, even when the daycare provider requires payment in advance.
Unused 2025 Dependent Care FSA contributions are forfeited under IRS regulations. They cannot be rolled over beyond the plan year.
Eligibility
Benefit-eligible employees (75% FTE or higher) can elect a Dependent Care FSA.
Eligible Dependents
Daycare expenses must be for one of the following types of dependents to be considered eligible:
- Children: tax dependents under the age of 13
- Spouse: who is physically or mentally unable to care for themselves
- Elders/Adults: tax dependents who are physically or mentally unable to care for themselves
Eligible Expenses
The following are examples of IRS-allowed daycare expenses:
- Nursery school, preschool, or similar programs for children below the level of kindergarten
- Before or after school care of a child in grade K or above
- Summer or overnight camp during working hours (for children under age 13)
- The household employee whose services include the care of a qualifying person
- Application or registration fees, deposits, and fees paid to reserve a spot in a daycare center
View the full list of eligible expenses.
Non-Eligible Expenses
The following are examples of expenses not allowed by IRS regulations:
- Expenses paid for but not yet incurred
- Kindergarten or private school tuition
- Overnight camp during non-working hours
- Summer school or tutoring programs
View the full list of ineligible expenses.
Accessing Your Dependent Care FSA Funds
You fund your account throughout the year through equal pre-tax payroll deductions and can access the funds for reimbursement as they are deposited. There are two ways to use the funds in your account. You may:
- Use the Navia Benefits debit card to pay for eligible expenses. All Dependent Care FSA participants automatically receive a Navia Benefit Solutions card—a debit-type Visa card that allows you to pay for eligible expenses from your Dependent Care FSA.
- Request Reimbursement for out-of-pocket expenses. When you incur an eligible expense, you can pay out of pocket and then submit claims for reimbursement by logging in to naviabenefits.com or submitting an FSA Claim Form to Navia Benefit Solutions. Both must include supporting documents, such as a receipt for payment from your daycare provider. To utilize this option, you must first authorize Navia Benefit Solutions to direct deposit your reimbursements by logging in to naviabenefits.com.
Videos:
Limitations on Changes to an FSA Election
Once you enroll in an FSA, you cannot stop or change your contributions during a plan year unless you have a qualifying event. If a qualifying event occurs, IRS rules generally require that changes to participation and/or contributions during the plan year must be made on account of and consistent with that status change.
Qualifying events include:
- Change in your legal marital status
- Change in the number of your dependents (birth, death, adoption, or placement for adoption)
- Change in employment status for you, your spouse or dependents
- Event that causes your dependent to satisfy or cease to satisfy the requirements for dependent coverage (due to attainment of age or any similar circumstances)
- Change in dependent care provider (Dependent Care FSA only)
