Flexible Spending Account (FSA) Information

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  • Let’s talk about the specifics of your Flexible Spending Account, or FSA.
  • ConnectYourCare is the administrator of your healthcare accounts. With ConnectYourCare, you will receive access to an online portal to view your account balance, review transaction and claims history, and use health education tools. You will also receive a healthcare payment card to access funds.
  • Enrolled employees have access to an online portal, an online one-stop-shop for account information and health education tools. In here, you can view account balance and transactions, submit and view claims and reimbursement requests, manage personal and direct deposit bank information and access a variety of health education tools.
  • You will have access to a number of health education tools through the online portal. These advertisement-free online tools are a great resource for trusted healthcare information. From looking up the average cost of a prescription, to finding the best hospital in your area for treatment, to researching a medical condition, these health education tools cover your health information needs in one place.
  • You will be issued a healthcare payment card to easily access account funds. The card will be mailed to your home address. Please be on the look out for the card so you do not accidentally throw it away! The card is active upon receipt; there is no need to call to activate the card.
    I know this is little confusing, but even though the card says “debit” on the front, when you swipe the card at the merchant, please select the “credit” option or tell them it is a “credit” card.
    Your card is merchant coded and will work at all IRS compliant merchants. When you use your card, always remember to save your receipts. ConnectYourCare may require them to substantiate the eligibility of a purchase, or the IRS may require them at tax time. Keep in mind that only itemized receipts can be used to substantiate the eligibility of a purchase. Always save your itemized receipts!
  • If using the card is not possible – like the provider does not accept credit cards or you left the card at home – you may pay for purchases out of pocket and request reimbursement online. Whether you use your card or not, always show your health insurance card when paying for any healthcare service to ensure that you will be properly charged.
    The online reimbursement request process is quick and easy. Simply login to your online account and follow the instructions to submit a new claim. Once your claim is received, you can view your claim online to ensure it’s been received correctly.
    ConnectYourCare will process your claims in a matter of days. Once approved, reimbursements will be issued to you via check or direct deposit. You can get your reimbursement faster if you set up direct deposit online!!!
  • When you use your card or pay for an expense out of pocket and request reimbursement, always remember to save your receipts. ConnectYourCare may require them to substantiate the eligibility of a purchase, or the IRS may require them at tax time. Keep in mind that only itemized receipts, that indicate the product can be used to substantiate the eligibility of a purchase. Credit card receipts, non-itemized cash register receipts and cancelled checks are not acceptable forms of documentation.
  • EC
  • A Flexible Spending Account is a tax-advantaged account that allows you to use pre-tax dollars to pay for out-of-pocket qualified medical or dependent care expenses. You choose how much money you want to contribute to an FSA at the beginning of each plan year; you have access to the funds throughout the plan year.
    It’s very important to remember – this account is a USE IT or LOSE it account. Any money not spent is reverted back to your employer.
     
  • There are hundreds of uses for your FSA funds, including medical, dental, vision, and prescription expenses for you, your spouse or your dependents. Here are just some examples of qualified FSA expenses, as deemed by the IRS.
  • Some over-the-counter treatments are eligible for purchase with FSA funds. Other items require a prescription. The OTC items covered include many medical devices and other non-medicinal healthcare products. This list is subject to change. Please see www.connectyourcare.com/otc for updated information.
  • These expenses are not FSA qualified. It is important to know what is and what is not qualified. For instance, you can see vitamins are not covered, but pre-natal vitamins are.
  • You may also choose to enroll in a Dependent Care Assistance Program FSA, or DCAP, which covers employment-related dependent and elder care expenses and is an alternative to the Dependent Care Tax Credit.
  • There are some eligibility requirements. You must have incurred the expenses in order for you and your spouse, if married, to work or look for work, unless your spouse was either a full-time student or was physically or mentally incapable of self-care. You cannot have made the care payments to someone you can claim as your dependent on your federal tax return or to your child who is under age 19. For example, you cannot pay your oldest child to baby-sit your toddler. You and your spouse must maintain a home that you live in for more than half the year with the qualifying child or dependent.
  • Here is a list of qualified dependent care expenses. Pre-school, day care, camps, and before and after school care, are examples of eligible expenses.
  • Here is a list of expenses that are not qualified. The most important item to remember on this list is that you cannot pay for services that have not yet been provided. So, you cannot pay ahead for child care.
  • The IRS requires FSA administrators collect documentation from participants to show the items purchased with their account funds are qualified healthcare expenses. Some of your purchases will be automatically checked for eligibility, but for those that are not, ConnectYourCare will need to collect the documentation from you.
    If you pay for an expense out of pocket and request reimbursement, you will have to submit your itemized receipt. Even if you pay for an expense using your healthcare payment card, you may still need to submit receipts to ConnectYourCare for the purchase.  
    ConnectYourCare will post a notice in your online account and send you notices to let you know when receipts are needed. It’s an easy process to submit receipts. And, it’s really important to submit receipts when they are required because your card could be suspended if receipts are not received.
  • The IRS makes it easier for you to use your card at retailers by requiring retailers to comply with IRS inventory control guidelines, called IIAS. Many large retailers, pharmacies and supermarkets are IIAS compliant and will automatically substantiate your purchases, limiting the need for you to submit receipts.
    The CYC website provides a list of certified merchants and their planned implementation dates. The list is continually updated as additional merchants are certified and go-live dates change. Check back often!
    Unfortunately, healthcare providers like dentists, doctors and hospitals cannot auto substantiate your purchases. Since healthcare providers often cover ineligible expenses, like teeth whitening or cosmetic surgery, it’s impossible to verify that your card purchase at a doctor, dentist or hospital is for an eligible expense. So, you need to save your receipts for all card purchases at these locations and be prepared to send them in.
    Unfortunately, you cannot use your card to pay for expenses from your dependent care account. Instead, you may pay out of pocket and submit a request for reimbursement online.
  • If you pay out of pocket and request reimbursement or if your card purchase is not automatically checked to verify eligibility, you will have to submit receipts to ConnectYourCare.
    It’s easy to submit receipts for payment card purchases. Simply log into your online account and your card transaction will already display. Print your claim form and fax the form along with your documentation to ConnectYourCare. Or, you can use the letter ConnectYourCare mailed to you as your claim form and fax it with your documentation to ConnectYourCare. You can also send your form and receipts through the mail if you don’t have access to a fax machine.
    When you are submitting receipts, please keep in mind that each bar-coded claim form is unique. The bar code at the top of the form enables ConnectYourCare to electronically match the receipts you are submitting with the claim in your account. Be sure the receipts you send match the claim form you are submitting them with. If you are submitting documentation for several claims at one time, you may need to check the form number to be sure it matches.
    You can always view an image of your claims submission online to ensure it’s been received correctly. If receipts are submitted incorrectly, ConnectYourCare could have to request the documentation again.
    Additionally, you can get your reimbursement faster if you provide your direct deposit information online!!!
  • Since FSAs and DCAPs can cover medical, dental or vision, and dependent care expenses that you would otherwise pay out of pocket, you can potentially save hundreds of dollars in taxes.
    In this example, an account holder contributed $5,000 to her FSA. At a 31% tax rate, she saved $1,550 that year in taxes.
    You’ll also find that FSAs are especially useful when large healthcare expenses, like braces or laser eye surgery, are on the horizon.
     
  • Here are some of the most frequently asked questions we hear about FSAs.
    How will I be able to access my account funds? Your healthcare payment card will be the easiest way to access your FSA funds. You can also pay with another form of payment and request reimbursement from your account.
    When can I request reimbursement from my account? You can access your account as soon as your coverage starts.
    How will I know if I need to submit a receipt to ConnectYourCare for substantiation? You will get an email or a letter within a week of your payment card swipe or you can log in and go to the Claim Center.
    What if I don’t submit my receipts? You will need to refund the amount of the transaction or your payment card will be deactivated. If you fail to reimburse the account, the amount of the ineligible expenses may be added to your W-2 or withheld from your pay (at your employer’s discretion).
    Visit www.connectyourcare.com for more Frequently Asked Questions.
    Thank you for your time. We hope that you enjoy the significant advantages offered through a Flexible Spending Account and we look forward to serving you through the administration of your healthcare account.
  • Flexible Spending Account (FSA) Information

    1. 1. simplify | motivate | execute © 2010 ConnectYourCare All Rights Reserved. Flexible Spending Account (FSA) Information
    2. 2. 2 simplify | motivate | execute © 2010 ConnectYourCare All Rights Reserved. Who We Are ConnectYourCare is your healthcare account administrator. • Online account access • Health education tools • Healthcare payment card • Easy access to funds
    3. 3. 3 simplify | motivate | execute © 2010 ConnectYourCare All Rights Reserved. Online CDH Portal 24 x 7 real-time access to: • Obtain real-time account balances • Check transaction history on accounts – contributions and disbursements • Submit online request for reimbursement, check claim status, and view reimbursement schedule • Add/update personal and direct deposit information • Access a variety of health education and wellness tools
    4. 4. 4 simplify | motivate | execute © 2010 ConnectYourCare All Rights Reserved. Health Education Tools A variety of WebMD tools are available in the online portal. • WebMD Hospital AdvisorSM — Hospital information and rankings for specific procedures • WebMD Medication AdvisorSM — Information on less expensive prescription options • WebMD Treatment Cost AdvisorSM — Cost estimates on 350 of the most common medical conditions, tests, and procedures • WebMD Health TopicsSM — A to Z medical encyclopedia listing of over 1,500 ailments with information, treatment options, prevention, and more • WebMD HealthQuotientSM — State-of-the-art assessment tool that scores participants’ health status, calculates risk levels, and provides recommendations for health improvement and behavior change • Symptom Checker — Information about what medical symptoms could indicate and helpful facts before a doctor’s visit
    5. 5. 5 simplify | motivate | execute © 2010 ConnectYourCare All Rights Reserved. Accessing Account Funds Healthcare Payment Card • Use it at healthcare locations where Visa is accepted • Use it for qualified healthcare items • Automatically records purchase online • Money comes directly out of your account • No need to pay upfront and wait for reimbursement • Cannot be used at ATMs • Multiple ConnectYourCare accounts are accessible with the same card (if offered by your employer)
    6. 6. 6 simplify | motivate | execute © 2010 ConnectYourCare All Rights Reserved. Reimbursement Requests • Pay out of pocket for a qualified expense • Enter your claim online • View claim status online at any time • Receive reimbursement • Set up direct deposit for even quicker reimbursements
    7. 7. 7 simplify | motivate | execute © 2010 ConnectYourCare All Rights Reserved. Saving Receipts • Name of the patient • Date the service was provided • Name of the service provider • Description of the service • Amount/cost of the item or service provided Always save your itemized receipts!
    8. 8. 8 simplify | motivate | execute © 2010 ConnectYourCare All Rights Reserved. Best-in-class service to participant through multiple channels • Robust Online Portal (24 x 7) – Real-time account balances – Transaction history • Interactive Voice Response (24 x 7) – Account information – User name reminder or password reset • E-mail – Interactive communication method – Limited to basic operations, not used for personal health information (PHI) • Live Customer Assistance – Detailed questions or personal assistance – Trained in adjudication and call assistance Customer Service Available at All Times
    9. 9. 9 simplify | motivate | execute © 2010 ConnectYourCare All Rights Reserved. What is an FSA? Contributions • You decide how much to contribute to your account – your employer sets the limit • Contributions are tax free and processed through payroll Using Your Account • Use the funds for your qualified medical expenses or those of your spouse or your dependents • Total funds for the year are available when your plan becomes effective (even if you have not contributed that amount yet) Funds Forfeiture • Unused amounts at year-end are NOT rolled over to the next plan year
    10. 10. 10 simplify | motivate | execute © 2010 ConnectYourCare All Rights Reserved. Examples of Qualified Medical Expenses • Acupuncture • Alcoholism treatment • Ambulance • Automobile modifications for physically handicapped • Birth control pills • Braille books & magazines • Chiropractic care • Christian Science practitioner • Contact lenses & related materials • Crutches • Dental treatment • Dentures • Diagnostic services • Drug addiction treatment • Eye examination • Eye glasses • Fertility treatment • Flu shot • Guide dog or other animal aide • Hearing aids • Hospital services • Immunization • Insulin • Laboratory fees • Laser eye surgery • Medical testing device • Nursing services • Organ transplant • Orthodontia • Over-the-counter medications • Physical exam • Physical therapy • Prescription drugs • Psychiatric care • Smoking cessation program • Surgery • Transportation for medical care • Weight loss program to treat obesity • Wheelchair
    11. 11. 11 simplify | motivate | execute © 2010 ConnectYourCare All Rights Reserved. Examples of Qualified OTC Expenses Eligible Items • Acne medications • Anesthetic mouth gels & rinses • Anti-itch creams • Antiseptics • Bandages and dressings • Contact lens solutions • Eye drops • Eye patches • Prenatal vitamins • Reading glasses • Smoking cessation products • Sunburn creams/sun block • Wart and corn removers Eligible only with a prescription* • Allergy prevention/treatments • Antacids and acid reducers • Cold and flu medicines • Cold sore remedies • Decongestants • Oral pain relievers • Orthopedic shoe inserts • Pain and fever relievers • Sinus medications • Snoring cessation aids • Vitamins, herbal and fiber supplements • Weight loss and dietary supplements Some over-the-counter treatments are eligible for purchase with FSA funds. Other items require a prescription. This list is subject to change. Please see www.connectyourcare.com/otc for updated information. * A “prescription” means a written or electronic order for a medicine or drug that meets the legal requirements of a prescription in the state in which the medical expense is incurred and that is issued by an individual who is legally authorized to issue a prescription in that state.
    12. 12. 12 simplify | motivate | execute © 2010 ConnectYourCare All Rights Reserved. Examples of Not Qualified Expenses • Cosmetic surgery • Cosmetics • Denture supplies • Deodorant • Exercise equipment • Fitness programs • Funeral expenses • Hair transplants • Household help • Illegal operations and treatments • Insurance premiums • Maternity clothes • Moisturizers and wrinkle creams • Teeth whitening, teeth whitening products • Toothpaste, toothbrushes and mouth wash • Sun tan lotions (w/o sun block) • Vitamins
    13. 13. 13 simplify | motivate | execute © 2010 ConnectYourCare All Rights Reserved. What is a Dependent Care FSA or DCAP? Contributions • You may contribute up to $5,000 to your account ($5,000 per calendar year if single or married filing jointly, $2,500 if married filing separately) • Contributions are tax free Using Your Account • Use the funds for child or dependent care while you are at work – typical expenses include day care, before and after school care • Funds become available for use as you contribute them Funds Forfeiture • Unused amounts at year-end are NOT rolled over to the next plan year
    14. 14. 14 simplify | motivate | execute © 2010 ConnectYourCare All Rights Reserved. Eligibility Requirements To be reimbursed through your DCAP for child and dependent care expenses, you must meet the following conditions: • You must have incurred the expenses in order for you and your spouse, if married, to work or look for work, unless your spouse was either a full-time student or was physically or mentally incapable of self-care • You cannot have made the care payments to someone you can claim as your dependent on your federal tax return or to your child who is under age 19 • You and your spouse must maintain a home that you live in for more than half the year with the qualifying child or dependent.
    15. 15. 15 simplify | motivate | execute © 2010 ConnectYourCare All Rights Reserved. Qualified Dependent Care Expenses Expenses for dependent care must be provided during working hours. • Before school or after school care (other than tuition expenses) • Licensed day care centers • Nursery schools or pre-schools • Placement fees for dependent care providers, such as au pairs • Child care at a day camp, nursery school, or by a private sitter • Summer or holiday day camps • Late pick-up fees • Custodial care for dependent adults • Care of an incapacitated adult who lives with you at least 8 hours a day
    16. 16. 16 simplify | motivate | execute © 2010 ConnectYourCare All Rights Reserved. Not Qualified Dependent Care Expenses • Expenses for children 13 and older • Educational expenses including private school tuition • Expenses for food, clothing, sports lessons, field trips and entertainment • Overnight camp expenses • Registration fees • Transportation expenses • Late payment fees • Payment for services not yet provided (payment in advance) • Care for dependent while sick employee stays home
    17. 17. 17 simplify | motivate | execute © 2010 ConnectYourCare All Rights Reserved. Substantiation Requirements • IRS requires all charges to be verified as an eligible expense • Some expenses are verified automatically • All others require itemized receipts • Healthcare payment card will be suspended if itemized receipts are not submitted
    18. 18. 18 simplify | motivate | execute © 2010 ConnectYourCare All Rights Reserved. Automatic Substantiation Some retailers automatically check your card purchases for eligibility • Limits the need to submit receipts • IIAS compliant stores can provide auto substantiation • Visit www.connectyourcare.com/stores for a list of IIAS compliant stores • Doctors’ offices, hospitals and other medical providers cannot provide auto- substantiation; receipts are required
    19. 19. 19 simplify | motivate | execute © 2010 ConnectYourCare All Rights Reserved. Requirements for Submitting Receipts • Each bar-coded claim form is unique • Submit Claim Form with receipts via: – Fax – USPS mail • View the image immediately to ensure receipt. • Enter your direct deposit information online for faster reimbursement!
    20. 20. 20 simplify | motivate | execute © 2010 ConnectYourCare All Rights Reserved. Tax Savings FSAs and DCAPs can cover medical, dental or vision, and dependent care expenses that you would otherwise pay out of pocket, potentially saving you hundreds in taxes.
    21. 21. 21 simplify | motivate | execute © 2010 ConnectYourCare All Rights Reserved. Frequently Asked Questions How will I be able to access my account funds? • You will receive a healthcare payment card to access your FSA funds. You can also pay for eligible expenses with any other form of payment and request reimbursement from your account. When can I request reimbursement from my account? • You have access to the account when your plan becomes effective. How will I know if I need to submit a receipt to ConnectYourCare for substantiation? • If a receipt is needed, you will be notified by email or letter within a week of your payment card swipe. You can also check by logging into your account and visiting the Claim Center. What if I don’t submit my receipts? • You must provide the receipts within the time requested, or the transaction will be deemed ineligible, and you will be required to refund the amount of the transaction. If you fail to submit required receipts, your payment card will be deactivated. If you fail to reimburse the account, the amount of the ineligible expenses may be added to your W-2 or withheld from your pay.

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