Health Care Reimbursement Account

The Health Care Reimbursement Account may also be referred to as a Flexible Spending Account or FSA.


How Does It Work?

 

A Health Care FSA can reimburse you for eligible Health Care expenses that are not covered by your health insurance plan. These include deductibles, copays and certain out-of-pocket expenses. Click here to learn more.

 

How Much Should I Contribute?
 Costco allows Employees to choose how much they would like to contribute. Part Time employees can choose any annual amount between $120 and $2,500. Full Time employees can choose any annual amount between $120 and $5,000.

Consider last year's health-related expenses, including medical, dental, vision or pharmacy costs you foresee that might not be covered under your health plan. Also consider any changes in your family status that might have an impact on these expenses.

For help deciding how much to contribute, check out the FSA Savings Calculator.

  
What are Eligible Expenses?
 

All expenses must be qualified medical, vision, pharmacy, mental health, or dental benefit expenses as defined in Section 213(d) of the Internal Revenue Code. For a complete list, click here.

Below are examples of eligible expenses that are reimbursed through a Health Care FSA:

  • Chiropractic treatment
  • Contact lenses/saline solution
  • Copayments/coinsurance
  • Deductibles
  • Dental work/orthodontia
  • Doctor’s fees
  • Eye exams
  • Eyeglasses
  • Hearing aids
  • Laboratory fees
  • OTC medicines
  • Orthodontia
  • Prescriptions
  • Psychiatric treatment
  • Routine physicals
  • Weight Watchers® (as treatment for obesity or an obesity-related disease)
  
How Much Could I Save in Taxes?
 

Your savings will depend on several factors, including your income, tax bracket and yearly health care expenses. For example, assuming an annual income of $40,000, a 15% tax bracket, and estimated health care expenses of $2,000, your tax savings will be approximately $453 annually by using a Health Care FSA.

 With FSAWithout FSAFSA Savings
Annual Income:$40,000$40,000 
Estimated Health Care Pretax Contributions:$2,000$0 
Taxable Income:$38,000$40,000 
Estimated Federal Withholding:$5,163$5,463 
Estimated FICA:$2,907$3,060 
Health Care Expenses (without FSA):$0$2,000 
Net Pay:$29,930$29,477$453


Filing Status: Head of Household with one dependent. These projections are only estimates of 2006 tax information and should not be assumed to be tax advice.

Consult a tax advisor to determine the appropriate tax advice for your situation. To see how much YOU can save, check out the FSA Savings Calculator.
  
How am I Reimbursed?
 

We make reimbursement easy! We offer several automatic reimbursement options so you don't have to complete a paper claim form.

For forms, click here