The Healthcare Flexible Spending Account (HFSA) allows faculty and staff to set aside money pretax to pay for health-related expenses not covered by insurance. 

Features

• Not subject to federal tax
• Full annual election amount available on the effective date of election
• Ability to use for expenses incurred by the paticipant, spouse, or eligible dependents

Rules

• In 2023, participants may contribute between $100 and $3,050 into an HFSA.
• In 2024, participants may contribute between $100 and $3,200 into an HFSA.
• IRS rules do not allow participants to use the HFSA to be reimbursed for expenses incurred by a civil union or domestic partner or the partner’s children.
• In 2023, balances of $50 up to $610 will automatically rollover to 2024 for active employees.
• In 2024, balances of $50 up to the new maximum of $640 will automatically rollover to 2025 for active employees.
• If a participant’s employment terminates, expenses incurred after the termination date are not eligible for reimbursement, unless coverage is continued through COBRA.
• Contributions are subject to New Jersey State income tax.
• For a list of additional eligible and  ineligible expenses covered under the plan, visit Inspira Financial, formerly Payflex.

Eligibility

All benefits-eligible faculty and staff, except for visiting fellows, may elect an HFSA. For postdoctoral research fellows, pretax deductions can only be taken pretax from the wage supplement.

Deadlines and Application Process

• Faculty and staff may elect this benefit within 31 days of hire date, during the Annual Open Enrollment period, or if there is a qualifying life event.
• Participants have until March 31 each year to submit claims for eligible expenses incurred during the prior calendar year. 
• To continue contributing to the HFSA from one calendar year to the next, a new election must be made during the Annual Open Enrollment period; elections do not carry over from year-to-year.

How to be Reimbursed

• Inspira Financial, formerly Payflex, provides one debit card per family member; additional cards can be ordered by contacting Inspira Financial. Participants may use the debit card at the point of service to pay for eligible expenses.
• File claims online on Inspira Financial website or submit a claim form. An Explanation of Benefits Statement and/or receipt from the provider is required. To set up an online account, participants need to provide their Princeton benefits ID number located in HR Self Service under Benefit Details. 
• In accordance with IRS guidelines, participants may be contacted by Inspira Financial and required to provide additional documentation to substantiate a claim. If the participant does not provide documentation to Inspira Financial to substantiate their claim in the required time frame, IRS regulations require that overpayments are reported as taxable income on the participant's W2.
• Participants can arrange for direct deposit of their reimbursements through Inspira Financial website.