The City of New York offers its employees a Flexible Spending Accounts (FSA) Program, which is allowable under Internal Revenue Code (IRC) Section 125. The Program allows City employees to deposit a portion of their pre-tax income into accounts maintained for certain health and dependent care expenses. Employees covered by a non-City group health plan can enroll in the MSC Program and waive City health benefits to receive an incentive payment, up to $3,000 for Plan Year 2016 and up to $1,000 for Plan Year 2017.
To enroll, you must complete the MSC Health Benefits Buy-Out Waiver application and a Health Benefits Application and provide proof of other coverage.
The Medical Spending Conversion (MSC) Health Benefits Buy-Out Waiver Program allows eligible employees who can obtain non-City group health benefits to waive their New York City health benefits in return for an annual cash incentive payment.
For questions about the MSC Buy-Out Waiver Program, please call: (212) 306-7507.
The Medical Spending Conversion (MSC) Premium Conversion Program enables eligible employees to pay for their health plan premium deductions on a pre-tax basis, thereby reducing their gross income for tax purposes.
DeCAP allows City employees to pay for eligible dependent care expenses on a pre-tax basis, with deductions taken directly from paychecks. These deductions reduce an employee's gross income on his/her Form W-2 for federal and Social Security tax purposes.
The Health Care Flexible Spending Account (HCFSA) Program is a way to pay for eligible medical expenses (not covered by insurance), dental, vision, and hearing expenses (not covered by the Welfare Fund) with before-tax dollars.