IBM's Health Care Spending Account lets you use tax-free dollars to pay for eligible health care expenses that aren't reimbursed by your health plans, including deductibles and out-of-pocket healthcare expenses. You may contribute up to $5,100 each year — a maximum of $425 per month — and you must contribute at least $120 annually, or $10 per month. Remember that Health Care Spending Account participation is optional and you must re-enroll each year.
The money you contribute to the Health Care Spending Account comes out of your paycheck on a pre-tax basis (before taxes are deducted). This lowers your taxable income so you pay less in taxes. Since not all health care expenses are paid by your medical and dental plans, you can use the Health Care Spending Account to pay the costs associated with:
- Medical and dental deductibles, and coinsurance or copayments you pay for covered services.
- Expenses exceeding the usual and prevailing rates or plan maximums.
- Vision and hearing expenses not reimbursed by a health care plan.
- Prescription drug copayments and coinsurance.
- Certain over-the-counter medications used for the treatment of illness or injury, such as antacids, allergy medications, pain relievers and cold medications.
Under certain medical options, a Benny™Card, which lets you pay for eligible prescription drug expenses through automatic deductions from your account, is also available for the Health Care Spending Account.
After you join IBM, you will be able to choose to participate in a Health Care Spending Account when you enroll in your IBM health benefits on NetBenefits. Choose the amount you want to contribute to your Health Care Spending Account — from $10 to $425 monthly — up to a maximum of $5,100 each year. IBM will deduct your pre-tax contribution from each paycheck.