FLEXIBLE SPENDING ACCOUNT

A section 125 Flexible Spending Account (FSA) Program offers tremendous opportunity to reduce your taxes by paying for unreimbursed Medical Expenses and Dependent Care Expenses using pre-tax Dollars. When using this program, you will reduce your taxable income and have fewer taxes taken out of your paycheck. You will never pay Federal, State or Social Security Taxes on the money sent to the FSA, thereby giving you more income to spend.

This plan is part of an enhanced employee benefits package.  To understand some of the advantages of a Flexible Spending Account please go to the Questions & Answers section and click on the appropriate selection.  This will provide a better understanding of the advantages for both business, (how you can save additional money), and employees, (not having to pay taxes on the monies that are withheld) to bring home the most money in your paycheck. If you have additional questions about the 125 flexible spending plan you may e-mail a specialist at sillges@cbsadmin.com   

Click here to download the 125 Flex reimbursement form.

Sample Health Care Expenses

PRESCRIPTION DRUGS

Allowable expenses:

• Prescription drugs or insulin
• Birth control drugs (prescribed)

Expenses specifically disallowed:

• Cost of non-prescription drugs

MEDICAL

Allowable expenses:

• Wheelchair or autoette (cost of operating/maintaining)
• Crutches (purchased or rented)
• Special mattress & plywood boards prescribed to alleviate arthritis
• Oxygen equipment and oxygen used to relieve breathing problems that result from medical condition
• Artificial limbs
• Excess cost of orthopedic shoes over cost of ordinary shoes
• Hearing aids
• Batteries for operation of hearing aids
• Physician’s fees
• Obstetrical expenses
• Hospital services
• Nursing services for care of a specific medical ailment
• The Social Security tax paid with respect to wages of a nurse when nurse’s services qualify
• Surgical or diagnostic services
• Services of chiropractors and osteopaths
• Anesthesiologist’s fees
• Gynecologist’s fees
• X-ray treatments
• Treatment for alcoholism or drug dependency
• Acupuncture
• Vaccinations
• Physical therapy
• Routine and preventive physicals
• School and work physicals

Expenses specifically disallowed:

• Cosmetic surgery that improves the patient’s appearance but does not meaningfully promote the proper function of the body or prevents or treats an illness or disease
• Fees for exercise, athletic, or health club membership
• Marriage counseling provided by clergyman
• Physical treatments unrelated to a specific health problem (e.g. massage for general well-being)
• Stop smoking programs for general well-being

DENTAL & ORTHODONTIC

Allowable expenses:·

• Dental care
• Artificial teeth/Dentures
• Braces, orthodontic devices

VISION

Allowable expenses:

• Optometrist’s or ophthalmologist’s fees
• Eyeglasses, contact lenses, prescription sunglasses

ASSISTANCE FOR THE HANDICAPPED

Allowable expenses:

• Cost of guide for a blind person
• Cost of note-taker for a deaf child in school
• Cost of Braille books and magazines in excess of cost of regular editions
• Seeing Eye Dog (cost of buying, training, and maintaining)
• Household visual alert system for deaf person
• Special Devices, such as tape recorder and typewriter, for a blind person

PSYCHIATRIC CARE

Allowable expenses:

• Services of Psychotherapists, psychiatrists and psychologists
• Psychiatric therapy for sexual problems
• Legal fees directly related to commitment of mentally ill person

Expenses specifically disallowed:

• Psychoanalysis undertaken to satisfy curriculum requirements of a student

If you have a health care expense which is not listed on this sheet, please call CBS Administrators toll free at 866-770-0404 to determine whether it is an allowable expense or you may e-mail one of our specialists.