Health Plan Improvements

7. Medical Flexible Spending Account (FSA) Limit Increased to $5,000

Effective July 1, 2009 the maximum amount an employee can contribute to a medical flexible spending account will increase from $3,000 to $5,000.

A flexible spending account allows you to save on your taxes while paying for certain medical expenses, including co-pays, deductibles, and coinsurance, prescriptions expenses, dental expenses, vision expenses, and etc.

When you enroll in an FSA, you choose an amount to be deducted from each paycheck and placed into your account. The payroll deduction is taken from your pay before federal and state income taxes are calculated and deducted, which means you actually reduce the amount of taxes you pay.  You can then use the pre-tax funded account to pay for medical expenses.

For more details regarding Flexible Spending Accounts, please visit http://www.ohio.edu/hr/benefits/healthcare/fsa.cfm

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