A Flexible Spending Account is an account that allows you to use 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. All FSA contributions are pre-tax, which means you save money by not paying taxes on the amounts you set aside to pay for eligible healthcare and dependent care expenses.
There are hundreds of eligible expenses for your FSA funds, including prescriptions, over-the-counter medications/items (eligible through 12/31/2010), doctor office co-pays, health insurance deductibles and coinsurance for you, your spouse or tax dependents.
Changes for 2010-2011
• ConnectYourCare will become the new FSA Administrator effective July 1, 2010.
• Payment (Debit) Card: You will receive a payment card, sometimes called an FSA debit card, to quickly and easily access Healthcare FSA funds. Since there is no Personal Identification Number (PIN) associated with the card, you use it like you would a credit card, and funds are deducted directly from your account. In many cases, card transactions are automatically approved. However, you may be required to submit itemized receipts for some transactions. Be sure to always keep all documentation of your payments.
• Online Claims Submission: If you do not use your debit card, you have the option to quickly and easily create a secure claim online. Once you submit your receipts, ConnectYourCare will send your reimbursement within a few days. There is no minimum amount for reimbursement.
• 24/7 Customer Service. If you have a question, the ConnectYourCare dedicated customer service center is available 24 hours a day, seven days a week.
There are two types of FSAs available:
• Healthcare Account: You may contribute between $120 and $3,000 a year to reimburse yourself for eligible out-of-pocket healthcare expenses, including deductibles, copays or coinsurance not reimbursed by any medical, dental, vision or prescription plans for you, your spouse or your tax dependents.
• Dependent Care Account: You may contribute between $120 and $5,000 a year, or up to $2,500 a year if married and filing separately, to reimburse yourself for eligible dependent care expenses incurred so you and your spouse, if married, can work, look for work, or your spouse can attend school full-time. In addition to day care, the account may also cover some before- and after-school care expenses, summer day camp and pre-school tuition costs.