UH offers two health care flexible spending accounts – Consumer Select Health Care FSA and the Traditional Health Care FSA. Availability is based on your medical plan election. You can also participate in a Dependent Care FSA. Click here for an overview of the flexible spending accounts.
You can take advantage of tax savings available from a health care flexible spending account and a dependent care flexible spending account.
How the Accounts Work
- Estimate how much you will need to set aside in an FSA to cover your health care or dependent care expenses. The annual maximum contribution to a health care FSA is $2,600. Generally, you can contribute up to $5,000 in a dependent care FSA.
- The full amount you choose for your health care FSA is immediately available for your use even if you have not had amounts yet deducted from each pay. For example, if you decide to set aside $650 for the entire calendar year and you are paid bi-weekly, $25 will be deducted from each paycheck on a pre-tax basis, and the full $650 will be available for your use on your coverage effective date.
- You use your account toward eligible expenses you have during the plan year.
For the health care FSA, you have a choice of automatic reimbursement or a debit card to pay expenses. You make this choice when you enroll in the account.
- For a dependent care FSA, you file claims for reimbursement of eligible expenses.
- To learn more about auto reimbursement, click here.
- Participants in the Consumer Select plan only have the FSA debit card option.
- To be eligible for reimbursement, the expense must be incurred on or before December 31.
- If you are a new hire, the expense must be incurred after your hire date.
- Carefully estimate the amount you will set aside in an FSA. According to IRS guidelines, any money left in an FSA on December 31 will be forfeited.
- You must submit claims for reimbursement no later than March 31 of the following year.
- If your employment with UH ends, you have 90 days from your last day of employment to submit claims for reimbursement for services you had while an active employee. You can also choose to make after-tax contributions through COBRA coverage to maintain your annual contribution for services rendered through the end of the year.
- If you are an active employee currently enrolled in a FSA and you do not elect to continue participation in the FSA as part of a mid-year “change in status” (as defined by the IRS), you will have 90 days from the date of the “change in status” to file claims for any eligible expenses incurred. Eligible expenses are those incurred prior to your “change in status.”
Retain all itemized receipts and documentation. Health Design Plus or UH may request that you submit your receipts to prove expenses are eligible. If you do not submit documentation when requested, the expense may be designated as ineligible and you will have to repay the amount to the plan.