Faculty & Librarians (Union): Health Care Account

Contributions

Contributions to a health care flexible spending account are deducted from an employee’s payroll on a per pay basis.

*Maximum monthly contribution for faculty on a less than annual contract is $412.50 

^The annual IRS maximum is not the same as a household maximum. For example, both Spouse A and Spouse B can elect the annual individual maximum for a household total of the individual maximum times 2. 

Eligible Expenses

• Prescription drug co-payments
• Office visit copayments
• Deductibles and coinsurance for medical and dental plans
• Eyeglasses and contact lenses

For more information, please review this complete listing of eligible expenses. Eligible items can also be purchased online at the FSA Store.

Reimbursement

For information on submitting claims for reimbursement, please see our Flexible Spending Account Reimbursement page.

Important Deadlines

The grace period for submitting health care claims against the health care flexible spending account (FSA) is 6 months. All health care claims incurred from July 1-June 30 must be submitted for reimbursement no later than Dec. 31 following the conclusion of the plan year. For example, health care claims incurred between July 1, 2025 - June 30, 2026, must be submitted to UPMC with supporting documentation by Dec. 31, 2026.

Unused funds will be forfeited if not claimed by the filing deadline.

Health Care Spending Account Carryover

The IRS has modified the "Use It or Lose It" rule for health care flexible spending accounts (FSA) to allow a $660 annual carryover of unused contributions. The carryover does not count against the contribution maximum per year and the carryover may be used to pay for expenses in the year in which it is carried over. This modification only applies to the health care FSA and terminates the 2-1/2 month extension provision previously applied to the account.

Note: Incomplete Participation in Plan Year

Unused Funds

Unused funds will be forfeited if not claimed within six months for terminations of employment from the University and general ineligibility for the health care account, such as loss of eligibility, suspensions, leaves, or cancellation for a family status change mid-year.

Termination of Employment

In case of termination of employment from the University or ineligibility during the plan year due to a change in benefit eligible positions, claims can be submitted for expenses incurred prior to the termination/ineligibility date. Post-employment or post-participation access is available through continuation of the account on an after-tax basis under COBRA. Termination of employment is distinguished from suspension for a leave, family status change, or other employment.

Expenses and services incurred after the termination/ineligibility date are not eligible for reimbursement.

Note: Waiving Account While Remaining Eligible

Waiving the account during Open Enrollment for a July 1 effective date allows for the rollover into the next plan year's account for use during that plan year up to the annual rollover amount.

Potential Savings

Think of a FSA as a budgeting tool. Many people already set aside allowances for living expenses such as food, clothing, and utilities. A FSA allows you to save pre-tax dollars to help ease the burden of medical, dental, and vision expenses that you may incur in the coming plan year. You decide how much you want to put into the account. This amount will be deducted from your pay check on a monthly basis. Pay eligible expenses with tax free dollars, using the convenient Consumer Advantage Debit Card. Example:

You may find it helpful to estimate your out-of-pocket expenses for the coming year by using the Flexible Spending Calculator. The calculator will provide an estimate of your expenses, calculate your potential savings, and suggest an amount for you to contribute for each paycheck. You should take into consideration any known factors that could have an impact on these amounts.