Your health flexible spending account is a reimbursement account offered by your employer as part of your benefits package. Enrolling in a health FSA plan saves you money. It allows you to use pre-tax dollars toward eligible health FSA expenses that are not covered by your health, vision, or dental plan.
Participation in a health FSA is your choice. If you decide to enroll, you must satisfy any FSA eligibility requirements set up by your employer. The complete rules and regulations for your plan are available in the plan's Summary Plan Description (SPD).
Health FSAs are regulated by IRS rules for FSA plans. Some rules are specific to a health FSA and do not apply to a dependent care FSA.
IMPORTANT: Please review the following information so you are aware of the rules that apply to your health FSA. Use the links below to navigate to a specific section.
Eligible Health FSA Expenses
Your FSA Election
Reimbursement Requests
Submitting Reimbursement Requests
Change in Status Events
Unused FSA Funds
Only eligible expenses can be reimbursed under the FSA. These expenses are defined by Internal Revenue Code § 213(d) and your employer's plan.
Generally, eligible expenses include items that are meant to diagnose, cure, mitigate, treat, or prevent illness or disease. This also includes transportation for medical care. However, expenses such as cosmetic surgery, insurance premiums, vitamins, and items for general well-being are not eligible expenses.
As part of the changes introduced by the recent health care reform acts, beginning January 1, 2011, over-the-counter (OTC) medicines and drugs are no longer be eligible for reimbursement under your health FSA unless prescribed by a doctor (or another individual who can legally issue a prescription) in the state in which you purchase the OTC medicines.
Health FSA expenses must be incurred by you, your spouse, or your eligible dependents during the current plan year and while you are an active participant in the FSA plan. Medical care expenses are incurred when you (or your spouse or dependents) are provided with medical care- not when you are formally billed, charged for, or pay for the medical care.
Only qualified "out-of-pocket" expenses are eligible for reimbursement. Expenses previously reimbursed by your health FSA or covered by any other plan or program are not eligible for reimbursement. There's no "double-dipping" allowed.
Expenses reimbursed under your health FSA may not be used to claim any federal income tax deduction or credit.
Need more information or expense examples? Go to our Health FSA Eligible Expenses page.
The election is your contribution amount - the amount that you put into your health FSA when you enroll. Your employer determines the minimum (if any) and maximum election amounts for your plan.
Health FSAs are unique. Your annual health FSA election is available on the first day of the FSA plan year. But your total FSA election amount is deducted from your paycheck in equal amounts throughout the year. You can use your health FSA funds anytime during the plan year - as long as funds remain in your account.
A Request for Reimbursement Form is used to submit a reimbursement claim. The expenses listed must be incurred by you, your spouse, or dependent during the coverage period and the dates noted on the reimbursement form.
After you complete the Request for Reimbursement Form, submit it to CONEXIS along with appropriate supporting documentation.
Credit card receipts, canceled checks, and balance forward statements do not meet the requirements for acceptable documentation.
For some expenses, a Medical Determination Form from a doctor may be required. See our Eligible Health FSA Expenses page. Find a Request for Reimbursement Form and a Medical Determination Form by logging in to your online account.
You can submit your reimbursement requests three ways.
Your election cannot be changed during the plan year, unless you experience a qualifying change in status event based on IRS regulations, such as:
For more information regarding eligible status change events under your plan, see your Summary Plan Description (SPD).
Your FSA contributions are subject to the IRS "use-it-or-lose-it" rule. Any unused funds that remain in your health FSA will be forfeited at the end of the plan year. FSA funds do not rollover to the following year. The unused funds cannot be paid to you in cash or other benefits.
Your FSA plan includes a run-out period and a grace period extension. These features can help you avoid losing funds through the "use-it-or-lose-it" rule.
A run-out period is a pre-determined period after the plan year ends. During this time period, you may file claims for expenses incurred during the plan year. When the run-out period is over, you forfeit any unused funds. It's an IRS rule.
How this works: Your plan year ends on December 31, but your plan includes a run-out period. You have until April 15 to submit claims incurred from January 1 to December 31 of the previous year.
Your plan also includes a grace period extension. This feature creates a grace period that immediately follows the end of the plan year. During this timeframe, you may incur expenses and use the funds remaining in your account to pay for eligible FSA expenses.
The grace period begins on the first day immediately following the last day of the plan year (in your case, January 1), and ends two months and 15 days later (March 15).
How this works: Your plan year ends December 31; the grace period is two months and 15 days. Beginning January 1 through March 15 of the following year, you can incur expenses and use the remaining funds left in your FSA.
The grace period ensures that you have the opportunity to maximize your FSA funds and avoid forfeiting money through the IRS "use-it-or-lose-it" rule. You should still carefully estimate your planned expenses based on a 12-month period and make a conservative election based on that estimate.
Remember, the grace period is meant to help you when your expenses fall a little short of expectations. It is not an extension of the plan year that requires an increase in your FSA election amount.
If you terminate your employment during the plan year or you otherwise cease to be eligible under the plan, your active participation in the FSA plan and your pre-tax contributions will end automatically. Expenses incurred after your coverage end date are not eligible for reimbursement.
IMPORTANT: You may be entitled to elect COBRA continuation coverage under the health FSA and receive reimbursement for qualified expenses incurred after your termination if you continue to make your required contributions on a post-tax basis. However, you generally do not have the right to elect COBRA if the cost of continuation coverage for the remainder of the plan year equals or exceeds your remaining account balance. Please see your Summary Plan Description (SPD) for specific rules governing your plan.
IMPORTANT: The information on this website provides basic information regarding participation in your employer's FSA plan. Our site does not contain all of the rules that are specific to governing your employer's plan. For complete rules and plan information, review your plan's Summary Plan Description (SPD).
