FSAFEDS

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FSAFEDS

• THE FEDERAL FLEXIBLE SPENDING ACCOUNT PROGRAM

MORE MONEY IN YOUR POCKET!
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Program Overview
THATS MORE MONEY IN MY POCKET!
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What is a FlexibleSpending Account?

• An account where you contribute money from salary
  BEFORE taxes are withheld
• A way to save money on day care and health care
  services and items for you and your family
• A Fed-friendly tax break
• Key Benefit More Money in Your Pocket!

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How does FSAFEDS work?

• Estimate your expenses and determine your annual
  contribution from salary, pre-tax
• Enroll in a Health Care, Limited Expense Health
  Care or Dependent Care FSA
• Incur eligible expenses
• Submit your claims
• Get reimbursed FAST
• A few exceptions, discussed later

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How do you save money with FSAFEDS?

• Your contributions to FSAFEDS are deducted from
  your salary BEFORE taxesjust like Thrift Savings
  Plan contributions.
• Youre going to have these expenses, so why pay
  more in taxes than you have to?
• The average person will save about 30 each year
• A Fed earning 50,000 and contributing 2,000 to
  an FSAFEDS account will have around 600 more to
  spend
• PUTS IN MORE MONEY IN YOUR POCKET!

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Savings Illustration
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Three types of FSAs

• 1. Health Care FSA (HCFSA)
• For eligible health care expenses not paid by
  FEHB, FEDVIP or any other insurance

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Three types of FSAs (cont.)

• 2. Limited Expense Health Care FSA (LEX HCFSA)
• For those enrolled in or covered by a High
  Deductible Health Plan (HDHP) with a Health
  Savings Account (HSA)
• Limited to only eligible dental and vision
  expenses not paid by FEHB, FEDVIP or any other
  insurance

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Three types of FSAs (cont.)

• 3. Dependent Care FSA (DCFSA)
• For eligible non-medical day care expenses
  (childcare, eldercare) so you (or your spouse)
  can work, look for work or attend school
  full-time.
• Note You (and spouse) must have earned income
  during the year, even if looking for a job.

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Eligibility for FSAFEDS

• Must be employed by an Executive Branch Agency or
  another organization offering FSAFEDS

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Eligibility for FSAFEDS (cont.)

• HCFSA
• Must be FEHB eligible
• Participants do not have to be enrolled in FEHB

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Eligibility for FSAFEDS (cont.)

• LEX HCFSA
• Must be enrolled in or covered by an HDHP with an
  HSA under the FEHB

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Eligibility for FSAFEDS (cont.)

• DCFSA
• Do not need to be FEHB-eligible or enrolled in
  FEHB
• Ineligible intermittent employees expected to
  work fewer than 180 days/year

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Administrative Fees

• All agencies pay the fees for their employees
• Employees do not pay fees to participate
• PUTS EVEN MORE MONEY IN YOUR POCKET!

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Eligible Expenses
USING FSAFEDS IS EASY AS PIE
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HCFSA Eligible Expenses

• Health care expenses not paid by FEHB or FEDVIP
  or any other insurance
• Expenses incurred by you and/or your
• dependents are eligible

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Typical HCFSA Expenses

• Co-payments, co-insurance and deductibles (but
  not insurance premiums)
• Chiropractic care
• Contact lenses, solutions, cleaners and cases
• Dental care (Including crowns, endodontic
  services, implants, oral surgery, periodontal
  services, sealants, etc.)
• Diabetic supplies
• First aid kits

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Typical HCFSA Expenses (cont.)

• Flu shots
• Foot care (e.g., athletes foot products, arch
  supports, callous removers, etc.)
• Hearing aids (including batteries)
• Home diagnostic test and kits (e.g., cholesterol,
  colorectal screenings, etc.)
• Home medical equipment (wheelchairs , oxygen,
  respirators, etc.)
• Orthodontia
• With Letter of Medical Necessity

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Typical HCFSA Expenses (cont.)

• Over-the-counter medical items, such as, but not
  limited to band aids, braces supports and
  reading glasses
• Over-the-counter drugs and medicines WITH a
  prescription insulin is the exception
• Physical therapy
• Prescription drugs
• Prosthetics
• Psychiatric services and care

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Typical HCFSA Expenses (cont.)

• Substance abuse treatment
• Transportation expenses related to medical care
• Vision care (including eyeglasses, prescription
  sunglasses, refractions and vision correction
  procedures)
• For a complete list of eligible expenses, go to
  www.FSAFEDS.com and click on Eligible Expenses
  Juke Box under the Quick Links drop-down menu

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Ineligible HCFSA Expenses

• Day care expenses
• Cosmetic procedures (unless required to restore
  appearance or function due to disease of illness)
• Expenses you claim on your tax income return
• Expenses reimbursed by other sources, such as
  insurance
• Fitness programs (unless medically necessary)
• With Letter of Medical Necessity

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Ineligible HCFSA Expenses (cont.)

• Hair transplants
• Insurance premiums, including COBRA, Tricare,
  dental, vision and long term care insurance
• Over-the-counter drugs and medicines (except
  insulin) unless prescribed by a physician
• Physician retainer fees including boutique and
  concierge practice membership fees
• Weight loss programs and drugs for general
  well-being
• Expenses incurred after March 15, 2013

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LEX HCFSA Eligible Expenses

• ONLY Dental and Vision expenses
• Not paid by FEHB, FEDVIP or other insurance
• Expenses incurred by you and/or your dependents
  including
• Dental cleanings, fillings, crowns,
  orthodontics and over-the-counter items such as
  denture care products, but not toothpaste
• Vision eyeglasses, refractions, vision
  correction procedures, contact lenses, solutions,
  cleaners and cases

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DCFSA Eligible Expenses

• Day care expenses that let you (and your spouse)
• Work
• Look for work
• Attend school full-time
• For children under age 13 and any dependent who
  is mentally or physically incapable of self-care
• Services cannot be provided by your dependent
• You (and your spouse) must have earned income
  during the year

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Typical DCFSA Expenses

• Child care at a daycare center, day camp, sports
  camp, nursery school or by a private sitter
• Late pick-up fees
• Before and after-school care (but not tuition)
• Adult day care expenses
• Au Pair placement fees and weekly stipend
• Expenses for a housekeeper who also cares for an
  eligible dependent

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Ineligible DCFSA Expenses

• Health care expenses
• Education or tuition fees
• Late payment fees
• Overnight camps
• Sports lessons, field trips, clothing
• Transportation to/from care provider
• Expenses incurred after March 15, 2013

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Benefit Period

• Employees must enroll each Open Season to
  participate in the following benefit period
• Enrollments do not carry over year-to-year
• Benefit Period January 1 through March 15 (of
  the next year)
• Salary contribution deducted equally among pay
  dates during the calendar year (January 1
  December 31)

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Online Calculator

• Interactive savings calculator available online
  at www.FSAFEDS.com
• Enter salary and tax information
• Enter FSAFEDS contribution amount
• Enter estimated expenses
• Calculate potential annual tax savings

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Payroll Deduction Process

• Employee identifies employing agency during
  enrollment
• FSAFEDS submits enrollment information to
  BENEFEDS
• BENEFEDS coordinates payroll deductions with your
  payroll provider
• BENEFEDS provides FSAFEDS with confirmed
  allotment information. FSAFEDS updates
  participant accounts.

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Availability of Funds

• DCFSA only amount of current account balance is
  available for claim reimbursement
• HCFSA LEX HCFSA total annual election is
  available once agency information is confirmed

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Use-or-Lose Rule

• You must forfeit money unspent at the end of the
  Benefit Period (March 15th)
• IRS Rule (Section 125 of IRS Code)
• No exceptions
• You must file claims by April 30th following the
  end of the Benefit Period
• Plan carefully when making elections

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Extra 2 ½ Months

• If you enroll during Open Season, you have from
  January 1 to March 15 of the next year to incur
  eligible expenses
• 14 ½ months to spend your annual election
• You forfeit any FSA money not spent on eligible
  expenses by March 15, 2013
• You have until April 30, 2013 to file claims
  

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Tracking Account Balances

• Secure online account access via My Account
  Summary
• www.FSAFEDS.com
• Call toll-free
• 1-877-FSAFEDS (372-3337)
• TTY line 1-800-952-0450
• Reimbursement Statement sent when claims
  processed
• Account Statements sent in January, March and
  October

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Federal Benefits Open Season EnrollNovember 14
December 12 2011Enroll early to avoid the last
minute rush!
THATS MORE MONEY IN MY POCKET!
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Enroll Online

• Go to www.FSAFEDS.com
• Follow the simple enrollment process
• Receive personalized confirmation
• Will appear at the end of the enrollment process
• Will automatically be emailed to you if you
  provide an email address during enrollment
• Will be available via My Account Summary

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Enroll By Telephone

• FSAFEDS Benefits Counselors
• Toll-free 1-877-FSAFEDS (372-3337)
• TTY line 1-800-952-0450
• Monday Friday, 900 a.m. 900 p.m. ET

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Enrollment Requirements

• Must meet eligibility requirements for FSAFEDS
  participation
• Must agree to Electronic Funds Transfer (EFT)
• Fast reimbursement

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Enrollment Options HCFSA Only

• Paperless Reimbursement (PR)
• Available with many (not all) FEHB plans
• Claim filed with FEHB plan
• FEHB plan forwards out-of-pocket expenses
  directly to FSAFEDS
• Often no out-of-pocket payment
• Payment made directly to you from FSAFEDS account
  via Electronic Funds Transfer
• Some dental and vision claims require manual
  submission please check the website

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PR - Participating Plans

• Aetna Medical Plan
• APWU Health Plan
• Blue Cross and Blue Shield Service Benefit Plan
• Compass Rose Health Plan (formerly ABP)
• Foreign Service Benefit Plan
• GEHA
• Humana
• Mail Handlers Benefit Plan

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PR - Participating Plans (cont.)

• M.D. Individual Practice Association Inc.
• NALC Health Benefit Plan
• SAMBA Health Benefit Plan
• UnitedHealthcare Insurance Co., Inc.

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PR - Participating Plans (cont.)

• FEDVIP Plans
• Aetna (Dental)
• GEHA (Dental)
• MetLife (Dental)
• FEP Blue Vision (Vision) New for 2012
• Vision Service Plan (Vision)

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New Employee Enrollment

• New employees have 60 days to enroll
• Must enroll before October 1
• Otherwise, must wait for next Federal Benefits
  Open Season

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Enrollment Changes

• May change election(s) at any time during Open
  Season
• Qualifying Life Event (QLE) required outside
  Open Season

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Qualifying Life Event

• QLEs defined by IRS
• Change in marital status
• Change in number of dependents
• Change in dependents eligibility
• (e.g., child turning age 13)
• Change in cost or coverage (DCFSA only)
• (e.g., day care fee increase)
• Change in employment or residence
• Change in military duty status

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Qualifying Life Event (cont.)

• Requested change must be consistent with event
  that prompts change
• For example
• Increase DCFSA or HCFSA election after birth or
  adoption of child
• Decrease DCFSA election if spouse stays home with
  child

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Qualifying Life Event (cont.)

• Must notify FSAFEDS of QLE from 31 days before to
  60 days after event
  
• To submit a request online, login to My Account
  Summary and access the Qualifying Life Event
  section.
• Follow the simple instructions to submit your
  request online
• If you prefer to print a QLE form and save a copy
  for your records, the QLE form is still available
  under Forms at www.FSAFEDS.com

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Qualifying Life Event (cont.)

• Fax or mail your form to SHPS
• You may submit your request either online or by
  form, but you may not do BOTH
  
• FSAFEDS will verify that event was a QLE and
  process requested election change
• QLE for birth/adoption of child is retroactive to
  date of event all others are prospective
• Can only reduce elections to the amount already
  on deposit or reimbursed

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Separation/Retirement

• No further allotments
• DCFSA balance, at separation, is available for
  eligible expenses incurred until end of Benefit
  Period or until balance is depleted
• No refund available
• HCFSA terminates at separation
• Only expenses incurred before separation are
  eligible for reimbursement
• No refund available

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Leave Without Pay (LWOP)

• Agencies will not withhold allotments during
  non-pay status
• Options
• Pre-pay elections through accelerated allotments
• Freeze account until return to pay status
  (Allotments recalculated across remaining pay
  dates)
• If LWOP is due to a QLE, participant can cancel
  or reduce annual election, if consistent with the
  QLE

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Claims Reimbursement
USING FSAFEDS IS EASY AS PIE
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Claim Forms

• Available online
• www.FSAFEDS.com
• Request by telephone or email
• 1-877-FSAFEDS (1-877-372-3337)
• TTY line 1-800-952-0450
• FSAFEDS_at_shps.com
• FAX or mail claim to FSAFEDS (SHPS)
• 1-866-643-2245 (toll-free, inside U.S. only) or
• 1-502-267-2233

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Required Documentation HCFSA and LEX HCFSA

• Completed and signed claim form
• AND
• Explanation of Benefits form (EOB)
• From FEHB or FEDVIP or other insurance
• Must indicate type of service, date(s) of
  service, amount owed

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Required Documentation HCFSA and LEX HCFSA
(cont.)

• OR
• Detailed receipts
• Must indicate type of service, date(s) of
  service, amount paid
• None, with Paperless Reimbursement

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Required Documentation DCFSA

• Completed and signed claim form
• AND
• Copies of bill or signed receipt
• OR
• Have provider complete Part III of claim form
• Include providers tax ID or SSN on all claims

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Reimbursement Reminders

• Expenses are incurred on date of service, not
  when expense is paid (Orthodontia is an
  exception)
• Expense must be incurred AFTER effective date of
  enrollment AND during the Benefit Period
• All claims must be postmarked or faxed by April
  30, following end of Benefit Period
• Unclaimed funds are forfeited and used to offset
  administrative costs of the FSAFEDS program

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Contact Us

• www.FSAFEDS.com
• FSAFEDS_at_shps.com
• 1-877-FSAFEDS (372-3337)
• TTY line 1-800-952-0450
• Benefits Counselors are available Monday through
  Friday, 900 a.m. to 900 p.m., ET