Health Care Flexible Spending Account (HCFSA)

Save on healthcare costs with an HCFSA.

What you need to know

When you enroll in one of the following plans — or if you waive medical coverage — you’re eligible to participate in an HCFSA, administered by Inspira Financial:

  • Highmark PPO 1000 or PPO 1000 HPN
  • Kaiser HMO
  • HMSA PPO

With this account, you can set aside pre-tax money to pay for qualified medical, prescription and over-the-counter drug, dental, and vision expenses.

You’ll save money on these expenses because your contributions are deducted from your pay before federal taxes are withheld.

Who’s eligible

You’re eligible to participate in an HCFSA if you enroll in the Highmark PPO 1000 or PPO 1000 HPN, Kaiser HMO, HMSA PPO, or waive medical coverage. If you enroll in the Highmark CDHP 3750, CDHP 2250 or CDHP 2250 HPN, you can’t contribute to an HCFSA, but you can open a Health Savings Account (HSA).

What the HCFSA can be used for

You can use your HCFSA for most healthcare expenses not covered by your medical plan, like deductibles, copays, coinsurance, and prescription drugs. Expenses can be for you or your family members as long as they’re tax dependents. Click here to see eligible expenses.

Is the HCFSA for you?

Consider contributing to this account if you’re expecting medical, dental, vision, or prescription drug expenses in 2026 to save using pre-tax dollars to pay for these costs. To decide how much to contribute, think about the different types of expenses you expect for you and any covered dependents.

How it works

Contribute to an HCFSA

You can contribute up to $3,300 to your HCFSA in 2026.

The money will be deducted from your paychecks in equal amounts throughout the year before taxes are calculated. You can only make changes to your contribution during the year if you experience a qualifying life event.

What is a qualifying life event? Qualifying life events are determined by the IRS and may allow you to enroll in or change your benefit elections outside of Open Enrollment. Common events include the birth or adoption of a child, marriage, or divorce. You have 30 days to elect any changes related to a qualifying life event.

Note: Coverage and premiums are effective on the original effective date of the event. Any missed premium payroll deductions will appear on your next pay in full as a retroactive deductionRetroactive Premium Deduction: Coverage and premiums are effective on the original effective date of your enrollment event. Once your enrollment or change is approved and finalized, any missed premium payroll deductions dating back to the effective date will appear on your next pay as a retroactive deduction and will be deducted from your check in full..

Pay using your HCFSA debit card

You’ll receive an HCFSA debit card when you enroll. You can use it to pay for eligible healthcare expenses. (You can also pay for expenses out of pocket and and file a claim for reimbursement online.)

Remember to save any itemized receipts or Explanation of Benefits (EOB) statements to verify your claims.

Use funds and submit claims for reimbursement

You can use your HCFSA for eligible expenses incurred Jan. 1–Dec. 31, 2026. If you need to use your funds, you can shop for eligible items at the FSA store. You have until Mar. 31, 2027, to submit claims for reimbursement. For expenses incurred Jan. 1–Dec. 31, 2025, you have until Mar. 31, 2026, to submit claims for reimbursement.

What happens if I don’t use all the money?

You can carry over up to $680 from 2026 into 2027. You forfeit any amount over $680, per IRS rules.

Rules to know

You need to enroll each year.

If you want to participate in an HCFSA, you must set your contribution amount each year. Your elections from the previous year will not carry over.

No double-dipping.

You cannot contribute to the HCFSA if you already contribute to an HSA. If you decide to move from the HCFSA to an HSA for the next plan year, be sure to spend all the money in your HCFSA before the changes take effect. Otherwise, you’ll forfeit the money in your HCFSA.

Keep your receipts.

You may be asked to verify that an expense was eligible. If you can’t provide documentation, you’ll be required to reimburse your account or the amounts in question may be reported as taxable income to you.