Benefits Plans - Flexible Spending Accounts: Health Care FSA or Dependent care fsa?

What’s the difference between a Health Care FSA and a Dependent Care FSA

A Flexible Spending Account allows you to put aside pre-tax dollars to pay for certain specific expenses.  

Health Expenses for the Entire Family

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Health Care Flexible Spending Account

Health Care FSAs cover eligible health-related expenses for you AND your dependents that are not covered or reimbursed by your health plan, dental plan, vision plan, or any other type of insurance.

Many of your typical out-of-pocket health care expenses may be reimbursed from your Health Care FSA. Examples of eligible expenses for you and your family include:

  • Eyeglasses
  • Prescription drug co-pays
  • Office visit co-pays
  • Contact lens solution

Click here to earn more about Health Care FSAs.

 

Day Care Expenses

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Dependent Care Flexible Spending Account

Dependent Care FSAs are used to pay for eligible child care expenses for children under age 13 or day care for anyone who you claim as a dependent on your Federal tax return who is physically or mentally incapable of self-care.

The Dependent Care FSA is not for health care expenses for your dependents.

Examples of Dependent Care FSA eligible expenses include:

  • licensed day care (elder care or child care)
  • nursery school
  • summer day camps

Click here to learn more about Dependent Care FSAs.

 

Limitations
The University of Michigan in its sole discretion may modify, amend, or terminate the benefits provided with respect to any individual receiving benefits, including active employees, retirees, and their dependents. Although the university has elected to provide these benefits this year, no individual has a vested right to any of the benefits provided. Nothing in these materials gives any individual the right to continued benefits beyond the time the university modifies, amends, or terminates the benefit. Anyone seeking or accepting any of the benefits provided will be deemed to have accepted the terms of the benefits programs and the university's right to modify, amend or terminate them.