Flexible Spending Accounts
Hutcheson Medical offers employees two Flexible Spending Accounts. The Medical FSA Account and the Dependent Child Care Account provide a way to pay for certain unreimbursed health care and dependent childcare expenses with tax-free dollars. You save money because these contributions are made before taxes are deducted. These dollars are then used to pay for eligible expenses. Click Here for a summary of the plans.
Breaking News - FSA use-it-or-lose-it rule changed
The U.S. Department of the Treasury and the IRS Thursday issued a notice modifying the longstanding “use-or-lose” rule for health flexible spending arrangements. Participants now can carry over up to $500 of their unused FSA balances remaining at the end of a plan year. Click Here for details.
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If you participated in one or both of the FSA plans for 2013, keep your current card. It is good for three years and will be reloaded for 2014 contributions.
IRS Regulations:
- The IRS has changed regulations regarding Over the Counter Medications. Unless the medications are prescribed by a physician or used to treat a specific illness/injury, those drugs will no longer be eligible under the Medical Spending Account.
- Elections must be re-enrolled each year to continue to participate.
- The Maximum benefit for the Medical Flexible Spending account is being reduced to $2,500 effective with the 2013 year.
- Effective with the 2014 plan year, the longstanding “use-or-lose” rule for health flexible spending arrangements has changed, Participants now can carry over up to $500 of their unused FSA balances remaining at the end of a plan year.
For your convenience, you are issued a MedCom MasterCard™ to use for most expenses in lieu of filing claims. The MedCom card eliminates the need for you to pay up front for qualified expenses and then wait for reimbursement from your Flexible Spending Accounts. Plus, you will be able to access your accounts on-line to check your balances and view a history of your personal transactions at www.emedcom.net. MedCom's customer service number is 800-523-7542.
Plan Summary
Replacement cards and additional cards for spouse and/or adult children can be issued for a cost of $7.50, which will be deducted from your FSA account. Click Here for a replacement or an additional Card Request Form .
Note: Per IRS regulations, the MedCom card can only be used at merchants and vendors that have implemented an inventory information approval system (bar coding technology).
Please note that you must use your MedCom Card as "CREDIT" not debit when purchasing qualifying expenses.
You are able to utilize the website http://www.drugstore.com/templates/browse/default.asp?catid=59875 for purchases of over the counter medications at a discount when you utilize your MedCom Card. You will not be required to save your receipts for the qualified purchases on this site for items marked as "FSA Eligible". To create your on-line password Click Here for instructions.
Your plan is a Calendar Year Plan. You will need to estimate your expenses for a twelve month period (January through December) and an equal amount will be deducted from each paycheck, December through November.
Here's how it works:
• You enroll in one or both of the FSA plans during annual Open Enrollment
• Deductions are made on a "pre-tax" basis from each paycheck in the amounts you elect to set aside.
• You incur an eligible expense
• You pay the qualified provider with your Debit Card
• Works just like a regular bank debit card, only the "bank account" consists of funds you have set aside in your Health Care or Child Care FSA accounts. Your entire Healthcare FSA balance will be available to use on January 1st of each year. Dependent Care amounts are only available as moothly deductions are made.
• If your Childcare Provider accepts MasterCard, you can pay incurred childcare expenses with your card.
• If an eligible provider does not accept MasterCard, then you simply file a paper claim for reimbursement
• You can access your accounts on-line to view your account transactions
• Medical Care Flexible Spending Accounts and Child Care Accounts are completely separate. You can not use money set aside in your Medical Care account for Child Care expenses and vice versa.
Even if you use your BankCard to pay an expense, YOU ARE REQUIRED BY IRS TO MAINTAIN AND SAVE YOUR RECEIPTS AND DOCUMENTATION OF EACH EXPENSE. (Receipts or documentation must include the name of the provider; the name of the person for which the expense was incurred; the nature of the expense, to verify its necessity; the date the expense was incurred; and the amount of the expense not eligible to be paid by insurance). Certain expenses equal to medical or dental co-pays will be automatically adjudicated with out receipts. After you have used your card, MedCom will contact you to provide receipts if necessary. Save your receipts and be ready to present them when asked.
If you have a regular recurring expense in the same amount, you can have this amount and charge approved automatically without having to provide a receipt to substantiate the charge each time it is incurred. CLICK HERE for the form that needs to be completed and submitted to MedCom with one of your receipts.
Eligible expenses must have been incurred during the plan year and claims must be filed within 90 days after the end of the plan year.
Examples of eligible and ineligible expenses for Medical Costs. Click on Health Savings Account blue box and use filter box to better define your search.
Examples of eligible and ineligible expenses for Dependent Care Costs Click on Dependent Care FSA blue box and use filter box to better define your search.
Claim forms can be faxed to MedCom at 1-866-598-7800 or mailed to MedCom Flex Dept., P.O. Box 10269 , Jacksonville , FL 32247-0269. Click here for Claim Form.
MAXIMUM CONTRIBUTION:
$2,500 for the Medical Care account
$5,000 for Dependent Care ($2,500 if married and filing separate returns - if single parent maximum is $5,000).
Caution: Flexible Spending Accounts are subject to the Internal Revenue "use-it-or-lose-it" rule. We suggest that you underestimate your expenses for the first year until you become accustomed to the process. Eligible expenses must have been incurred during the plan year, but you have sixty (60) days after the end of the plan year to file your claim.
• To Calculate your Health Care FSA savings, Click Here
• To Calculate your Child Care FSA savings, Click Here
Plan Rules and Guidelines
Click Here for more detailed information on Health Care FSA accounts
Click Here for more detailed information on Dependent Care (Childcare) FSA accounts
Click Here for Difference between Tax Credits and Dependent Care FSA's
Click Here for a FAQ about Flexible Spending Accounts
For Any Questions, Contact:
Kathy Veal at 800-523-7135 or 706-882-2864 or via email at kathyveal@houze.org
