New FSA Vendor Announced
Effective immediately, HealthScope Benefits will handle all claims for Flexible Spending Accounts for Plan Year 2018. This includes both the Health Care Accounts (HCA) and the Dependent Care Accounts (DCA). For questions regarding your FSA please call 1-800-219-8115 or visit
www.healthscopebenefits.com Healthscope will also handle the 2017 run out.
What is a Flexible Spending Account?
A Flexible Spending Account (FSA) is an employee benefit program that allows you to set aside money, on a pre-tax basis, to help you offset the rising cost of medical and dependent care expenses. Enrolling in an FSA is like giving yourself a raise because you set money aside for eligible expenses before your employer deducts taxes from your paycheck. This means the amount of income your taxes are based on will be lower, and as a result, your tax liability will also be lower.
There are two types of FSAs
❶The medical FSA is for eligible out-of-pocket medical, dental, and prescription expenses.
❷The dependent care FSA is used for child care and/or other dependent care expenses incurred while you (or you and your spouse, if you are married) work. Qualifying dependents are:
a) A child under age 13 in your custody whom you claim as a dependent on your tax return.
b) A spouse who is incapable of self-care.
c) A dependent that lives with you, such as a child over age 13, parent, sibling or in-law who is incapable of self-care and whom you claim as a dependent on your tax return.
Here's how you save money…
Without an FSA
$100 Monthly budget for medical care expenses
-$ 22 Taxes on the $100 taken from your paycheck
$ 78 Amount left for out-of-pocket medical care expenses
With an FSA
$100 Monthly FSA deposit for medical care expenses
-$ 0 No taxes (FSA contributions are not taxed)
$100 Amount left for out-of-pocket medical care expenses
How do I know how much to contribute to my FSA?
One of the most important rules surrounding FSAs is "use-it-or-lose-it." Money left in your account at the end of the year
cannot be rolled over to the next plan year. So plan carefully when deciding how much you want to contribute. An FSA calculator is available on the HealthSCOPE Benefits website to help you estimate how much money to set aside and how much money you may save on taxes.
Contributions to your FSA
The maximum contribution for the Medical FSA for 2018 is $2650 per employee. The 2018 maximum for the Dependent Care FSA is $5000 per family, or $2500 per employee if married filing separately.
How does my contribution pay for claims?
Your annual election will be divided among the number of paychecks you get for the year, and that amount will be deducted from your check PRIOR to being taxed.
If you sign up for an FSA, then you will receive a Flex Benefit Card in a few weeks. The Flex Benefit Card is an easy, automatic way to deduct your qualified purchase direct from your FSA account. If you do not use the benefit card at the time of your purchase, you can pay for the purchase out of pocket. Then, simply fill out a claim form and submit it along with the receipt. Once the claim is approved, the amount is deducted from your FSA and a reimbursement is made to you.