FLEXIBLE SPENDING ACCOUNT
Our Flexible Spending Account (FSA) allows you to set aside pre-tax dollars for eligible healthcare expenses throughout the year.
Flexible Spending Account Overview
A great way to save on your health care and dependent care expenses is by taking advantage of the Flexible Spending Accounts (FSAs), including the:
• Health Care FSA • Dependent Care FSA
The Health Care FSA gives you a smart way to save on eligible expenses not covered by the new program by allowing you to set aside money on a pre-tax basis to pay for these expenses. Some examples of eligible expenses include:
• Deductibles for medical and dental plans • Physician’s fees • Laboratory fees • Prescription glasses or contacts • Prescription drug co-pays • Some types of medical equipment or supplies • Surgical or diagnostic services
NOTE: If you are participating in the HSA Qualified Plan, you are only eligible to participate in a limited purpose Health Care FSA. This means that you will only be able to submit Dental and Vision expenses.
HOW THE FSA WORKS
An FSA allows you to set aside up to $3,400 on a pre-tax basis that can be used for non-reimbursed health care expenses for you and your qualified dependents throughout the year. Here’s how it works:
First, decide how much you want to contribute. A regular amount will be automatically deducted from each paycheck for the entire year. SIHO makes the elected funds available at the beginning of the plan year and funds are reimbursed to you as expenses are submitted up to the amount elected for the year.
Then, when you or a qualified dependent have eligible expenses not covered by the benefits program OR any or all health benefits are exhausted, your FSA administrator reimburses you from your flexible spending account. Your expenses are reimbursed from your account, and you avoid the taxes you would otherwise pay on that money.
The Dependent Care FSA works like the Health Care FSA. It allows you to set aside up to $3,750 each year on a pre-tax basis for reimbursable day care expenses, such as fees for a licensed day care center or adult day care, for eligible dependents ($7,500 maximum for the head of household or a joint tax return and $3,750 maximum for married, separately filed tax returns).
IMPORTANT FSA FACTS & CLAIMS
There are restrictions imposed by the federal government that you need to keep in mind before participating in an FSA:
- You cannot stop, start, or change the amount of money you contribute during the year unless you experience a Qualified Life Event change. If this occurs, then your change must be consistent with your qualified life event change. Under the Dependent Care FSA, a Cost of Coverage change is eligible for contribution adjustments.
- You may use the money in your account to pay for expenses you or your dependents incur only during the same calendar year. Any money remaining in your account, after you have applied for reimbursement for the year, is forfeited and cannot be returned for any reason.
- Your Health Care and Dependent Care FSAs are separate. You cannot transfer money between the two accounts.
- When submitting claims, you must attach an itemized receipt (cancelled checks do not qualify as a valid receipt). An EOB, or Explanation of Benefits, can be submitted for reimbursement.
FSA VENDOR INFORMATION
SIHO Employees utilize Employee Benefits Corporation (EBC) as our Flex vendor. Any new Flex participants and current participants with expiring cards will be issued a debit card prior to 1/1.
EBC administers all FSA activity, including reimbursements, account management, and debit card processing, ensuring employees have convenient access to their pre-tax funds.
