The Flexible Spending Account (FSA) program is a benefit that enables you to SAVE MONEY by placing pre-tax dollars in an account for unreimbursed healthcare or dependent care expenses. Employees determine the amount to contribute for the year via payroll deductions. The plan year runs from January 1st through December 31st
HERE’S HOW IT WORKS
Employees estimate their expenses for the upcoming year, and complete & submit the FSA enrollment form during Open Enrollment. Effective January 1st, the employee will have access to a P&A Group debit card and web portal to submit claims associated with qualified expenses for the calendar year. The pre-tax contribution lowers your personal taxable income, and subsequently, tax withholdings.
There are two types of Flexible Spending Accounts:
- Health Care FSA’s
- Dependent Care FSA’s
Initial enrollment must occur within 30 days of hire or during the open enrollment period (November 1st – November 30th). Employees determine the amount to contribute for the year via payroll deductions. It is called your annual election. This amount will be pro-rated over the remaining pay periods in the plan year (January 1 - December 31) for newly hired employees or for those who are enrolling due to life-changing events at a time other than the beginning of the calendar year.
P&A Group Complete Brochure on FSA Accounts
A Health FSA is so much more than Doctor and Prescription Co-Pays. It’s also for regular expenses associated with:
- OTC medicine and drugs such as allergy, sinus, cold, and flu products
- OTC supplies such as skincare products & sunscreen, bandages, contact lens solution & supplies, feminine care products, first aid supplies, pregnancy tests, and reading glasses
- Prescriptive glasses and contact lenses (even prescriptive sunglasses)
- Home medical devices such as blood pressure monitors, glucose tests & monitors breast pumps & accessories, and CPAP accessories
Maximum annual election - $3,050 maximum
Minimum annual election - $200 minimum
You must incur eligible expenses between January 1st and December 31st to be reimbursed from the amount you contribute to your Health Care FSA during your plan year. There is a $570 Roll-over feature. Up to $570 in unused funds can roll from one plan year to the next. Any excess funds in excess of $570 will be lost. Rollover funds will become available on your P&A Card in April even if you do not re-enroll for the following year. Separation from service is the only circumstance that would prevent you from utilizing the rollover funds in the future.
All eligible expenses must be incurred by December 31st. If you choose to use paper Reimbursement Claim Forms, they must be submitted by March 31st.
Dependent Care FSA
Expenses that are eligible for reimbursement include such items as childcare and eldercare services. The Dependent Care FSA can help you pay your eligible out-of-pocket dependent care costs. Expenses are limited to household services or the care of one or more qualifying individuals (i.e., a dependent child less than age 13 or a dependent adult), while you are at work.
Maximum annual election - $5,000 (if single or if married and filing jointly)
Maximum annual election - $2,500 (if married and filing separately)
Minimum annual election - $200
The Dependent Care Flexible Spending Account plan has a grace period of 75 days. This means that any funds from your previous years' account remaining after December 31st can be used for any qualifying purchase for up to 75 days in the following year.
Reimbursement Claim Forms must be submitted by March 31st.
LIFE QUALIFYING EVENTS
Qualifying life events can occur that alter your necessary Flexible Spending coverage. The birth of a child, marriage, or a change in employment, will all affect coverage for your FSA plan. When such an FSA qualifying event occurs, you are allowed to make a mid-year election change to your FSA. Use the enrollment form at the top of the page to create an account or change your annual limit. Detailed information can be found by clicking HERE.
RESOURCES TO DETERMINE IF AN FSA IS RIGHT FOR YOU!
When you enroll in an FSA, you receive the P&A Group Benefits Card. This is a convenient debit card that can simplify the process of paying for eligible expenses under your FSA, such as co-payments, prescriptions, glasses, dental expenses, and more. More information on the Benefits Card is available HERE.
The matrix below is an example of how enrollees save money with a Flexible Spending Account. Estimate how much YOU CAN SAVE per year by using this online FSA Calculator.
Check out this list of Medical and Dependent Care Eligible Expenses. This list is not inclusive, so if you are unsure if an expense is eligible for reimbursement, please call P & A Group at (800) 688-2611, Monday through Friday from 8:30 AM to 10:00 PM EST. You may also download a printable version of the eligible expenses list: FSA Eligible List.
How do I know that my store will accept my FSA Debit Card for medical expenses? Use this Store Locator to identify a list of providers that accept the Benefits Card.
Provider: P&A Group
Telephone: 1-800-688-2611 (Mon. thru Fri. 8:30 am to 10:00 pm)
P&A Group provides a Participant Portal to help you manage your accounts. Registration directions can be found in the Related Links below.