Presentation on theme: "FSAFEDS THE FEDERAL FLEXIBLE SPENDING ACCOUNT PROGRAM MORE MONEY IN YOUR POCKET!"— Presentation transcript:
FSAFEDS THE FEDERAL FLEXIBLE SPENDING ACCOUNT PROGRAM MORE MONEY IN YOUR POCKET!
Program Overview THATS MORE MONEY IN MY POCKET!
October 31, What is a Flexible Spending Account? An account where you contribute money from salary BEFORE taxes are withheld A way to save money on day care and health care services and items for you and your family A Fed-friendly tax break Key Benefit: More Money in Your Pocket!
October 31, How does FSAFEDS work? 1.Estimate your expenses and determine your annual contribution from salary, pre-tax 2.Enroll in a Health Care, Limited Expense Health Care or Dependent Care FSA 3.Incur eligible expenses 4.Submit your claims* 5.Get reimbursed FAST *A few exceptions, discussed later
October 31, How do you save money with FSAFEDS? Your contributions to FSAFEDS are deducted from your salary BEFORE taxes…just like Thrift Savings Plan contributions. Youre going to have these expenses, so why pay more in taxes than you have to? The average person will save about 30% each year A Fed earning $50,000 and contributing $2,000 to an FSAFEDS account will have around $600 more to spend PUTS MORE MONEY IN YOUR POCKET!
October 31, Savings Illustration
October 31, Three types of FSAs 1. Health Care FSA (HCFSA) - For eligible health care expenses not paid by FEHB, FEDVIP or any other insurance $250 minimum election per year $2,500 maximum election per year – this IS NOT a household limit, your spouse may have a separate account
October 31, Three types of FSAs (cont.) 2. Limited Expense Health Care FSA* (LEX HCFSA) - For those enrolled in or covered by a High Deductible Health Plan (HDHP) with a Health Savings Account (HSA) *Limited to only eligible dental and vision expenses not paid by FEHB, FEDVIP or any other insurance $250 minimum election per year $2,500 maximum election per year – this IS NOT a household limit, your spouse may have a separate account
October 31, Three types of FSAs (cont.) 3. Dependent Care FSA (DCFSA) - For eligible non-medical day care expenses (childcare, eldercare) so you (or your spouse) can work, look for work or attend school full-time. $250 minimum election per year $5,000 maximum election per year – this IS a household limit and includes any child care subsidy amounts and other FSA dependent care accounts Note: You (and spouse) must have earned income during the year, even if looking for a job.
October 31, Eligibility for FSAFEDS Must be employed by an Executive Branch Agency or another organization offering FSAFEDS
October 31, Eligibility for FSAFEDS (cont.) HCFSA Must be FEHB eligible Participants do not have to be enrolled in FEHB
October 31, Eligibility for FSAFEDS (cont.) LEX HCFSA Must be enrolled in or covered by an HDHP with an HSA under the FEHB
October 31, Eligibility for FSAFEDS (cont.) DCFSA Do not need to be FEHB-eligible or enrolled in FEHB Ineligible: intermittent employees expected to work fewer than 180 days/year
October 31, Administrative Fees All agencies pay the fees for their employees Employees do not pay fees to participate PUTS EVEN MORE MONEY IN YOUR POCKET!
Eligible Expenses USING FSAFEDS IS EASY AS PIE
October 31, HCFSA Eligible Expenses Health care expenses not paid by FEHB or FEDVIP or any other insurance Expenses incurred by you and/or your dependents are eligible
October 31, Typical HCFSA Expenses Co-payments, co-insurance and deductibles (but not insurance premiums) Chiropractic care Contact lenses, solutions, cleaners and cases Dental care (Including crowns, endodontic services, implants, oral surgery, periodontal services, sealants, etc.) Diabetic supplies First aid kits
October 31, Typical HCFSA Expenses (cont.) Flu shots Foot care (e.g., athletes foot products, arch supports, callous removers, etc.) Hearing aids (including batteries) Home diagnostic test and kits (e.g., cholesterol, colorectal screenings, etc.) Home medical equipment (wheelchairs *, oxygen, respirators, etc.) Orthodontia * With Letter of Medical Necessity
October 31, Typical HCFSA Expenses (cont.) Over-the-counter non-medical items, such as, but not limited to band aids, braces & supports and reading glasses Over-the-counter drugs and medicines WITH a prescription – insulin is the exception Physical therapy Prescription drugs Prosthetics Psychiatric services and care
October 31, Typical HCFSA Expenses (cont.) Substance abuse treatment Transportation expenses related to medical care Vision care (including eyeglasses, prescription sunglasses, refractions and vision correction procedures) For a complete list of eligible expenses, go to and click on Eligible Expenses Juke Box under the Quick Links drop-down menu
October 31, Ineligible HCFSA Expenses Day care expenses Cosmetic procedures (unless required to restore appearance or function due to disease of illness) Expenses you claim on your tax income return Expenses reimbursed by other sources, such as insurance Fitness programs (unless medically necessary*) *With Letter of Medical Necessity
October 31, Ineligible HCFSA Expenses (cont.) Hair transplants Insurance premiums, including COBRA, Tricare, dental, vision and long term care insurance Over-the-counter drugs and medicines (except insulin) unless prescribed by a physician Physician retainer fees including boutique and concierge practice membership fees Weight loss programs and drugs for general well-being Expenses incurred after March 15, 2015
October 31, LEX HCFSA Eligible Expenses ONLY Dental and Vision expenses Not paid by FEHB, FEDVIP or other insurance Expenses incurred by you and/or your dependents including: Dental – cleanings, fillings, crowns, orthodontics and over-the- counter items such as denture care products, but not toothpaste Vision – eyeglasses, refractions, vision correction procedures, contact lenses, solutions, cleaners and cases
October 31, DCFSA Eligible Expenses Day care expenses that let you (and your spouse): Work Look for work Attend school full-time For children under age 13 and any dependent who is mentally or physically incapable of self-care Services cannot be provided by your dependent If you or a spouse have looked for work, you must have found a job and have earned income at some point during the year. If a spouse is a full-time student or incapacitated, he or she does not to have any earned income during the year.
October 31, Typical DCFSA Expenses Child care at a daycare center, day camp, sports camp, nursery school or by a private sitter Late pick-up fees Before and after-school care (but not tuition) Adult day care expenses Au Pair placement fees and weekly stipend Expenses for a housekeeper who also cares for an eligible dependent
October 31, Ineligible DCFSA Expenses Health care expenses Education or tuition fees Late payment fees Overnight camps Sports lessons, field trips, clothing Transportation to/from care provider Expenses incurred after March 15, 2015
October 31, Benefit Period Employees must enroll each Open Season to participate in the following benefit period Enrollments do not carry over year-to-year Benefit Period = January 1 through March 15 (of the next year) Salary contribution deducted equally among pay dates during the calendar year (January 1 – December 31)
October 31, Online Calculator Interactive savings calculator available online at Enter salary and tax information Enter FSAFEDS contribution amount Enter estimated expenses Calculate potential annual tax savings
October 31, Payroll Deduction Process Employee identifies employing agency during enrollment FSAFEDS submits enrollment information to BENEFEDS BENEFEDS coordinates payroll deductions with your payroll provider BENEFEDS provides FSAFEDS with confirmed allotment information. FSAFEDS updates participant accounts.
October 31, Availability of Funds DCFSA: only amount of current account balance is available for claim reimbursement HCFSA & LEX HCFSA: total annual election is available once agency information is confirmed
October 31, Use-or-Lose Rule You must forfeit money unspent at the end of the Benefit Period (March 15 th ) IRS Rule (Section 125 of IRS Code) No exceptions You must file claims by April 30th following the end of the Benefit Period Plan carefully when making elections
October 31, Extra 2 ½ Months If you enroll during Open Season, you have from January 1 to March 15 of the next year to incur eligible expenses 14 ½ months to spend your annual election You forfeit any FSA money not spent on eligible expenses by March 15, 2015 You have until April 30, 2015 to file claims
October 31, Tracking Account Balances Secure online account access via My Account Summary Call toll-free FSAFEDS ( ) TTY line: Reimbursement Statement sent when claims processed Account Statements sent in January, March and October
Federal Benefits Open Season Enroll November 11 – December 9, 2013 Enroll early to avoid the last minute rush! THATS MORE MONEY IN MY POCKET!
October 31, Enroll Online Go to Follow the simple enrollment process Receive personalized confirmation Will appear at the end of the enrollment process Will automatically be ed to you if you provide an address during enrollment Will be available via My Account Summary
October 31, Enroll By Telephone FSAFEDS Benefits Counselors Toll-free FSAFEDS ( ) TTY line: Monday – Friday, 9:00 a.m. – 9:00 p.m. ET
October 31, Enrollment Requirements Must meet eligibility requirements for FSAFEDS participation Must agree to Electronic Funds Transfer (EFT) Fast reimbursement
October 31, Enrollment Options – HCFSA Only Paperless Reimbursement (PR) Available with many (not all) FEHB plans Claim filed with FEHB plan FEHB plan forwards out-of-pocket expenses directly to FSAFEDS Often no out-of-pocket payment Payment made directly to you from FSAFEDS account via Electronic Funds Transfer Some dental and vision claims require manual submission – please check the website
October 31, PR - Participating Plans Aetna Medical Plan APWU Health Plan Blue Cross and Blue Shield Service Benefit Plan Compass Rose Health Plan (formerly ABP) Foreign Service Benefit Plan GEHA Humana Mail Handlers Benefit Plan
October 31, PR - Participating Plans (cont.) M.D. Individual Practice Association Inc. NALC Health Benefit Plan SAMBA Health Benefit Plan UnitedHealthcare Insurance Co., Inc.
October 31, PR - Participating Plans (cont.) FEDVIP Plans Aetna (Dental) GEHA (Dental) United Concordia (Dental) FEP Blue Vision (Vision) Vision Service Plan (Vision)
October 31, New Employee Enrollment New employees have 60 days to enroll Must enroll before October 1 Otherwise, must wait for next Federal Benefits Open Season
October 31, Enrollment Changes May change election(s) at any time during Open Season Qualifying Life Event (QLE) required outside Open Season
October 31, Qualifying Life Event QLEs defined by IRS: Change in marital status Change in number of dependents Change in dependents eligibility (e.g., child turning age 13) Change in cost or coverage (DCFSA only) (e.g., day care fee increase) Change in employment or residence Change in military duty status
October 31, Qualifying Life Event (cont.) Requested change must be consistent with event that prompts change For example: Increase DCFSA or HCFSA election after birth or adoption of child Decrease DCFSA election if spouse stays home with child
October 31, Qualifying Life Event (cont.) Must notify FSAFEDS of QLE from 31 days before to 60 days after event To submit a request online, login to My Account Summary and access the Qualifying Life Event section. Follow the simple instructions to submit your request online If you prefer to print a QLE form and save a copy for your records, the QLE form is still available under Forms at
October 31, Qualifying Life Event (cont.) Fax or mail your form to FSAFEDS You may submit your request either online or by form, but you may not do BOTH FSAFEDS will verify that event was a QLE and process requested election change QLE for birth/adoption of child is retroactive to date of event; all others are prospective Can only reduce elections to the amount already on deposit or reimbursed
October 31, Separation/Retirement No further allotments DCFSA balance, at separation, is available for eligible expenses incurred until end of Benefit Period or until balance is depleted No refund available HCFSA terminates at separation Only expenses incurred before separation are eligible for reimbursement No refund available
October 31, Leave Without Pay (LWOP) Agencies will not withhold allotments during non-pay status Options: Pre-pay elections through accelerated allotments Freeze account until return to pay status (Allotments recalculated across remaining pay dates) If LWOP is due to a QLE, participant can cancel or reduce annual election, if consistent with the QLE
Claims & Reimbursement USING FSAFEDS IS EASY AS PIE
October 31, Claim Forms Available online Request by telephone or FSAFEDS ( ) TTY line: FAX or mail claim to FSAFEDS (toll-free, inside U.S. only) or
October 31, Required Documentation: HCFSA and LEX HCFSA Completed and signed claim form AND Explanation of Benefits form (EOB) From FEHB or FEDVIP or other insurance Must indicate type of service, date(s) of service, amount owed
October 31, Required Documentation: HCFSA and LEX HCFSA (cont.) OR Detailed receipts Must indicate type of service, date(s) of service, amount paid None, with Paperless Reimbursement
October 31, Required Documentation: DCFSA Completed and signed claim form AND Copies of bill or signed receipt OR Have provider complete Part III of claim form Include providers tax ID or SSN on all claims
October 31, Online Claim Submission (NEW!) Go to Select Online Claim Submission Enter and save claim information as directed Upload appropriate claim documentation as a.PDF,.JPG or.TIF file Check the box and select the I Certify button to submit the claim
October 31, Reimbursement Reminders Expenses are incurred on date of service, not when expense is paid (Orthodontia is an exception) Expense must be incurred AFTER effective date of enrollment AND during the Benefit Period All claims must be postmarked or faxed by April 30, following end of Benefit Period Unclaimed funds are forfeited and used to offset administrative costs of the FSAFEDS program
October 31, Contact Us FSAFEDS ( ) TTY line: Benefits Counselors are available Monday through Friday, 9:00 a.m. to 9:00 p.m., ET