Human Resources & EO
Flexible Spending Account Programs
Open Enrollment for Flexible Spending Account Programs
Open Enrollment for Participation in Plan Year 2012 is October 3 to November 18, 2011. Please read the following Open Enrollment Letter.
General Information:
A flexible spending account (FSA) allows employees to pay for certain non-reimbursed healthcare and dependent care expenses with before-tax dollars. Participation can significantly reduce their federal and state income taxes. Employees may establish a health care spending account, a dependent care spending account or both depending on their personal circumstances. For every $1,000 you put into one or both of these accounts it is estimated that you will save approximately $250 in taxes. You can only elect to participate during open enrollment (held in October and November each year for participation in the next calendar year) or if you are a newly hired employee. The only exception would be for participants who have a 'change in family status'. Changes in status under IRS regulations include: change in legal marital status; change in number of dependents; change in employment status; change in work schedule, which changes your eligibility for the program; dependent satisfies or ceases to satisfy eligibility requirements; significant change of residence or work-site; or judgment, decree or order pertaining to child or spouse. New enrollment forms must be processed through the Human Resources and Equal Opportunity department, and should not be mailed to Benefit Strategies directly. Participants must re-enroll each year in October/November for participation in the next plan year. If you participated in the prior year’s program you must re-enroll online and submit your confirmation page to Human Resources (signed and dated). If you need help re-enrolling online, please contact Benefit Strategies at 877.353.9442.
It is important to estimate your expenses carefully as the Internal Revenue Service requires that any unused funds at plan year-end be forfeited. IRS regulations provides for a 2½ month "grace period" at the end of every plan year which allows participants to spend down any unused contribution from the end of the plan year to March 15 of the next year. For example, if you have a $100 left over in your HCSA at the end of your plan year, you may still incur eligible expenses until March 15 of the next calendar year that may be applied to your remaining HCSA balance of $100. The cost to administer this program is paid for by each employee on a before tax basis. There is an administrative fee of $3.60 per month for either HSCA or DCAP alone or DCAP and HCSA combined. In 2011 employees can put a minimum of $500 up to a maximum of $5,000 into Health Care Spending Account, and $5,000 maximum in the Dependent Care Assistance Program. This is subject to change each calendar year.
See individual sections related to each of these programs. If you have questions you can contact the benefits coordinator at 978.542.6030 or Benefit Strategies directly (see contact information below).
New for 2011: Over-the-Counter Drug Change; As part of the Federal Patient Protection and Affordable Care Act, over-the-counter (OTC) drugs (such as Tylenol® and Prilosec® OTC) will no longer be an eligible expense for HCSA benefits effective January 1, 2011, unless accompanied by a prescription.
OTC expenses incurred between now and December 31, 2010: If you are a current HCSA participant, OTC expenses for the rest of this calendar year will not need a prescription and may be paid with your Benefit Strategies HCSA debit card (as long as you have a remaining balance available).
OTC expenses incurred on or after January 1, 2011 will require a doctor’s written directive: To be reimbursed for doctor-ordered OTC drugs, you may pay for the OTC drugs and then submit a claim form along with the prescription and the receipt to Benefit Strategies for reimbursement.
Click this link for a list of the IRS list of eligible expenses http://www.mass.gov/Eoaf/docs/gic/hcsadcapforms/HCSA_DCAPeligibleExpenses2011.doc
Benefit Strategies Contact Information:
Benefit Strategies is the contracted provided for the administration of both flexible spending account programs:
Customer Service: 877.353.9442
Email problems to: lfarr@benstrat.com
Forms: http://www.benstrat.com/forms_resources.html#flex
To Setup Direct Deposit:
You have the choice of receiving your reimbursement directly to your home address or setting up direct deposit by calling Benefit Strategies at 877.353.9442. The Direct Deposit form can be found here http://www.benstrat.com/downloads/FLEX_DD_authorization.pdf
Statements Online:
Remember to setup your account so that you can review your claim information online by going to http://benstrat.com/ and under Client Link on the left side of your screen click the Commonwealth of Massachusettts Group Insurance Commissiion logo. Then click on the GIC Participat Login. You will find directions on how to login and also find Quick Links to the GIC for HCSA and DCAP as well as Forms and Resources. If you have any problems call Benefit Strategies at LLC Contact customer service at 877.353.9442.
