A Flexible Spending Account (FSA) is an account that allows you to set aside pre-tax dollars to pay for qualified healthcare or dependent day care expenses. You choose how much money you want to contribute to an FSA at the beginning of each plan year and can access these funds throughout the year. For more information on qualified expenses, please see the following list from P&A Group.
Flexible Spending Accounts are provided to the State by P&A Group. There are two types of flexible spending accounts: Health Care Spending Account and the Dependent Care Spending Account. While other State benefits roll over from one benefits period to another, if the employee takes no action, Flexible Spending Accounts will not roll over into the next benefits period. An employee must take action to renew a Flexible Spending Account for it to be active for the new plan year. Deductions are based on 24 pay periods.
An employee already enrolled in an FSA for the current period who wishes to continue the spending account for the 2018 plan year must follow the enrollment instructions by either using the IVR or submitting an enrollment form. The minimum contribution is $5.00 per pay ($120 per plan year) in both the healthcare FSA and dependent care FSA.
Employees wanting to contribute the maximum to each account should apply the following:
Health Care Account: contribute $108.33 per pay
Annual Maximum = $2,600
24 pays x $108.33 per pay = $2,599.92
Dependent Care Account: contribute $208.33 per pay
Annual Maximum (per household) = $5,000
24 pays x $208.33 per pay = $4,999.92
Grace Period and Claims Submission Deadline: For the Health Care Spending accounts, you have until March 15, 2019 to incur eligible expenses. Claims for expenses incurred between January 1, 2018 and March 15, 2019 must be submitted to P&A Group by April 15, 2019.
For the Dependent Care account, expenses must be incurred between January 1, 2018 and December 31, 2018. There is no grace period to incur expenses. Claims must be filed by April 15, 2019. Remember, even though you have until April 15, 2019 to submit the claim, the service dates must be during the calendar year of 2019.
Amounts not claimed by the April 15, 2019 due date, are forfeited to the State (in other words, “use it or lose it”).
There will NOT be a correction period this year. Therefore, it is important to review your plan coverage and submit the open enrollment changes by 12:00 p.m. on the November 15, 2017.