Understanding Your Medcom Flexible Spending – How To Guide

A medical Flexible Spending Account (FSA) allows you to set aside pre-tax dollars to pay for medical, dental, and vision expenses that are not covered by another source.

Keep these things in mind:

  • There is a $2,500 annual maximum per employee per employer. This maximum is set by the employer and can be less than this amount. Please consult your Summary Plan Description for the maximum applicable to your Plan.
  • Expenses incurred by your spouse and dependents are covered, even if they are not enrolled under your medical plan.
  • You must enroll each year, regardless of whether your election is changing or not.
  • Be conservative. If you don’t use the money in your account within the plan year, you lose it. Some exceptions may apply if your employer’s plan allows for a rollover or grace period.
  • Once the plan year has started, you cannot change your election unless there is an IRS-approved status change event.


  • Ineligible expenses:

  • Costs paid or reimbursed by another source
  • Expenses that are not considered medical care
  • Over-the-Counter items that are considered “drugs” or “medicines” unless you have a prescription
  • Services incurred in a different plan year
  • Cosmetic procedures, such as teeth bleaching
  • Vitamins and supplements