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Glossary

Carryover: A Health FSA plan feature that allows a participant to carry over up to $500 of unused funds from one plan year to the next. Carryover funds are available after all Health FSA claims submitted during the run-out period have been paid. Note: Per IRS rules, a Health FSA plan cannot have both the carryover feature and a grace period, and the carryover feature does not apply to the DepCare FSA.

Change in status event: An event that allows a plan participant to change their election mid-year instead of waiting until the employer's open enrollment period. The employer's plan must allow the change, and the change must be consistent with the type of event (such as increasing an election amount because of the birth of a child). See your Summary Plan Description (SPD) for specific plan details.

Contribution: The dollar amount deducted from an employee's paycheck on a pre-tax basis and redirected into a pre-tax account such as an FSA.

Dependent care expenses: The expenses related to dependent care that enable an individual or married couple to work, look for work or attend school. These expenses may include babysitting, nursery school, preschool, before and after-school day care. Expenses may also include care for a spouse or dependent who is physically or mentally incapable of self-care and lives in your home for more than half the year. Find a complete list on our eligible expenses page.

Dependent care FSA: A dependent care flexible spending account (DepCare FSA) is an employer-sponsored plan that allows you to set aside a portion of your income on a pre-tax basis and then use that money to pay for eligible, work-related dependent care expenses incurred for a qualifying individual. This program is also known as a dependent care assistance program or DCAP.

Dependent care provider: The person or entity (babysitter, nanny, day care, etc.) providing dependent care services for an employee's dependent.

Dependents: Generally, the spouse and/or qualifying children of a covered individual.

Double-dipping: Obtaining reimbursement for an expense that has already been paid for through another health plan or pre-tax account. IRS rules do not allow this.

Dual-purpose expense: An expense that is used for medical purposes as well as general health, personal, or cosmetic use. For example, exercise equipment may be used for weight loss (medical purpose) or for general well-being (personal health purpose). For a dual-eligible expense to be an eligible expense, a CONEXIS Medical Determination Form must be completed by your doctor.

Election: The amount you contribute to your FSA. You decide your election amount during your employer's open enrollment period.

Explanation of benefits (EOB): A statement from your health plan that explains your health care benefits activity, such as a checkup with your doctor, lab tests, or hospitalization. The EOB will also show the amount you owe for the service provided.

Flexible spending account (FSA): A type of benefit plan established by the Internal Revenue Code. It's funded by pre-tax employee contributions and reimburses employees for expenses incurred for certain qualified expenses, such as health care expenses and dependent care expenses. The benefits are subject to an annual "use-it-or-lose-it" rule.

Grace period extension: A period of time that immediately follows the end of the plan year during which you may use funds that remain in your account to pay for eligible expenses. The grace period begins on the first day immediately following the last day of the plan year and ends two months and 15 days later. Your grace period begins on January 1 and ends on March 15.

Health FSA: A Health Flexible Spending Account (FSA) is an employer-sponsored plan that allows you to set aside a portion of your income on a pre-tax basis and then use that money to pay for qualified out-of-pocket medical expenses.

IIAS merchant: A merchant who uses an Inventory Information Approval System (IIAS). Many discount stores, grocery stores, and pharmacies are IIAS merchants.

Internal Revenue Code: A set of administrative laws structured together for use related to a specific topic. The Code is defined and published by the Internal Revenue Service (IRS).

Inventory Information Approval System (IIAS): A point-of-sale system that compares the items you are purchasing with a benefit card against a list of eligible items maintained by the merchant.

Medical Determination Form: A CONEXIS form required for a dual-purpose expense that has both a medical purpose and a general health, personal, or cosmetic purpose. For the dual-purpose expense to be reimbursed as an eligible expense, this form must be completed by a doctor and submitted along with your supporting documentation. You can find a Medical Determination Form in your online account.

Merchant category code: An electronic identifier that categorizes the type of merchant where you use your card. During the purchase process, the category information determines if your card can be used at that location. Doctors, dentists, vision care offices, hospitals, and other medical care providers use this identification process.

Nominal salary: In the case of a dependent care eligible expense, volunteer work and volunteer work for a nominal salary are not eligible expenses. Nominal salary refers to a small amount paid to the volunteer for their service.

Open enrollment: The period of time employees are given to decide whether they will participate in the employer's FSA plans. Employees must select benefits, choose their annual election amounts if enrolling in an FSA, and complete the enrollment process before the enrollment period ends.

Outstanding transaction: This is a benefit card purchase that requires additional attention from you. For more details, see unresolved card transaction requiring action.

Pre-tax deduction: The portion of income you elect to set aside into an FSA before federal, state and Social Security taxes are calculated and deducted from your paycheck.

Qualifying Individual: Generally, a qualifying individual is your dependent child under the age of 13 who lives with you for more than half the year, or your spouse or other qualifying dependent who is physically or mentally incapable of self-care and lives with you for more than half the year.

Request for Reimbursement Form: A CONEXIS claim form used to document purchases of and request reimbursement for eligible out-of-pocket FSA expenses. You can find this form in your online account.

Resolved card transaction: A CONEXIS benefit card purchase for which you have provided documentation, has been approved as an eligible expense, and no longer requires your attention.

Return Form: A CONEXIS form used to document an outstanding card transaction and is submitted along with supporting documentation. It is sent along with your monthly activity statement if you have an unresolved card transaction. An interactive Return Form is available in your online account.

Run-out period: Pre-determined period after the plan year ends during which you may file claims for expenses incurred during the plan year. Your run-out period begins on January 1 and ends on April 15. When the run-out time frame is over, you forfeit any funds remaining in your account, except up to $500 of Health FSA carryover dollars. Note: Health FSA carryover funds are deducted shortly after all claims submitted during the run-out period have been processed.

Summary Plan Description (SPD): A required legal document that provides detailed information about an FSA plan, including criteria for participation, plan benefits, election rules, and general provisions. Employers must provide this document to employees who participate in the plan.

Supporting documentation: Proof of purchase of an eligible expense or payment for health care service. Examples include itemized merchant receipts, detailed pharmacy receipts, EOBs, and provider's statement of work. See our Acceptable Documentation page.

Transaction: A purchase made with your benefit card.

Unresolved card transaction requiring action: Also known as an "outstanding transaction," this is a benefit card purchase that requires additional attention from you. Many times supporting documentation is required. If you have a CONEXIS Benefit Card, your monthly activity statement will list transactions requiring further action, and you will receive directions on how to resolve these transactions by completing a Return Form and submitting proper documentation.

Unused funds: The funds that remain in an account at the end of the plan year. Per IRS rules, unused FSA funds are forfeited after the end of the run-out period and, if applicable, after Health FSA carryover funds have been deducted.

Use-it-or-lose-it rule: A term created by the IRS to inform FSA participants to use their account funds before the plan year ends. Unused FSA funds are forfeited at the end of the run-out period and, if applicable, after Health FSA carryover funds have been deducted. This rule applies to both the Health FSA and the DepCare FSA.