What Is a Health Care Flexible Spending Account?

A Health Care Flexible Spending Account (HCFSA) lets you set aside before-tax money to use for certain eligible expenses not covered by your health plans.

Your HCFSA reduces how much you pay in taxes because your contributions are taken out of your paycheck pre-tax and do not count toward your taxable income (that is, the contributions are “before-tax”). HCFSAs also spread health care costs throughout the year, with access to the full annual election amount up front. Contributing money from every paycheck can make it easier to pay out-of-pocket health care expenses such as prescriptions, copays and deductibles.

Good to know: The amount you elect to contribute to an HCFSA is available as of January 1 even before you have contributed the full amount.
 

Who's Eligible

All U.S. benefits-eligible employees, with the exception of employees enrolled in Option C coverage under the Medical Plan, may set aside money in a Health Care FSA on a before-tax basis to pay for eligible health-related expenses. You do not have to enroll in the Firm’s Medical, Dental or Vision Plans to be eligible to contribute to the HCFSA.
 

Eligible Expenses

You may use your HCFSA funds to pay for eligible medical, prescription drug, vision and dental expenses, including deductibles, coinsurance and copays, as well prescription eyeglasses, contacts and even transportation costs to see your health care providers (subject to IRS limits). Expenses can be for you or your family members as long as they’re a tax-qualified dependent.

View a list of eligible expenses.

How It Works

Contribute

Choose your contribution amount when you enroll.

In 2024, you may contribute between $100 and $3,200. The money will be deducted from your paychecks in equal amounts throughout the year before taxes are calculated. You can make changes to your contribution during the year only if you experience a qualifying life event. To avoid losing any unused HCFSA amounts, make sure you estimate your out-of-pocket health care expenses carefully before electing how much to contribute each year.

Pay

If you are enrolled in Medical Plan Option A or Option B for medical coverage, there are four ways to pay for eligible out-of-pocket medical expenses from your HCFSA administered by UnitedHealthcare (UHC):

• You’ll be issued an FSA debit card that you may use to pay for qualifying health care expenses or products with your HCFSA dollars. Your FSA debit card works just like any debit or credit card at check out; whether that’s in your doctor’s office, the drug store or an online purchase. The funds will be withdrawn from your HCFSA instead of your bank account.
• If you participate in the Firm’s Medical, Dental or Vision Plans, you may elect automatic reimbursement for your eligible out-of-pocket health care expenses for in-network services. Elect this feature on the Benefit Center website when you make your elections. Note: Automatic reimbursement is not available for out-of-network services, HMSA or Kaiser HMO participants or for expenses relating to your domestic partner.
• On myuhc.com, you can submit your expenses (claims) online. Claims are processed in about seven business days or less, which can mean faster reimbursement. You can even submit multiple expenses and receipts for different family members at once. If you have not already done so, you will need to create an account on myuhc.com to view balances, claim history and submit claims online: Go to myuhc.com and select “Register Now” – and if you’re a UHC member, enter your health plan ID number; if you’re not a UHC member, enter your Social Security number and date of birth.

If you prefer to submit out-of-network claims by mail, you may continue to do so by completing an FSA claim form (available at myuhc.com or the Benefit Center website: type benefits in your intranet browser) or go to mybenefits.morganstanley.com/benefits and attach an itemized bill or receipt, or the Explanation of Benefits from your Medical, Dental or Vision Plan administrator reflecting your out-of-pocket expenses.

Accessing the FSA Site
UHC administers employees’ HCFSAs and maintains the website where you can check your balance, submit claims and find information about your account.

If you are not enrolled in the Medical Plan through UHC, you will need to create an account, using Morgan Stanley’s group number: 202942. Go to myuhc.com and select “Register Now.” You can register using your Social Security number and date of birth if enrolled with Cigna.

Spend

You can use your 2023 HCFSA for eligible expenses incurred until December 31, 2023. You have until April 30, 2024, to submit claims for reimbursement for expenses incurred in 2023.

Roll Over

Any unused funds up to $610 in your 2023 HCFSA balance may roll over to 2024 as long as you reenroll in an HCFSA for 2024 and do not enroll in Medical Plan Option C. The rollover funds from 2023 into 2024 must be used by December 31, 2024 (for eligible 2024 expenses) or they will be forfeited. You will have until April 30, 2025, to submit claims for reimbursement for expenses incurred in 2024.

Important: Carried over 2023 Health Care and Limited Purpose FSA funds will be applied to 2024 eligible expenses after funds you contribute to a 2024 FSA. Additionally, you may carry over 2023 funds only once. That is, at the end of 2024, you may carry over up to $610 of unused 2024 FSA funds; all unused 2023 carryover funds (as well as any used 2024 FSA funds above $610) will be forfeited back to the plan.

Questions about your FSA? Call UnitedHealthcare^® at 1-888-332-8891, TTY 711.