Employees can enroll in the Health Care Flexible Spending Account (HCFSA) Program, the Dependent Care Assistance Program (DeCAP), and the MSC Health Benefits Buy-Out Waiver Program for Plan Year 2018 during the Flexible Spending Accounts (FSA) Program Annual Open Enrollment Period. Employees who have a health plan premium deduction and who wish to change their tax status under the MSC Premium Conversion Program can do so during this period. The effective enrollment date is January 1, 2018.
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 $1,000 for Plan Year 2018.
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) 306-7760.
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 or Union) with before-tax dollars.