Health Care Spending Account (HCSA)
The HCSA is an excellent tool to help employees plan and budget for qualified health care expenses. It provides you with the ability to pay for you and your family’s out-of-pocket health expenses with pre-tax dollars, up to a $2,500 annual maximum election. Effective for the 2014 plan year, the IRS carryover provision allows you to rollover up to $500 of unused funds into the following plan year. Unused funds in excess of the carryover provision will be forfeited.
Health Reimbursement Account (HRA)
The health reimbursement account is funded solely by Colorado Springs Utilities and is a component of the medical plan. You may receive the HRA standard funding if enrolled in a medical plan. Additional HRA wellness funding may be earned by participating in the Vitality wellness program. Funding amounts vary depending on the medical plan you select and coverage level elected. You may use the HRA funding to pay for the same qualified out-of-pocket health expenses as the health care spending account. HRA funds rollover year-to-year as long as you remain enrolled in a medical plan. Additionally, the funds can be rolled over into the Retirement Health Savings Account if you retire from Colorado Springs Utilities.
Dependent Care Spending Account (DCSA)
Paying dependent day care expenses with a DCSA is an excellent way to help save money on taxes. It allows you to pay for out-of-pocket dependent day care expenses with pre-tax dollars up to a $5,000 annual maximum election.
Flores and Associates is our contracted vendor for spending accounts.
