What is an FSA?
A Flexible Spending Account or FSA is an account to set aside pre-tax dollars which can be used to pay for out-of-pocket medical expenses.
Is an FSA right for you?
With the cost of healthcare rising, patients are responsible for more out-of-pocket medical expenses than ever before. An FSA enables you to save money on these costs by setting aside pre-tax dollars to pay for any medical, dental, and vision care expenses that are not covered under your medical insurance plan.
On average, you can expect to save 20-40% for every dollar you contribute to your FSA – that’s $20-$40 saved for every $100 in contributions!
How Does it Work?
If it’s your first time opening an FSA, you’ll receive a debit card associated with the account which can be used to pay for eligible health and wellbeing expenses – the funds will be automatically debited from your FSA at checkout.
This card is accepted at most major healthcare service providers including hospitals, private medical practices, dental care centers, vision care centers, and retail pharmacies.
Be sure to keep your receipts and all proof of purchase documentation.
PrestigePEO offers two FSA options:
A health FSA allows you to set aside pre-tax dollars for non-reimbursable healthcare expenses, up to $2,750 per benefits plan year. This plan includes a $550 rollover provision effective 1/1/2021, enabling you to rollover up to $550 into funds for the following benefits plan year. Rollover funds will be forfeited at the end of 2021 if you do not re-enroll. You must re-enroll for 2021.
Dependent Care FSA
A Dependent Care FSA is an option for dependents up to age 13 which allows you to set aside pre-tax dollars for childcare expenses, up to $5,000 per benefits plan year. Childcare providers and/or facilities must be licensed to be eligible. Expenses incurred throughout the year will be reimbursed via your Dependent Care FSA.
Rules to Remember
- To continue participating in an existing FSA, you must re-enroll each year and adjust your contribution amounts if necessary.
- If you are enrolled in a High Deductible Health Plan (HDHP) and you or your employer contribute to a Health Savings Account (HSA), your FSA funds will be limited to out-of-pocket costs associated with dental or vision care. All eligible medical and drug expenses must be reimbursed through your HSA.
- Be sure to keep track of your expenses and spending. With a rollover limit of $550, any funds left over beyond that amount will be forfeited at the end of the benefit plan year.
- If your spouse contributes to a Dependent Care FSA through their employer, the combined maximum you may both contribute cannot exceed $5,000 per calendar year.
How to Enroll
- Go to https://employee.eflexgroup.com/ and login.
- If it’s your first time logging in, follow the prompts to create a username and password.
- Once logged in, click “Enroll Now”.
- Remember to re-enroll if you want to keep your FSA for the next calendar year.
The portal will be open to access beginning October 1 and close on December 13, 2020. Employees who miss the online portal timeframe may enroll via paper enrollment form until December 31, 2020. After December 31, 2020, you will no longer be able to enroll for the upcoming calendar year.