FSAFEDS
THE FEDERAL FLEXIBLE SPENDING
ACCOUNT PROGRAM
MORE MONEY IN YOUR POCKET!
Program Overview
THAT’S MORE MONEY IN MY POCKET!
What is a Flexible
Spending 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!
3 October 22, 2011
How does FSAFEDS work?
1. Estimate your expenses and determine your annual
contribution from salary, pre-tax
2. Enroll in a Health Care, Limited Expense Health Care
or Dependent Care FSA
3. Incur eligible expenses
4. Submit your claims*
5. Get reimbursed FAST
*A few exceptions, discussed later
4 October 22, 2011
How do you save money with
FSAFEDS?
Your contributions to FSAFEDS are deducted from your salary
BEFORE taxes…just like Thrift Savings Plan contributions.
• You’re 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
8 October 22, 2011
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
11 October 22, 2011
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
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., athlete’s 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
18 October 22, 2011
Typical HCFSA Expenses (cont.)
Over-the-counter medical items, such as, but 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
23 October 22, 2011
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 Enroll
November 14 – December 12 2011
Enroll early to avoid the last minute rush!
THAT’S MORE MONEY IN MY POCKET!
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, 9:00 a.m. – 9:00 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
39 October 22, 2011
PR - Participating Plans (cont.)
M.D. Individual Practice Association Inc.
NALC Health Benefit Plan
SAMBA Health Benefit Plan
UnitedHealthcare Insurance Co., Inc.
40 October 22, 2011
PR - Participating Plans (cont.)
FEDVIP Plans
Aetna (Dental)
GEHA (Dental)
MetLife (Dental)
FEP Blue Vision (Vision) – New for 2012
Vision Service Plan (Vision)
41 October 22, 2011
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
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@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
53 October 22, 2011
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 provider’s tax ID or SSN on all claims
54 October 22, 2011
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@shps.com
1-877-FSAFEDS (372-3337)
TTY line: 1-800-952-0450
Benefits Counselors are available Monday through Friday, 9:00
a.m. to 9:00 p.m., ET
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