The City of New York Employee Benefits Program provides two programs, the Medical Spending Conversion (MSC) and the Health Care Flexible Spending Account (HCFSA), that offer participants the opportunity to use pre-tax funds to increase take-home pay. These programs are administered through the Flexible Spending Accounts (FSA) Program.
1. Premium Conversion Program
All employees who have payroll deductions for health benefits are automatically enrolled in the MSC Premium Conversion Program. The Premium Conversion Program allows for premiums of health plan deductions on a pre-tax basis, thus reducing the amount of gross salary on which federal income and Social Security (FICA) taxes are calculated. Employees may decline enrollment in the Premium Conversion Program when they first become eligible for health plan coverage or during the FSA Open Enrollment Period, which is in the fall of each calendar year. To do so, employees must complete an MSC Premium Conversion Program Form and the Health Benefits Application and submit them for approval to their personnel office.
2. Health Benefits Buy-Out Waiver (Employees Only)
The MSC Health Benefits Buy-Out Waiver Program entitles all eligible employees to receive a cash incentive payment for waiving their City health benefits if non-City group health coverage is available to them (e.g., a spouse’s/domestic partner’s plan, coverage from another employer). For Plan Year 2019, the incentive payments will be $500 for those waiving individual coverage and $1,000 for those waiving family coverage. Incentive payments will be made in June and December of the Plan Year and will be included in the employee’s regular paycheck. This amount will be prorated for any period less than six months by the number of days the employee is participating in the MSC Health Benefits Buy-Out Waiver Program.
Eligible employees who have waived health benefits coverage may enroll for coverage subject to the waiting period. Reinstatement of Coverage is only possible within 30 days of a Qualifying Event or during the Open Enrollment Period. Such enrollment will be on a pre-tax basis (unless enrollment in the Premium Conversion Program is declined).
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
The Health Care Flexible Spending Account (HCFSA) Program is designed to help employees pay for necessary out-of-pocket medical, dental, vision, and hearing aid expenses not covered by insurance. HCFSA is funded through pre-tax payroll deductions, thereby effectively reducing the employee’s taxable income.
For additional information about the Medical Spending Account Program and/or the Health Care Flexible Spending Accounts Program, please visit the Flexible Spending Program pages on this website. Or call the Administrative Office at (212) 306-7760.