Flexible Spending Accounts (FSA)

The Healthcare FSA lets you set aside money from your paycheck before taxes to help pay for medical, dental, and vision expenses.

Here’s how it works:

1. During Open Enrollment, you choose an amount to set aside for the coming plan year. That full amount is available to use right away — starting July 1 or your benefits start date.
2. You can pay for eligible expenses using your Navia Benefits Debit Card, or you can pay out of pocket and get reimbursed.
3. If you pay out of pocket, submit a claim form and receipts to get your money back.
4. Keep your receipts — sometimes you’ll need to provide them, even if you use your Navia card.

You can use the money for things like copays, prescriptions, glasses, dental work, and other approved expenses for you or your eligible dependents.

There are several benefits to using a Healthcare Flexible Spending Account:

• It can help you pay for healthcare items you already buy, like over the counter medicine, sunscreen and menstrual products.
• You save money because the money you set aside isn’t taxed.
• There are over 38,000 different ways to use your funds
• The funds can be used to cover medical expenses for you, and your dependents
• You can use your Navia Benefits Card, instead of cash or credit for out-of-pocket healthcare and over the counter medical expenses. 

You can estimate how much you'll save on your taxes using an FSA:

Benefit Tax Calculator with Navia

To use your Healthcare FSA for someone’s expenses, they must be eligible for the City’s medical, vision, or dental plans. 

There’s one exception: domestic partners and their children are not eligible unless they qualify as your tax dependents under IRS rules (specifically, Code 152).

All eligible employees can enroll in a Healthcare FSA during Open Enrollment each May. 

New employees can enroll in a Healthcare FSA during their New Employee enrollment period.

Current employees can enroll, make changes or opt-out of their FSA mid-year in certain cases. Here's some examples:

• Change in employment status for you, your spouse or dependent that impacts your eligibility for healthcare coverage, such as loss or gain of coverage
• Change in legal marital status
• Change in the number of dependents (i.e. birth, adoption, foster placement or death of a dependent)
• Becoming entitled to Medicaid or Medicare (HCFSA only) 

You must contact the City Benefit team within 60 days of the date of any of the changes above. 

There are over 38,000 ways to spend your FSA. Some examples include:

• Over-the-counter drugs
• Personal Protective Equipment
• Menstrual Products
• Prescriptions
• Copays and Coinsurance
• Glasses and Contacts
• Dental Work
• Acupuncture
• Sunscreen
• Breast pumps
• Psychologists and therapy
• Lab fees
• Physical Therapy
• Bandages and medical supplies
• Orthodontia

You can use your Healthcare FSA to pay for health care costs that the IRS normally lets you deduct on your taxes. To use the account, the care must happen while you and/or your eligible dependents are actively enrolled in the Healthcare FSA. Any costs from before you joined, after you stopped contributing, or after the deadline to use your funds won’t be covered.

For a comprehensive, up-to-date list go to Navia's website. 

Shop for products at Navia's FSA store

You can set aside between $120 and $3,300 for the 2025-2026 plan year. 

The amount you elect during Open Enrollment will be divided by 24 and deducted from your bi-monthly paycheck. 

• For example, if you chose to set aside $3,300 for the plan year, $137.50 will be deducted from your paycheck twice a month (bi-monthly).
• Or, if you chose to aside $1,000 during Open Enrollment, $41.66 will be deducted from your paycheck twice a month (bi-monthly).. 

There are no FSA deductions from your 3rd paycheck of the month when it occurs. 

You can estimate how much you'll save on your taxes using an FSA:

Benefit Tax Calculator with Navia

During Open Enrollment every year, think about what health expenses you and your family might have in the upcoming plan year (2025–2026). This can help you choose the right amount to set aside in your Healthcare FSA.

Ask yourself:

• Will I need new glasses or contacts?
• Am I planning for laser eye surgery?
• Is anyone in my family getting braces?
• Do I want to use services like massage or acupuncture related to an acute or chronic medical condition that aren’t covered by my health plan?
• Will I need regular prescriptions or over-the-counter medicines and supplies?

Add up the expected costs for those things. That total can help guide how much you should contribute.

⚠️ If you are on a Moda Health plan, you qualify for Garner Health Reimbursement that could cover some eligible medical expenses. ($1,000 for individuals $2,000 for families). You will want to consider what services you'll use for your Garner reimbursement and what funds you'll use for your FSA. You cannot use your Healthcare FSA dollars to pay for medical costs that will be reimbursed by Garner. This is considered "double dipping" by the IRS due to both accounts being tax-advantaged.  Go more in-depth to learn the difference between your FSA and Garner. 

Remember, if you don't use all the funds you set aside, you can only carry over up to $660 into the 2026-2027 year. Anything over that amount will be lost if you don’t use it.

Mid-year elections are pro-rated so employees do not overcontribute to FSAs through multiple employers.  

The maximum you can contribute mid-year is $137.50 per pay period.

You cannot use your Healthcare FSA dollars to pay for medical costs that will be reimbursed by Garner. This is considered "double dipping" by the IRS due to both accounts being tax-advantaged. 

Do not use your FSA and Garner's Health Reimbursement for the same expenses. 

Learn more about the differences between Garner and an FSA 

Ineligible health care expenses include, but are not limited to: 

• Insurance premiums
• Fitness programs
• Health club dues
• Expenses reimbursed by other sources of insurance
• Nutritional supplements which are merely beneficial to general health and are not used in a course of treatment for a medical condition (or that you do not have a doctor-provided prescription and Letter of Medical Necessity for)
• Massage therapy is generally not covered, but may be an eligible expense when for treatment related to an acute or chronic medical condition. You are required to provide a letter of medical necessity with the diagnosis from your physician or the claim received from the massage therapist must include information indicating the condition being treated and that you were referred by your physician. You need to provide this information only once, per condition. Massage therapy is not covered for treatment for a non-medical reason or for depression. 

For a comprehensive, up-to-date list go to Navia's website. 

No. You can only use your FSA for expenses that take place during your FSA plan year - July 1 through June 30th. 

A Healthcare FSA Plan year with the City is always from July 1 - June 30. 

If you don't use all the funds you set aside, the IRS allows for some funds to carry over into the next plan year. Different plan years have different limits:

• (new plan year) $50 - $660 can carry into the 2026-2027 plan year. Anything under $50 and over $660 will be lost if you don’t use it.
• (previous plan year) $50 - $640 can carry into the 2025-2026 plan year. Anything under $50 over $640 will be lost if you don't use it. 

Here's an example how carryover funds work:

Jane set aside $1,000 in her Healthcare FSA for the year but only used $500. That means she had $500 left at the end of the plan year.

Because the carryover limit is $660, Maria’s full $500 rolls over into the next plan year. She can use that money through June 30 of the next year.

Here's another example:

James set aside $2,000 in their Healthcare FSA but only used $1,200, leaving $800 unspent.

Since the carryover limit is $660, only $660 rolls over to the next year. The remaining $140 is lost, so they won’t be able to use it.

• If you leave your job or become ineligible for benefits, your FSA contributions stop on your last day of work.
• You can only be reimbursed for eligible expenses you had between July 1 and your last day — unless you choose to continue your Healthcare FSA through COBRA (you would pay for it with after-tax dollars).
• If you’re rehired during the same plan year (more than 30 days after leaving) and you didn’t keep your FSA through COBRA, you can’t re-enroll until the next plan year.
• If you're on approved family leave, call the Benefits Team at 503-823-6031 or email benefits@portlandoregon.gov to learn your options for continuing or stopping your FSA.

No, since the IRS does not recognize Domestic Partners and Domestic Partner’s children as tax dependents, we cannot use FSA funds towards their day care and healthcare expenses.  

Your full annual amount is available on July 1 or your benefits start date if you’re a new hire joining mid-year.

You can log into Navia using the company code: YPD

Log into Navia

No, Navia Benefit Cards (FSA Cards) are valid for 3 years. If you are re-enrolling in an FSA you do not need a new card. 

You have a few ways to access your FSA money:

1. Navia Benefits Card - Use it like a debit card at the doctor, pharmacy, daycare, etc.

2. Pay Your Provider - Pay providers directly from your account — quick and easy!

3. Automatic Health Plan Claim (Moda members only) - Moda sends your out-of-pocket cost info to Navia, and Navia sends you the money — no forms needed.

4. File a Claim Online - Upload your receipts and get reimbursed online.

Keep your receipts! They must show:

• Date of service
• Patient’s name
• Description of service or item
• Amount you paid
• Provider name

If you carryover funds from your previous FSA (for the 2024/2025 plan it must be between $50 and $640) - your funds will be available on July 25, 2025.

For the 2025–2026 plan year,  the last day to turn in your claims is September 28, 2026.

For the 2024 - 2025 plan year, the last day to turn in your claims is September 30, 2025.

Make sure your expenses were incurred between July 1, 2025 and June 30, 2026, and get all your paperwork in by the deadline — otherwise, you won’t be reimbursed.

Yes! Save your receipts related to FSA expenses for at least 3 years, in the event of an IRS audit. Physical and electronic receipts are both acceptable so long as they include patient name, provider’s name, date of service, type of service & cost. EOBs are also acceptable. 

Here’s how it works:

1. During Open Enrollment each year, you choose an amount to set aside for the plan year ahead. That amount is taken out of your bi-monthly paycheck.
2. You pay for dependent care like you normally would.
3. After the care is provided, you submit a claim form and receipts to get reimbursed.
4. You’ll be reimbursed up to the amount that’s in your account at that time. If your claim is for more than what’s currently available, you’ll automatically get the rest as more money is added to your account each payday — until the full amount is paid or you reach your annual limit.

All eligible employees can enroll in a Dependent Care FSA during Open Enrollment each May. 

New employees can enroll in a Dependent Care FSA during their New Employee enrollment period.

Current employees can enroll, make changes or opt-out of their FSA mid-year in certain cases. Here's some examples:

• Change in employment status for you, your spouse or dependent that impacts your eligibility for healthcare coverage, such as loss or gain of coverage
• Change in legal marital status
• Change in the number of dependents (i.e. birth, adoption, foster placement or death of a dependent)
• Significant change in cost of dependent care
• The need arises for care that was not there before, such as returning from a parental leave (DCFSA only) 

You must contact the City Benefit team within 60 days of the date of any of the changes above. 

You can set aside $120 to $5,000 per year, or $2,500 each if you and your spouse file taxes separately. 

For mid-year enrollments, that’s up to $208.33 per pay period.

Remember to estimate your expenses carefully; the Dependent Care FSA also has a “use it or lose it” feature, so any money you do not claim before the deadline will be lost. 

No. This creates a tax liability that would need to be re-paid. If both you and your spouse contribute towards DCFSA, ensure the calendar year maximum does not exceed $5,000 total with both of your contributions. 

Your balance builds each pay period. You can only spend what’s already in your account.

There is no rollover provision for the Dependent Care FSA, it is use it or lose it. 

Make sure to calculate exactly how much you will need or you risk losing it!  

You can use your Dependent Care FSA to pay for eligible dependent care expenses, like childcare, daycare, or before and after-school care, for a child under age 13 or for a spouse or other dependent who is physically or mentally unable to care for themselves. This could include:

• Childcare
• Day camps
• Nanny or Au pair
• Before and after school care
• Preschool
• Elder care

For a comprehensive, up-to-date list go to Navia's website. 

Your Dependent Care FSA can only be used for certain types of care that allow you (and your spouse, if you have one) to work, look for work, or attend school full-time. You cannot use it for:

• School tuition for kindergarten and above
• Overnight camps
• Babysitting that’s not work-related (like date nights or weekends)
• Care provided by someone under age 19 or someone you claim as a tax dependent
• Private school or tutoring
• Care provided by your spouse or your child’s parent
• Educational supplies and activities (like field trips)

To be eligible, the care must be necessary so that you can work — not just for convenience or personal time.

Dependent Care FSA funds are available to use for children under age 13 at the time of care. If your child turns 13 during the plan year, you can only use Dependent Care FSA funds for them up to the date of their birthday. 

You can pay many of your ongoing eligible healthcare and dependent care expenses directly from your FSA account with no need to fill out paper forms*. It’s quick, easy, secure, and available online at any time. 

You can also file a claim online to request reimbursement for your eligible expenses. 

Depending on the cause of the mid-year change, you may be eligible to change your Dependent Care FSA election for the balance of the plan year. Contact the City Benefit team within 60 days of the date of the change. 

Yes, as long as your parent is your tax dependent.