With a Health FSA (also know as a Medical Expense Reimbursement account), you can set aside a portion of your pay on a pre-tax basis for you and your eligible dependents. You can then be reimbursed for qualified out-of-pocket medical expenses such as co-pays, deductibles and prescriptions, dental, eyeglasses, and many more. View a list of eligible expenses to find out if your purchase qualifies under your Health FSA.
Substantial Tax Savings
Since a Health FSA reimburses you with money deducted pre-tax, you save 30%-40% on your dollar (depending on your tax bracket). For example, to take home $400 of post-tax money you would need to earn about $520. But, by using a Health FSA account, you only need to make $400.
Deciding How Much to Contribute
First, you need to determine how much you plan on spending in the upcoming plan year on eligible expenses. Your entire annual election will be available at the beginning of your plan year, enabling you to be reimbursed for purchases right away, allowing you to budget for large expenses over the entire year. This is known as the Uniform Coverage Rule. However, it’s important to be conservative when estimating how much to contribute to your Health FSA, as you will forfeit any unused funds at the end of the plan year — this is known as the “use or lose ” rule.
Health FSA Carry Forward Option
Your employer may choose to add the Health FSA carry forward option to your plan, a provision that allows up to a maximum of $500 of unused Health FSA funds to roll over into the next plan year. Adoption of this provision is determined by your employer. Please refer to your plan documents and/or your employer for more information.
Your employer may choose to add the Grace Period to your FSA Plan. The Grace Period gives you two and a half months after the end of the plan year to incur eligible expenses, as long as you are actively enrolled as of the last day of the plan year.
Please note: your employer may only add either the grace period provision or the Health FSA carry forward provision to your Health Flexible Spending Account plan. Both provisions cannot be used for the Health FSA per IRS regulations.
How Reimbursement Works
- Use your Benefits Card as a debit card purchase wherever MasterCard® is accepted. The money is automatically transferred from your Health FSA account to the merchant.
- QuikClaim Mobile Website - Submit a claim and supporting documentation of your eligible expense directly from your smartphone. Log into your account on your mobile device.
- Online Claim Upload- After making a purchase, log in to your My Benefits account and click Upload Claim/Documentation under the Member Tools tab.
- Fax- submit a claim form via toll-free fax to (877) 855-7105.
- Mail- mail a claim form to P&A Group, 17 Court Street Suite 500, Buffalo, NY 14202.
To receive reimbursement faster, sign up for direct deposit to have your money directly deposited into your designated checking or savings account. You can enroll in direct deposit by logging into your account and choosing direct deposit.