What is a FlexibleSpending Account? • An account where you contribute money from salary BEFORE taxes are withheld • A way to save money on day care and health care services and items for you and your family • Key Benefit: Pay Less Taxes - Save Money!
FSAFEDS At-a-Glance • 318,000+ FSAFEDS Participants • 306,000+ Health Care FSA accounts • $2,015.00 average annual HCFSA election • 90% of 2009 participants re-enrolled for 2010
Health Care Reform & FSAFEDS • The Patient Protection and Affordable Care Act (PPACA) was signed into law on March 23, 2010 • Over-the-counter (OTC) medicines and drugs (except insulin) are only eligible for reimbursement, when prescribed by a physician, effective January 1, 2011 • Change affects all FSA programs
Health Care Reform (cont.) • OTC expenses have not “gone away” • Many OTC items, such as bandages, nasal strips and contact lens solutions are still eligible WITHOUT a prescription • Those that require a prescription are STILL eligible for reimbursement • These include acne treatments, allergy and cold medicines and antacids • See OTC Quick Reference Guide at www.FSAFEDS.com for more information
Health Care Reform (cont.) • Claims for OTC drugs and medicines MUST be accompanied by a copy of a physician’s prescription • OTC expenses incurred during the Grace Period (January 1 – March 15, 2011) follow the new guidelines • OTC expenses incurred in 2010, but not submitted until after January 1, 2011 (but before April 30) are not affected • Plan your 2011 election carefully if you normally include OTC expenses in your election
Health Care Reform (cont.) • Health care expenses for adult children, through the end of the calendar year in which they turn 26, are eligible for reimbursement through a HCFSA • A child includes a son, daughter, stepchild, adopted child, eligible foster child or a child who is placed with the employee for legal adoption • Includes adult children who are married • Do not need to reside with participant • Do not need to be financially dependent on the participant • Does not include spouses of adult dependents
Federal Benefits Open SeasonNovember 8 – December 13, 2010Enroll early to avoid the last minute rush!
Contact Us • www.FSAFEDS.com • FSAFEDS-HR@shps.com • 1-877-FSAFEDS (372-3337) • TTY line: 1-800-952-0450 • Benefits Counselors are available Monday through Friday, 9:00 a.m. to 9:00 p.m., ET