Flexible Spending Accounts

Overview

Novant Health offers two tax-advantaged accounts through Wex and encourages you to take full advantage of the money-saving potential they offer. You can enroll as a new hire, during open enrollment or if you have a qualifying life event.

Tax-free money

Money goes in tax-free* and comes out tax-free when it’s used for eligible expenses.

Convenient payroll deductions

Contribute to your accounts easily and effortlessly.

Helpful budgeting tool

Plan for upcoming expenses by setting aside money each paycheck.

2024 tax-advantaged accounts

The IRS determines what expenses can be paid with money from an HRA or FSA. Learn more about the eligible expenses for each account:

Here’s an example. Let’s say Tom decides to set aside $2,000 in an HSA or FSA for the year. Normally, on that money, he’d pay $480 in federal income tax, $100 in state income tax, and $153 in payroll tax. So, by contributing that $2,000 to his HSA or FSA, he’ll save $733 in taxes for the year.

Without an HSA or FSA, Tom would pay …	Savings
24% in federal income tax………………………………………………………..	$480
5% in state income tax*………………………………………………………….	$100
7.65% in payroll tax…………………………………………………………..…….	$153
His total tax savings for the year with an HSA or FSA …………...	$733

This hypothetical is for educational purposes only. Dollar amounts or savings will vary depending on income, state and city tax rules, and other factors. Please consult a tax, legal, or financial advisor about your own personal situation.

*HSA contributions are not subject to federal income tax, but are currently subject to state income tax in CA and NJ. Consult with your tax advisor to understand the potential tax implications of enrolling in an HSA and/or FSA.

Health Reimbursement Account

With the Cigna Premium and Standard plans, you will receive a Health Reimbursement Account (HRA), administered by Cigna, to help cover the costs of your health care.

HRA features

Well-being pays off. Team members earn money into their HRA through participation in Novant Health well-being programs.
Works like a bank account. You can use HRA dollars for your eligible health care expenses. Cigna will automatically check your HRA balance to pay for claims before you ever receive a bill from your providers office. Use your HRA debit card to spend the money on:
- Prescription drugs
- And more
Automatically applied to your claims. Money in your HRA is automatically applied to your out-of-pocket expenses associated with your medical plan. Please note that HRA cannot be used toward dental and vision expenses.
Unused money carries over at the end of each year. You cannot take the money with you if you leave the company.
Can be paired with a Health Care FSA. You can set aside your own pre-tax money in an FSA to help cover health expenses that exceed your HRA amount.

Health Care Flexible Spending Account

Using a Flexible Spending Account (FSA) for health care expenses is like getting a discount because you’re paying with tax-free money.

The Health Care FSA is available to team memberss who enroll in the Cigna Premium Plan, Cigna Standard Plan, or Surest Plan, or do not elect medical coverage. This account can be used for all eligible medical, dental, and vision expenses.

With this account, you can contribute up to $3,050 for the year through pre-tax payroll deductions. Note: You must enroll in the Health Care FSA each Open Enrollment if you want to contribute the next year, even if you already have an account.

How the Health Care FSA works

Dependent Care Flexible Spending Account

Child and elder care can present significant expenses for you. A Dependent Care Flexible Spending Account (FSA) allows you to pay less for child and elder care expenses by using tax-free dollars.

A dependent care FSA is available to benefits eligible team members. You can contribute up to $5,000 for the year through pre-tax payroll deductions to help cover your eligible dependent care expenses, including childcare for children up to age 13 and care for dependent elders. Note: You must enroll in this account each Open Enrollment if you want to contribute the next year, even if you already have an account.

The money in your Dependent Care FSA does not carry over to the next plan year; you must “use it or lose it.” Request reimbursement or manage your account on the Wex website.

How the Dependent Care FSA works

Compare Accounts

	Health Care FSA	Dependent Care FSA
Available with...	Cigna Premium Plan Cigna Standard Plan Surest Plan (Or, if you waive medical coverage)	(All benefits-eligible team members may enroll)
Receive company contribution?	No	No
Change your contribution amount anytime?	No	No
Access your entire annual contribution amount as needed?	Yes	No
Access only funds that have been deposited?	No	Yes
Use account money for…	All eligible health care expenses	Eligible dependent care expenses, including child care for children up to age 13 and care for dependent elders
“Use it or lose it” at year-end?	Yes	Yes
Money is always yours to keep?	No	No