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Flexible Spending Accounts Program
Important Notice
The Flexible Spending Accounts Program client service walk-in center remains closed to visitors.
General Information
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 programs offered include the following:
- Health Care Flexible Spending Account (HCFSA) Program
- Dependent Care Assistance Program (DeCAP)
- Medical Spending Conversion (MSC) Health Benefits Buy-Out Waiver Program
- Medical Spending Conversion (MSC) Premium Conversion Program
The HCFSA and DeCAP programs allow 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 Health Benefits Buy-Out Waiver Program and waive City health benefits to receive an incentive payment up to $1,000. To enroll, employees must complete the MSC Health Benefits Buy-Out Waiver Program Enrollment/Change Form and a Health Benefits Application and provide proof of other coverage.
Plan Year 2025
Flexible Spending Accounts Program Brochure
Health Care Flexible Spending Account
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.
Dependent Care Assistance Program
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.
Medical Spending Conversion Programs
MSC Health Benefits Buy-Out Waiver Program
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.
Learn More about the Buy-Out Waiver Program
Watch the Buy-Out Waiver Video
MSC Health Benefits Premium Conversion Program
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.
Learn More about the Premium Conversion Program
MSC Premium Conversion Program FAQs