Human Resources & EO
Health Care Spending Account
The Health Care Spending Account Program offers employees the chance to pay for qualified medically-related expenses on a pre-tax basis. Examples of qualified expenses include: physician and prescription co-payments, medical deductibles and coinsurance amounts, eyeglasses and contact lenses not covered by your insurance or vision plan, orthodontia and dental benefits not covered by your dental plan, hearing aids and durable medical equipment not covered by your health plan, smoking cessation and exercise classes prescribed by your physician.
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 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
Employees can elect between $500 to $5,000 each calendar year. It is important to estimate carefully as the Internal Revenue Service requires that any unused funds at plan year-end be forfeited. Starting in calendar year 2005 and going forward a new IRS regulation provides for a two and a half month "grace period" at the end of each plan year in which participants can spend down any unused contribution. This means you have until March 15 of the following calendar year to use up your contribution. The cost to administer this program is paid for by each employee on a before tax basis. New Free Debit Card - Employees who enroll in the Health Care Spending Account will automatically receive a free debit card which they can use to pay for eligible expenses immediately. A second family card for individuals 19 years or older is $5 per year, plus the administrative fee of $3.60 pre-tax for participation in one or both flexible spending accounts per month. If you are interested in a second debit card, please contact Benefit Strategies at 877.353.9442. If you were enrolled last year, retain your debit card and your new enrollment amount will be added to your existing card. If you are not able to use your debit card you can submit your requests for reimbursement on "the Healthcare Expense reimbursement form" http://www.salemstate.edu/assets/images/HR/FLEX_Claim_Form.pdf also faxing supporting documentation for your claim.
When you use your debit card remember to only use it for "medically-related items" and always save your receipts. Whether you pay by debit card, fax or mail your reimbursement forms to Benefit Strategies please remember that the IRS can audit you, so always save your receipts. It is recommended that you fax these forms along with your proof of payment by Wednesday of each week to Benefit Strategies at fax # 1.603.647.4668 in order to receive a reimbursement within a week. You can choose whether to have the reimbursement to be direct deposited into your bank or mailed to your home. You can be reimbursed for the full amount in your health care account without waiting until the end of the year (whether you have paid into the account in full or not).
New IRS regulations will require you to provide substantiation (receipts) for certain purchases made using the HCSA debit card. Failure to do so may result in de-activation of your debit card. Most purchases will be automatically validated when the card is used for GIC health plan co-pays, deductibles, or most eligible expenses at pharmacies. Dental expenses and vision expenses will always need to be substantiated. REMEMBER TO SAVE ALL RECEIPTS AND RESPOND IMMEDIATELY TO REQUESTS FOR SUBSTANTIATION.
Physician’s Statement Form for Healthcare Expenses:
The Internal Revenue Service requires a doctor’s statement be provided for certain healthcare expenses in order to be reimbursed from your healthcare Flexible Spending Account. The Physician's Statement must indicate the specific medical disorder, the specific treatment needed, and how this treatment will alleviate the medical condition. Your provider can also write a letter on his or her letterhead, as long as the letter includes all the information on this form (pdf). For fast and accurate processing of your reimbursement request, please make sure to include this Physician's 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
The reimbursement request form can be found on http://www.benstrat.com/downloads/FLEX_Physician_Statement.pdf. If your treatment extends beyond the time period listed on the form, you will need to submit a new Physician's Statement form.
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 going to http://www.benstrat.com/downloads/FLEX_DD_authorization.pdf. Log in using your username and password. If you have any problems logging in call Benefit Strategies at 877.353.9442.
Statements Online: Remember to setup your account so that you can review your claim information online by going to http://www.benstrat.com/ and under Client Link on the left side of your screen click the Commonwealth of Massachusetts Group Insurance Commission logo. Then click on the GIC Participant 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 Customer Service at 1.877.353.9442.
