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Health Care Flexible Spending Account

Leidos offers the following Healthcare Flexible Spending Accounts (FSAs):

  • Healthcare FSA
  • Limited Purpose Healthcare FSA (LPFSA)

Employees enrolled in a Healthy Focus plan and a Health Savings Account are eligible to participate in the Limited Purpose (HSA Compatible) FSA. The following chart compares the two types of Healthcare FSAs:

HSA-Compatible
(Limited Purpose Healthcare FSA)		Standard Healthcare FSA
  • Use it for eligible dental and vision expenses if enrolled in an HSA
  • For medical and prescription drug expenses after medical plan deductible is met
  • Use it if not enrolled in Healthy Focus medical plan w/ HSA or any other High Deductible medical plan with HSA
  • For eligible medical, prescription drug, dental and vision expenses

 

In 2025, a participant can contribute up to $3,200 on a pre-tax basis to pay for eligible medical, dental, and vision expenses (as applicable, depending on which type of Healthcare FSA you have). Examples of expenses include:

  • Eligible services not covered by a medical, dental or vision plan (except for cosmetic procedures);
  • Annual deductibles;
  • Copayments; and
  • Out-of-pocket expenses

Important: Participants must make an annual election each year. Healthcare Flexible Spending Account elections do not automatically roll over into the next plan year.

Once enrolled in the Healthcare Flexible Spending Account, a participant may not change the amount he or she contributes to the account, unless the participant experiences a qualified status change. See "Changing Coverage (Qualified Status Changes)" in the Participating in the Plans section for more information about qualified status changes.

Participants will be able to carry over up to $640 of unused Limited Purpose FSA or Healthcare FSA balance remaining at the end of the 2025 calendar year into the following calendar year. The carry-over feature helps participants avoid losing unused money at the end of the year!

Expenses

Generally, any healthcare expense that the IRS allows as a deduction on income tax returns is eligible for reimbursement, provided it is not reimbursed from any other source. Only expenses incurred while you are participating in the Healthcare FSA are eligible for reimbursement.

You may be reimbursed for your own expenses as well as those for your qualified dependents. This includes expenses incurred for anyone a participant is entitled to claim as a dependent on his or her tax return, regardless of whether that dependent is covered under our medical, dental or vision plans. This generally includes your spouse and your children up to age 26. For this purpose, "children” means your natural children, your stepchildren, your legally adopted children, and children placed with you for adoption. Only expenses incurred while you are participating in the Healthcare FSA are eligible for reimbursement.

Expenses for a domestic partner or children of a domestic partner are not eligible for reimbursement under any Leidos Health Care Flexible Spending Account.

Health-related expenses that qualify for reimbursement are defined by the IRS (details can be found in IRS Publication 502, which provides general guidance as to whether expenses qualify as medical care under Section 213). Keep in mind that eligible expenses may change if the tax laws are revised. To view a comprehensive list of eligible expenses, visit the IRS website or the HSA Bank website The expenses listed are eligible when not reimbursed by an insurance plan/policy or Medicare.

 

Reimbursement

Participants have the following options in which to receive reimbursement from their HSA Bank Healthcare FSA:

  • Healthcare Debit Card — Participants can use their HSA Bank debit card at select pharmacies, healthcare providers and general merchandise stores that have an IRS-approved inventory and checkout system. In most instances, the card transaction will be automatically verified at checkout. With this verification, participant may have to submit a receipt to HSA Bank after the transaction. Participant is required to keep each receipt for tax purposes and in the event it is needed for verification.

  • Request Reimbursement Online — Participants will be able to claim funds from their healthcare flexible spending account online via the HSA Bank member portal. As part of the online process, they can upload the backup documentation and associate them directly to the claim. Most claims are processed within a few days after they are received and payments are sent shortly thereafter. 

    To set up Direct Deposit, contact HSA Bank. Participant will receive a check in the mail if they do not set up their direct deposit information with HSA Bank. 

    The participant can submit their claim form, by downloading the Healthcare Flexible Spending Account claim form and emailing it to [email protected] or mailing it to:

    HSA Bank

    P.O. Box 2744

    Fargo, ND 58108-2744

  • Pay Doctor/Provider Online — Participant can pay many of their eligible healthcare expenses directly from their health care flexible spending account without filling out paper claims forms. Just enter the provider's name and other requested information with the backup documentation and payment will be sent directly to the provider.

Participants in the Healthcare Flexible Spending Account can be reimbursed for the full amount that they elected to contribute for the year at any time during the year, even if they do not currently have that much money in their account.

If participants have concerns about how a claim has been administered, or wish to appeal a claims decision, information on relevant procedures is available in the Plan Information section.

If You Leave Leidos

If a participant leaves Leidos employment, he or she may submit claims for expenses incurred only through the employment end date; however, April 30 of the following year is the deadline for filing for reimbursement of those claims.

Electing COBRA Coverage

When your participation in your Healthcare Flexible Spending Account ends due to one of the qualifying events listed below, you may have limited rights under the Consolidated Omnibus Budget Reconciliation Act (COBRA) to continue your account until the end of the calendar year in which your participation ends:

  • You leave the Company (for reasons other than gross misconduct);
  • Your coverage stops because you no longer meet the eligibility requirements;
  • You die (in which case, your dependent(s) may be eligible to continue coverage for the remainder of the calendar year; OR
  • You fail to return to work at the end of your leave under FMLA

If you have funds remaining in your Healthcare Flexible Spending Account, the COBRA administrator may provide you with a COBRA election form for continued coverage for the remainder of the current calendar year. To elect COBRA continuation coverage, you must complete and return the form to the COBRA administrator within 60 days after your coverage ends or within 60 days after you receive the form (whichever is later). If you elect COBRA coverage, the effective date of the coverage is the date of the qualifying event. You will have an additional 45 days following your election of COBRA coverage to pay any outstanding premiums.

For the Healthcare FSA, you can continue the coverage until the end of the calendar year, as long as:

  • You continue to make contributions for coverage within 30 days of the due date, and
  • The Company is still offering the Plan to its employees.

You will have to pay 100% of the monthly contribution (i.e., the amount (for the current year) that had been withheld each month from your paycheck for Healthcare FSA contributions), plus a 2% administrative charge for coverage under COBRA. In addition, your contributions will be made on an after-tax basis.