Human Resources

University of Massachusetts > Human Resources > Optional Pre-Tax Programs

DCAP and HCSA Programs

Two pre-tax employee programs, the Health Care Spending Account (HCSA) and Dependent Care Assistance Program (DCAP), are offered through the Group Insurance Commission and administered by Benefit Strategies, LLC (http://www.benstrat.com).

Customer Service: 1-877-353-9442.

Dependent Care Assistance Program (DCAP)

The Dependent Care Assistance Program (DCAP) allows employees to pay for certain dependent care expenses with before-tax dollars.  Participating in DCAP can significantly reduce your federal and state income taxes.  Through DCAP, participants may pay on a pre-tax basis for qualified dependent care expenses, such as child and elder care, after school programs, and day camp. 

The program allows a participant to contribute up to $5,000 per family annually on a pre-tax basis as a payroll deduction.  For taxpayers in a 28% income tax bracket, a $5,000 contribution to the DCAP would save an estimated $1,400 in taxes.

Health Care Spending Account (HCSA)

The Health Care Spending Account (HCSA) allows active employees to pay for out-of-pocket health care expenses on a pre-tax basis, reducing participants' federal and state income taxes.  You may set aside from $500 up to a maximum amount of $5,000 annually.

Examples of eligible expenses include:

• Physician office and prescription drug co-payments
• Medical deductibles and coinsurance
• Eyeglasses and contact lenses not covered by your health or vision plan
• Orthodontia and dental benefits not covered by your dental plan
• Most over-the-counter drugs

ELIGIBLE EXPENSES:

Click here for a list of DCAP and HCSA eligible expenses (PDF)

REIMBURSEMENT:

Flexible Benefit Plan Claim Form - use this form to submit Health Care Spending Account (HCSA) and Dependent Care Assistance Program (DCAP) claims for reimbursement.  Be sure to keep copies of all receipts.

It is important to estimate your expenses carefully, as the Internal Revenue Service requires that any unused funds in a participant's account at plan year-end be forfeited.

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