• How It Works
• Eligible Expenses
• Potentially Eligible Expenses
• Ineligible Expenses
• Medical Claim Submission Tips
• Dependent Care Expenses

How It Works

An FSA works like an annual household budget. You estimate your eligible expenses for the upcoming plan year and, before the plan year begins, you specify the amount of money you want to allocate to your medical and/or dependent care FSA. The money you set aside is automatically deducted from your salary on a pretax basis and deposited into your FSA before federal, state and FICA taxes are withheld.

You cannot change your elected amounts during the plan year unless you have a change in status as defined by the IRS. Changes may include: marriage or divorce, the gain or loss of a spouse or dependent child, your spouse becomes eligible for or loses medical coverage, your spouse starts or stops working full-time.

Medical Reimbursements: Quick and Efficient

After you incur your medical expenses, you simply file a claim along with third-party documentation (such as an explanation of benefits) for reimbursement of your eligible expenses. You can get claim forms online or by calling SelectAccount customer service. After your claim is processed, you will be reimbursed by check or direct deposit. Learn more about medical claim submission tips.

Dependent Care Reimbursements: Quick and Efficient

After you incur your dependent care expenses, you simply file a claim for reimbursement of your eligible expenses. You can get claim forms online or by calling SelectAccount customer service. After your claim is processed, you will be reimbursed by check or direct deposit. Learn more about dependent care expenses.

Even Easier with Crossover

Crossover is an optional feature available to subscribers of selected health plans. With Crossover, you can eliminate the need to file a paper claim with SelectAccount for out-of-pocket expenses not covered by your high-deductible health plan. As expenses are incurred and your health claims are processed, the patient responsibility amounts will be electronically transferred from your insurance company to SelectAccount and processed according to your available account balance.

Use It or Lose It

The IRS's "use or lose" rule states that you will lose any money left in your account at the end of the plan year. There is, however, a short time period (called a "run-out" period) after the plan year ends. During the run-out period, you can still submit claims for expenses incurred during the plan year. Some plans also allow a short overlap period (called a grace period) that allows spend down during a portion of the run-out period with expenses from the new plan year (Check your Summary Plan Description or Benefits Handbook for more specific information.)

If You Terminate Employment

If you terminate employment during the plan year, you may have a period of time after termination (a run-out period) to submit claims for reimbursement. Services rendered for health care expenses must be incurred prior to the termination date unless you continue contributing to your medical FSA account through COBRA. You will have until the completion of the plan year run-out period to submit your dependent care expenses incurred during the entire plan year as long as you were working or seeking work during that time.