What is a Health Care Flexible Spending Account (HCFSA)?
The Health Care Flexible Spending Account (HCFSA) is a pre-tax savings account to be used for expenses not paid for by your health care insurance for you and your eligible dependents. Such expenses include coinsurance and deductible amounts, office visit and prescription drug co- pays, orthodontia, chiropractic care, laser eye surgery and eye glasses/contact lenses. The program carries a $2,600 annual plan maximum as well as a “Use It or Lose It” provision, where all claims must be incurred by December 31 of the plan year.
Keep in mind: If you do not spend all of the money in your Health Care FSA, you can roll over up to $500 into the next plan year, unless you elect an HSA for the next plan year. The rollover amount will not count toward your maximum contribution for the following plan year, in addition to your annual contribution. You must have an active account at the end of the year in order to be eligible for the rollover.
You can set aside money to pay expenses not covered by your medical insurance through two types of accounts:
HCFSA - To be used with traditional insurance plans. Use it to pay for things like coinsurance, prescriptions and medical equipment.
Limited Health FSA – For when you have both a High Deductible Health Plan (HDHP) along with a Health Savings Account (HSA). The Limited FSA is available for dental and vision expenses only.
How Much You Can Contribute
The minimum contribution amount is $120.00 and the maximum contribution amount is $2,600.00 on an annual basis. ONLY out-of-pocket contributions can be accepted into this account.
Excess Flex Credits will be directed to the Health Reimbursement Account (HRA) for employees covered under an eligible medical plan.
The combined limit between a HCFSA and a Health Reimbursement Account (HRA) is $5,000. You cannot have more than $5,000 between the two accounts.
Participation in a HCFSA during a Leave of Absence
Your contributions will automatically continue during a Leave of Absence period as long as you continue to receive pay and/or your excess Flex Credits are directed to this account.
Any missed contributions will be processed upon return from leave.
What is a Dependent Care Flexible Spending Account (DCFSA)?
Dependent Care FSA lets you use pretax dollars to pay for eligible expenses related to care for your child, disabled spouse, elderly parent, or other dependents that may be physically or mentally incapable of self-care, so you can work.
How Much You Can Contribute
The minimum amount is $120.00 and the maximum amount is $5,000.00 that you can contribute in an annual basis. Please note: married couples have a combined $5,000 limit, even if each has access to a separate FSA through his or her employer.
Unlike the HCFSA, with DCFSAs you can be reimbursed only for expenses that fall within your current account balance, so you may have to wait until the account balance builds to sufficiently cover a large claim early in the year.
Participation in a DCFSA during a Leave of Absence
Your contributions will automatically continue during a Leave of Absence period as long as you continue to receive pay and/or your excess Flex Credits are directed to this account. Although, you will continue to contribute to your DCFSA during a leave of absence, dependent care expenses that you incur during the leave will not be eligible for reimbursement due to IRS rules.
Flexible Spending Account Description
The County’s Cafeteria Plan Document and Summary provides a detailed description of the FSA Plan, and is intended to provide you with a general understanding of the Plan.
ASIFLEX offers customer support as well as easy-to-use online tools to help you make the most of your FSA. Participants can use the ASIFLEX website to access interactive claims, online calculators and view account balances and reimbursement histories.
Visit www.asiflex.com or call (800) 659-3035 for more information.