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  • How a medical flexible spending account works

    Use pre-tax dollars to pay for healthcare expenses

    Knowing the following will help you take advantage of the benefits of your SelectAccount FSA:

    • The medical FSA must be offered through an employer
    • There are no health plan requirements
    • Eligible medical expenses incurred by tax-eligible dependents can be reimbursed through the FSA
    • Eligible medical expenses incurred by non-tax-dependent adult children age 18 through the end of the calendar year in which they turn age 26 can be reimbursed through the FSA

    You can use your FSA funds to pay for medical expenses and supplies needed by you.

    Qualified Expenses

    • Copayments, coinsurance and deductibles (for health, dental and vision)
    • Dental work and orthodontia
    • Eye exams, contact lenses, and eyeglasses
    • Prescriptions
    • Over-the-counter supplies
    • Mileage for medical care
    • Smoking cessation programs
    • Lasik

    Non-Qualified Expenses

    • Athletic club memberships
    • Cosmetic surgery and procedures
    • Health insurance premiums
    • Cleaning services
    • Diet foods
    • Marriage counseling

     

    When determining your election amount, it’s best to plan ahead and consider the following:

    • Plan to set aside money for known medical expenses. Consider if you will need money for dental, vision, orthodontia or other medical expenses.
    • Unused money in your FSA will be forfeited at the end of your plan year unless your plan has a rollover option. In this case, up to $500 of the balance can be rolled forward into the next plan year.
    • Effective 2013, the Affordable Care Act limits your employee contribution to $2500 per plan year.
    • Funding for the plan year cannot be changed unless there has been a qualifying lifestyle event.
    • The entire funding in your account is available for reimbursement at the beginning of the plan year, even if funds have not yet been withdrawn from your paycheck and placed in your account.

    For greater convenience, we offer several optional features for your FSA account. Please contact your employer to determine which options are available to you.

    Debit Card

    With the debit card, we can transfer money directly from your account to the provider to pay for medical expenses. You don’t have to pay cash up front, submit a claim, or wait to be reimbursed. Some purchases may require additional information – you would be notified by mail if this occurs.

    Crossover

    This feature allows SelectAccount to receive your health plan claims automatically from your insurance carrier. You do not need to submit any paperwork to us, with the exception of expenses not covered under your health plan. In some cases, dental and vision crossover may also be available.

    Pay-the-Provider

    SelectAccount can pay a provider directly for medical expenses on your behalf. This feature is only available when crossover is offered as part of a Blue Cross and Blue Shield of Minnesota health plan.

    Direct Deposit

    SelectAccount can send reimbursement payments directly to the checking or savings account you designate.

    Types of FSAs

    General Purpose

    This is a traditional FSA. Eligible Expenses include medical, dental, vision, orthodontia, and over-the-counter. (See Section 213(d) of the Internal Revenue Code)

    Post Deductible

    Eligible expenses are limited to dental and vision expenses until the health plan deductible is met.

    Limited

    Eligible expenses are limited to dental and vision only.

    FSA combined with an HSA

    When pairing an FSA with an HSA, the account is a post deductible account. Once the deductible on the high deductible health plan is met, the account can reimburse for non-deductible medical expenses in addition to vision and dental expenses. Employees participating in a general purpose FSA are not allowed to contribute to an HSA.

    Claim Submission Deadline

    The claim submission deadline is typically called run out and is indicated in your employer’s Summary Plan Description. The run out deadline is the last day your claim can be received by SelectAccount and be eligible for processing from the account. Employers can choose the length of the run out for their group. Any funds that remain in the account after the run out deadline are returned to your employer.

     Grace Period

    A grace period allows you the opportunity to spend down the balance from a previous plan year using expenses incurred in the current plan year. The Employer determines if a grace period is offered. Currently the IRS allows a grace period to extend up to 2.5 months past the end of the plan year.