Health Care Flexible Spending Account

The Health Care Flexible Spending Account is a tax-free account that allows you to pay for essential health care expenses such as deductiblesDeductibleAn amount that you are required to pay before the plan will begin to reimburse for covered services., copaysCopayment (copay)A fixed-dollar amount that you must pay out of your pocket at the time of service to a provider or a facility for a specific health covered service.  Copays do not apply to the deductible requirement. For example, an office visit may have a copay of $30 under the Exclusive Plan and $40 under the Extended.  You must pay the amount at the time of service., coinsuranceCoinsuranceThe portion of expenses that you have to pay for certain covered services, calculated as a percentage. For example, if the coinsurance rate is 20%, then you are responsible for paying 20% of the bill, and the insurance company will pay 80%.  and prescription drugs that are not fully covered by your medical, dental and vision insurance plans. 

See eligible expensesEligible ExpensePurchases or services received that are allowed by the benefit provider and complies with IRS regulations. from our plan administrator, ASIFlex.

Limitations: You cannot participate in an HCFSA and a Health Savings Account (HSA)HSA (Health Savings Account)A tax-savings account that must be paired with a High-Deductible Health Plan, which can be used to pay for qualified health care expenses now or in the future. An HSA is a savings account that you own. The funds in an HSA carry forward year after year, even if you change employers or retire.  at the same time. 

Current plan year
(July 1, 2024 - June 30, 2025)

IRS contribution limit: $3,200 per employee for the 2024-25 plan year.

Deadlines: 

• You must incur qualifying expenses between:
  • New employee or new eligibility: benefit effective date and Sept. 15, 2025
  • Current employee: July 1, 2024 and Sept. 15, 2025
• You must submit your claimsClaimA written request such as a reimbursement of a health care expense made by you or your health care provider to the plan administrator whether is medical, dental, vision or a flexible spending account. for reimbursement by Nov. 15, 2025. 
• If you do not use all of your funds within the FSA, the remaining amount will be forfeited.

HCFSA basics

• Our HCFSA is administered by ASIFlex.
• This account is regulated by the Internal Revenue Service (IRS), who determines contribution limits, qualifying expensesEligible ExpensePurchases or services received that are allowed by the benefit provider and complies with IRS regulations. and has designated it as a “use it or lose itUse It or Lose ItThe IRS regulations in regards to the money you elect to contribute to flexible spending accounts that must be spent and claimed within the designated period of time or the monies will be forfeited.  ” account. 
• Enrollment in a medical, dental and/or vision plan is not required for you and/or your federal tax dependentsDependentAn employee’s spouse, common-law spouse, civil union partner, domestic partner, children under the age of 27, and qualifying disabled children over age 27 of the employee or of the spouse/partner who are biological, legally adopted or for whom there are parental responsibility documents issued by a court.  to participate in the HCFSA.
• Your FSAFSA (Flexible Spending Account)A tax-savings account set up by you to pay for certain qualifying expenses on a pre-tax basis, meaning before they are made subject to payroll taxes. becomes effective on your benefits eligibility date if you are a new hire or July 1, if enrolled during Open EnrollmentOpen Enrollment PeriodThe period during which an eligible employee may enroll in, change or cancel CU benefits plans. This event is held every spring, with an effective date of July 1..
• HCFSA enrollment elections do not rollover year after year.  You must re-enroll every year during Open EnrollmentOpen Enrollment PeriodThe period during which an eligible employee may enroll in, change or cancel CU benefits plans. This event is held every spring, with an effective date of July 1. in order to continue your account for a new plan year.

HCFSA contributions

• Current plan year: Your pre-tax contributions can be a minimum of $10 per month up to an annual total maximum of $3,200 for the current plan year (July 1 to June 30) per employee. The money is deducted from your paycheck pre-tax.
• The amount you elect will be divided by the number of remaining pay periods in the plan year.  Your final contribution will be June 30. 
• Your election is fixed for the Plan Year. However, changes are permitted if you experience a qualifying life event. 

Spending your money

• Funds in the account must be utilized on qualifying health care expenses, or you will pay both taxes and penalties.
• ExpensesEligible ExpensePurchases or services received that are allowed by the benefit provider and complies with IRS regulations. qualify for the HCFSA when they are incurred, not when they are paid.
• ASIFlexASIFlexThe third party administrator for the flexible spending accounts.  , our FSA Administrator, will mail you a Debit CardDebit CardA bank card that will allow you to pay the health care provider or merchant directly from your health care flexible spending account (HCFSA) or health savings account (HSA). that you must activate.  The Debit CardDebit CardA bank card that will allow you to pay the health care provider or merchant directly from your health care flexible spending account (HCFSA) or health savings account (HSA). will be pre-loaded with the FULL amount you elect at your enrollment. When you need to pay for an eligible expenseEligible ExpensePurchases or services received that are allowed by the benefit provider and complies with IRS regulations., present your ASIFlex debit card at the time of purchase. This will then pay for the health care service/product straight from your HCFSA account. The use of the card is not paperless, and supporting documentation may be required to substantiate a transaction.
• If you don’t have your ASIFlex Debit CardDebit CardA bank card that will allow you to pay the health care provider or merchant directly from your health care flexible spending account (HCFSA) or health savings account (HSA). with you at the time of purchase/services, you can file a claimClaimA written request such as a reimbursement of a health care expense made by you or your health care provider to the plan administrator whether is medical, dental, vision or a flexible spending account. online on the ASIFlex website you can download the free mobile app for Android and Apple devices.

Use it or lose it accounts

Failure to incur the expense and claim the reimbursement by the deadline will result in the forfeiting of your funds.

• For the current plan year: You must incur expenses from July 1, 2024 to Sept. 15, 2025 and claim the money by Nov. 15, 2025.

Effect on Social Security

Cafeteria planCafeteria PlanA plan that meets the requirements of IRS Code Section 125 and offers participating employees certain non-taxable benefits, such as the Premium Only Plan and flexible spending accounts dollars are deducted from your pay pretax, meaning before federal, state, Social Security and Medicare taxes are paid. Participating in cafeteria plansCafeteria PlanA plan that meets the requirements of IRS Code Section 125 and offers participating employees certain non-taxable benefits, such as the Premium Only Plan and flexible spending accounts reduces the salary on which annual contributions to Social Security are calculated, which may result in a reduction of the Social Security benefits received at retirement. The reduction is minimal and you may wish to discuss it with your tax advisor.

Effect on PERA

If you are a PERA member on or before June 30, 2019: Cafeteria planCafeteria PlanA plan that meets the requirements of IRS Code Section 125 and offers participating employees certain non-taxable benefits, such as the Premium Only Plan and flexible spending accounts dollars are deducted from your pay pretax, meaning before federal, state, and Medicare taxes are paid.  Your PERA retirement annuity or disability retirement is based on your PERA Highest Average Salary (HAS) calculation. Since cafeteria plans reduce the salary on which PERA calculates benefits, your PERA retirement benefits may be reduced.

Review the FSA plan document.