These questions and answers
are provided for informational purposes only and are general in nature. Answers
may differ based on your specific plan provisions. Please review your company's
Plan Document and Summary Plan Description for specific plan provisions.
1. Does a Health Care Flexible Spending Account replace my medical
plans?
No.
A Health Care Flexible Spending Account offers you a means to pay for eligible
out-of-pocket health care expenses with before-tax money. You should first
submit your claims to your health care plan so they can pay according to the plan
provisions. Then, the remaining out-of-pocket eligible expenses can be
submitted to your Health Care Flexible Spending Account.
2. How much money will I save by enrolling in a Flexible Spending
Account?
Your
before-tax contributions made to your Flexible Spending Account are not
included in your gross income for federal (and most state) tax purposes. Your
savings will be based upon your individual income and tax filings.
Only
medical expenses that exceed 7.5% of your Adjusted Gross Income (AGI) can be
deducted on your federal income tax return. Before-tax Health Care Flexible
Spending Account contributions are tax-free (for federal tax purposes). You do
not have to meet the 7.5% AGI threshold before receiving the tax savings. Money
set aside through a Flexible Spending Account is also exempt from FICA taxes.
When
you incur a dental or vision expense, simply submit your receipt for services
with a Reimbursement Request Form – Health Care Flexible Spending Account
indicating you do not have coverage.
No,
because you have already received reimbursement with tax-free dollars. Only
expenses not reimbursed through an insurance plan or a Flexible Spending
Account may be claimed on your federal income tax return.
6. Can the Health Care Flexible Spending Account pay my doctor directly?
No,
it is the participant's responsibility to pay the provider. Reimbursements for
expenses are sent directly to the participant.
No.
The Health Care Flexible Spending Account is subject to the "use it or
lose it" rule which means that any unused money left in your Flexible
Spending Account at the end of the plan year, or grace period if applicable,
will be forfeited. However, you can avoid any loss of funds by carefully
determining how much to set aside and making sure that you file claims promptly
and prior to end of the claims filing deadline established under your plan.
8. What happens if I retire or terminate employment with the company
mid-year?
Once
you stop making contributions to your account, you cannot submit claims for
expenses incurred after you stop participating. You may choose to continue your
Health Care Spending Account deductions through COBRA on an after tax basis.
You will be billed for the contribution amount and as long as you continue to
pay, you will be able to continue using your account through the end of the
plan year or your last monthly contribution, whichever occurs first.
9. Whose expenses are eligible for reimbursement under a Health Care
Flexible Spending Account?
A
Health Care Flexible Spending Account may be used to reimburse eligible health
care expenses for you and anyone who is claimed as a dependent on your federal
income tax return.
10. Where does the forfeited money go?
The
IRS has imposed regulations for the use of forfeited money. The funds revert
back to your employer and are generally used to defray the employer's costs for
administering the plan.
11. How long is my election in effect?
Your
election is in effect until the end of the plan year. Each year you will have
the opportunity to re-enroll and select a new annual election amount. You may
be allowed to change your contribution amount during the year if you experience
a change in status event as defined under your plan. If you stop contributing, only services incurred
while you were making contributions will be reimbursed. Please refer to About Your Benefits: Health Care for more information.
12. Is there a deadline for submitting claims?
Your
employer will determine a year-end run-out period, which is generally three
months after the end of the plan year. All claims must be submitted by such
claims filing deadline as defined under your plan. Remember, claims must have
been incurred during the plan year. The deadline for submitting claims are
April 30 for the Dependent Care Spending Account and June 30 for the Health
Care Spending Account.
13. Are there limits to how much I can contribute to a Health Care
Flexible Spending Account?
During
the enrollment period each year, you decide how much you want to deposit into
your Health Care Spending Account. You can set aside as little as $10 per month
($120 per year), up to a maximum of $425 per month ($5,100 per year).
14. Is there a toll-free number where I can get more information on
eligible expenses or how the
You
can contact the Acclaris Reimbursement Center, virtually 24 hours a day, 7 days
a week, at www.acclarisonline.com or call the Acclaris Reimbursement Center toll-free
at 1-888-880-2775, Monday through Friday (excluding New York Stock Exchange
holidays) between 8:00 A.M. and 8:00 p.m.
Eastern Standard Time to speak with a Customer Service Representative.
If
your baby-sitter does not have a Tax Identification Number, you must submit
his/her nine-digit Social Security number with your reimbursement request.
Yes.
You can include expenses paid to a baby-sitter if the services are necessary in
order for you (or, if you are married, you and your spouse) to work.
No.
The Health Care Flexible Spending Account and Dependent Care Flexible Spending
Account are two separate accounts. You cannot transfer money between the two,
or submit reimbursement requests that are not consistent with each account’s
expense eligibility requirements.
18. How can I check my Flexible Spending Account(s) balance?
If you
have any questions about your account(s) status, please contact the Acclaris
Reimbursement Center at www.acclarisonline.com virtually 24 hours a day, 7 days a week, or call the
Acclaris Reimbursement Center toll-free at 1-888-880-2775, Monday through
Friday (excluding New York Stock Exchange holidays) between 8:00 A.M. and 8:00 p.m. Eastern Standard Time to speak
with a Customer Service Representative.
The
main reason is that a growing number of medications are becoming available
without a prescription and are now available over-the-counter.
20. What over-the-counter medications will be reimbursed?
Types
of over-the-counter medications that are eligible for reimbursement include
antacids, allergy medicines, pain relievers and cold medicines. Some
over-the-counter drugs will be considered "dual purpose," meaning
that they have a personal/cosmetic or general health purpose and a medical
purpose. In order for these dual-purpose medications to be reimbursed through
your health care flexible spending account, you may be required to include with
your reimbursement request a letter of medical necessity from a medical
practitioner. The letter must state that the medicine or drug is recommended to
alleviate or treat a specific medical condition. A copy of the letter of medical
necessity must be submitted each time that you submit a copy of your receipt
for the "dual purpose" medication or drug.
21. What over-the-counter medications will not be reimbursed?
In
general, medications that are merely beneficial to your general health, such as
dietary supplements, toiletries and sundry items, are not eligible for
reimbursement.
22. Is there a limit to the number of over-the-counter medications for
which I can be reimbursed?
Stockpiling
of over-the-counter medications is not allowable. Purchase must be of a
reasonable quantity for use during the plan year.
23. How do I get reimbursed for my over-the-counter medications?
You
must complete a Reimbursement Request Form – Health Care Flexible Spending
Account and attach a copy of the cash register receipt for eligible
over-the-counter medications. The receipt must include the date of purchase,
name of the drug or medicine and the amount paid. Handwritten non-prescription
drug names on cash register receipts will not be accepted. The name of the
drug(s) and price(s) must be circled on the receipt.
24. What are my methods of payment?
You
may be reimbursed by check, or by authorizing Direct Deposit of your payments
directly into the bank of your choice. To authorize Direct Deposit, simply
complete a Direct Deposit Authorization form and allow up to two weeks for
Direct Deposit to be enabled. Payment by check will continue until the Direct
Deposit is enabled. A Direct Deposit Authorization form can be found on this
site or Fidelity NetBenefits® in the Forms
section as well as on w3. If you would like to receive checks, no action is
necessary.
25. IRS Standard Mileage Rates
2009
- You can use a standard rate of 24 cents a mile for use of a car for medical
reasons. You can also include parking fees and tolls.
2008 - You can use a standard rate of 19 cents a mile for use of a car for
medical reasons. You can also include parking fees and tolls.
These
questions and answers are provided for informational purposes only and should
not be construed as legal or tax advice. Please review your company's Plan
Document and Summary Plan Description for specific plan provisions.
3.IM-H-470P.100