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Health Care Reimbursement Accounts

A Health FSA or an HCR Account is an Employer sponsored benefit defined under Section 213 of the Code and allows for employees to pay for eligible medical expenses on a pre-tax basis through salary reduction.  For a more comprehensive listing of eligible expenses available, please access the following literature:

IRS Publication 502

Employees can utilize the full annual projected amount to pay for out of pocket, eligible medical expenses that are not covered by insurance (i.e. annual deductibles, office co-payments including dental and vision, prescriptions, some over-the-counter items, and orthodontia) with tax-free funds. 

The employee has the option to contribute to the plan up to the federal limit of $2500.  As the employer you also have the option to set a lower maximum contribution, referred to as a "Med Cap."  

In conjunction with an HCR Account, PAI offers the benefit of a Prepaid Benefit Visa® Card to each participant.  The Prepaid Benefit Visa® Card allows your participating employees to have immediate access to their benefits every hour of every day.