Human Resources will be spotlighting benefits during the next few weeks leading up to open enrollment. Dates for open enrollment are May 1 through May 15, 2017. Enrollment guides will arrive in your home mail
this month.
This week we will be highlighting Flexible Spending Accounts (FSA)
What is an FSA? FSA’s provide an opportunity to put pre-tax dollars aside in anticipation of certain medical expenses and dependent care. You are in control of how much you contribute each pay (up to the maximum set by the IRS). Once enrolled, you are given a debit card to pay for qualifying items such as co-pays, deductibles, prescriptions, eyeglasses, acupuncture, and more! (For a complete listing, visit the IRS website, http://www.irs.gov/publications/p502). You may also submit a claim form to be reimbursed for the eligible expenses when the debit card is not an applicable form of payment.
There are three FSA options:
- Health Care Flexible Spending Account: Pre-tax dollars are put into an account for you to cover qualifying medical expenses for yourself, spouse and children up to age 27. You do not have to be covered under an UMMS plan to participate and may contribute up to $2,550 per year.
- Dependent Care Flexible Spending Account: Allows reimbursement of dependent care expenses such as child care, summer day camp, or elder care. You and your spouse (if applicable) must be employed full time or spouse must be a full time student. You can allocate up to $5,000 each plan year.
- Limited–Purpose Spending Account: Coordinates with the high-deductible health plan (Bronze) and only allows reimbursement for vision, dental and preventive expenses. You can contribute up to $2,550 each plan year.
Two things you need to know about FSAs:
- You must elect this benefit every plan year (it does not carry over automatically.)
- You must use all of the money in your FSA by the end of the plan year or you lose it. The IRS does not allow funds to roll over to the next plan year. Plan carefully!!
Bronze Plan members, take note: We also have a Healthcare Spending Account available that goes with the Bronze plan, please contact HR or log onto HR Connections for more information.