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Flexible Spending Accounts Program
Important Notice
The Flexible Spending Accounts Program client service walk-in center remains closed to visitors.
As always, you can speak with a Customer Service Representative about the program and your account(s) on the phone by calling at (212) 306-7789.
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.
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