September 30, 2024
A MoneyPlus Medical Spending Account (MSA) allows you to make pretax contributions to pay for eligible medical expenses. Enrolling in an MSA can help reduce your overall healthcare costs, and it’s easy to use. You’ll receive an ASIFlex Card, which functions like a debit card. You can use this card to spend funds as an alternative to submitting claims for reimbursement.
When you enroll in an MSA, you will pay less in taxes because your income will be reduced by the amount you contribute. Enroll in an MSA for 2025 during this year’s open enrollment and take advantage of these tips to get the most value from your account.
Access your annual contribution on day one.
Your entire contribution amount is available to you on your coverage effective date. You do not have to wait for the funds to accumulate in your account before using them for eligible medical expenses. Your annual election amount will be divided into equal installments and deducted from each paycheck before taxes. As you have eligible expenses, you have two options—use your ASIFlex Card or pay for the expenses out of pocket and request reimbursement.
Use your MSA to pay for your spouse and dependents, too.
You can use the money in your MSA to pay for your spouse and dependent children’s eligible medical expenses. So, when you’re deciding how much to contribute, be sure to consider everyone’s potential expenses.
Pay for eligible medical, dental and vision expenses, as well as supplies.
MSAs aren’t for traditional health care costs only, like copayments and coinsurance. You can use your funds to pay for eligible dental and vision expenses, too. This includes dental cleanings, orthodontia, eye exams, prescription eyeglasses, contacts and more. You can also use your MSA funds for other health care items, like over-the-counter medicine, sunscreen and first aid supplies.
Carry over your unused funds into 2026.
An MSA through PEBA also includes a carryover provision. This means you can carry over up to $640 of unused MSA funds into the next plan year. So, if you don’t spend your entire account balance, you might be able to keep some of that money for the following year.
How much can you save?
The monthly savings example below shows how paying eligible medical expenses with a pretax payroll deduction might increase your spendable income. The scenario is for a married person who covers themself and two children in the Standard Plan and Basic Dental, and who is also a member of the South Carolina Retirement System, or SCRS.
| With MoneyPlus | Without MoneyPlus | MoneyPlus advantage | |
|---|---|---|---|
| Gross monthly pay1 | $3,750.00 | $3,750.00 |
|
| State retirement contribution (9%) | - $337.50 | -$337.50 |
|
| Medical Spending Account fee | - $2.14 | - $0.00 |
|
| MoneyPlus pretax payroll deduction |
|
|
|
Medical Spending Account | - $266.00 | - $0.00 |
|
Standard Plan, Basic Dental Premiums | - $157.58 | - $0.00 |
|
| Taxable gross income | $2,986.78 | $3,412.50 | $425.72 |
| Estimated payroll taxes (27%)2 | - $806.43 | -$921.38 | $114.95 |
| Expenses | - $337.50 | -$337.50 |
|
Medical expenses | - $0.00 | -$337.50 |
|
Standard Plan, Basic Dental premiums | - $0.00 | -$337.50 |
|
| Your take-home pay | $2,180.35 | $2,067.54 | $112.81 |
Enroll in an MSA during open enrollment.
It’s easy to set aside pretax money to pay for your eligible medical expenses in 2025. Simply enroll in a Medical Spending Account during open enrollment, which is October 1-31. Visit www.peba.sc.gov/oe to review your benefit options for 2025. To learn more about MSAs, visit www.peba.sc.gov/MoneyPlus.
1Assumes annual salary of $45,000.
2Includes state and federal taxes; married, filing jointly.