Flexible Spending Account (FSA)

An FSA uses pre-tax dollars – deducted from your paycheck, pre-tax – to reimburse eligible expenses.  Because FSAs are funded with pre-tax money, you save on State, Federal and FICA (Social Security) taxes.  There are two accounts you can enroll in – the Healthcare FSA and the Dependent Daycare FSA. 

Healthcare FSA – use this account to pay for eligible medical, dental and vision expenses for you and your eligible dependents.  Examples of eligible expenses include co-pays/deductibles, braces, eyeglasses, prescriptions and over-the-counter (OTC) medicines.  As part of the CARES Act of 2020, OTC medicines are now eligible for reimbursement and no longer require a prescription or letter of medical necessity form.

• Maximum Healthcare FSA election amount: $3,300
• Healthcare FSA debit card – debit cards are automatically re-loaded with your new plan year balance. Cards are valid for three years from the date of issue, and a new card is automatically mailed to you before your card expires. You can order cards for your spouse/dependents for free by logging into your account on the P&A Group: State of Maryland website .  You can also request a card through our mobile app by going to “Benefits Card” under the main menu.

Dependent Daycare FSA – use this account to pay for eligible dependent daycare expenses for your child(ren), like after-school programs, summer day camps and elder daycare for an elderly parent or dependent.  Your child must be under age 13 or be physically or mentally incapable of self-care.

• Maximum Dependent Daycare FSA election amount:  $7,500