Health Care FSA
Although your health plans typically cover most of your health care expenses, there are still some costs that come out of your pocket. Health Care FSA is a voluntary program designed by the Internal Revenue Services (IRS) to allow you to set aside a portion of your regular paycheck, before applicable payroll taxes are withheld, to pay for eligible health care expenses for you and your dependents.
All District employees are eligible to participate even if you are not eligible for health care coverage under any District-sponsored plan. Only health care expenses incurred by you and the dependents you claim on your federal income tax return can be reimbursed through the Health Care FSA.
You can enroll in this plan during the Annual Benefits Open Enrollment in November for the following plan year that runs from January - December. The election you make in one plan year does not automatically carry-over to the next plan year so it is important to re-enroll during each Open Enrollment period.
Once you are enrolled, mid-year changes can only be made if you experience a qualifying Major Life Event.
To request a mid-year change, fill out the Flexible Spending Account Request for Change Form and submit according to instructions. Any approved changes will be reflected on your paycheck.
If you are a new employee, you can enroll by filling out the FSA Enrollment form.
Before you enroll, it is helpful to estimate how much you spend each plan year (January – December) on health care expenses. Based on this estimate, you can decide how much to set aside out of you paycheck when you enroll.
You may set aside up to $5,000 per year per household. Your contributions will be credited to your Health Care FSA through automatic payroll deductions taken in equal amounts from each paycheck throughout the year. The minimum annual contribution is $120.
As you incur and pay for eligible health care expenses, you may file for reimbursement. There is no need to wait until the money is in your Health Care FSA to file for reimbursement. As long as the total claims for the year have not exceeded your annual election, your eligible claim will be processed.
To file a claim for reimbursement, complete the UniAccount FSA Claim Form and submit according to instructions. UniAccount is the District’s FSA’s administrator.
Proof of your expenses, such as a receipt or an Explanation of Benefits statement, and in the case of dependent care expenses, the provider’s taxpayer identification or social security number, is required. If your receipt is smaller than 8.5” x11” please tape it to an 8.5” x 11” sheet of paper. You will be reimbursed once a month or when your expenses reach $50, whichever is sooner.
Claims Filing Deadline:
All claims and requests for reimbursements must be received by UniAccount on or before June 15th following the end of the plan year (January – December). Be sure to indicate whether your claims incurred between January 1st – March 15th are to be applied to the unused contributions for the current plan year or to your contributions for the next plan year. Employees who separate, resign, or retire before the end of the plan year have 90 days following the date of separation/termination to submit claims for reimbursement.
- Health Care FSA plan incorporates a grace period at the end of the plan year. The grace period is an additional 2 ½ months (January 1 through March 15) during which you can incur eligible expenses that can be reimbursed from your unused prior year Health Care FSA account balance. The grace period extends the amount of time you have to incur eligible medical expenses helps you avoid forfeiting any of the funds you have already deposited in your Health Care FSA account.
- You must have a remaining balance as of December 31. If you do not have a balance, the grace period will have no affect on your account. The grace period automatically applies if you are covered by the Health Care FSA on the last day of the plan year. If you have a balance in your Health Care FSA account as of the last day of the plan year (December 31) and you incur eligible expenses during the grace period (January 1 thru March 15) simply submit those eligible expenses for reimbursement.
- It is important to plan carefully as any unused portion after the extension period, March 15th of the year following the current plan year, will be forfeited (Use It Or Lose It Rule).
- Contributions made to the Health Care FSA cannot be transferred to the Dependent Care FSA or vice versa.
- Participation in this program may slightly reduce your future Social Security benefits because it reduces your taxable income.
- The IRS offers tax deductions for those whose health care expenses exceed 7.5% of their adjusted gross income. For those who exceed this threshold, ask your tax advisor which tax-reducing method is better for you and your family, tax deduction or Health Care FSA.
How do I know how much I have remaining in my FSA?
Each reimbursement check contains a stub that shows your year-to-date account balance and annual goal amount. You will also receive quarterly statements showing your account activity.
What if I stop getting a paycheck or miss a deduction?
If you skip one or more paychecks due to an authorized leave, your FSA deductions will be put on hold. When you return to work, your payroll deductions for the FSA will resume, and the deduction amount will increase to compensate for the missed contributions. You may only file claims for care that was provided while you were actively contributing to your account.
How do I continue my coverage if I stop working for the District?
If you stop working for the District, you can elect to continue your Health Care FSA under the provisions of COBRA until the end of the plan year. Contributions will be made on an after-tax basis for COBRA participants. If you choose to continue coverage under COBRA, only expenses incurred before your termination date will be eligible for reimbursement. You have 90 days following your date of termination to submit claims for reimbursement from the Health Care FSA.
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