Important Information You Need to Know:
The Coronavirus Aid, Relief, and Economic Security (CARES) Act signed into law as of March 27, 2020, contains important provisions that will affect Health Care Flexible Spending Accounts (Health FSAs). Also, under existing rules, certain changes in your situation may allow you to increase or decrease contributions, or cancel your Dependent Care Reimbursement Account (DCRA). Click here for the details.
PEEHIP’s Flexible Spending Accounts are administered by HealthEquity through a partnership with Blue Cross and Blue Shield of Alabama.
PEEHIP offers all actively employed members a great way to save on health care expenses not covered by insurance and dependent day care expenses by simply enrolling in PEEHIP’s Flexible Spending Accounts (FSA) program.
The FSA program offers two plans to fit your needs. A Health FSA allows members to put aside pre-tax payroll deductions to be used on co-pays, deductibles and other covered services each plan year, while a Dependent Care Reimbursement Account (DCRA) allows funds to be used on dependent daycare expenses.
How a Flex Account Works:
- Calculate predictable out-of-pocket costs.
- Enroll during Open Enrollment or within 30 days of your hire date.
- Contribute pre-taxed dollars via payroll deductions.
- Use your funds for eligible out of pocket expenses. Pay your provider using your Flex Visa debit card for eligible medical, prescription drug, dental, and vision expenses at the time of service. If you do not use your card at the time of service you can submit an FSA Reimbursement Form along with receipts for reimbursement of eligible expenses. For reimbursement of daycare expenses from your DCRA, submit a Dependent Care Reimbursement Form and attach the receipt for the service. If your daycare cost is consistent each month you can select the Annual option on the reimbursement form and your funds will be automatically reimbursed to you each month.
Helpful Tools and Information
- Read the FSA brochure effective October 1, 2019.
- Check out HealthEquity's Video Library.
- Estimate your annual health care expenses.
- Estimate your annual dependent care expenses.
- Enroll online.
- Easily access your FSA information online.
- Download the HealthEquity mobile app.
- Learn about the Health FSA's Carryover Provision.
What is a PEEHIP Flex Spending Account?
It is a special tax savings account that allows active employees to set aside a portion of their earnings to pay for eligible medical and/or dependent daycare expenses through payroll deduction on a pre-tax basis. There are no service charges or user fees and, best of all you, don’t pay taxes on the money set aside for a Flex Spending Account. PEEHIP offers two flexible spending accounts: the Healthcare FSA and the Dependent Care FSA.
What kind of expenses can a Healthcare FSA be used for?
Funds set aside in your Healthcare FSA can be used to pay for a vast list of medical, dental, and vision expenses. This includes doctor and prescription co-pays, lab fees, ambulance fees, diagnostic devices like blood sugar test kits, dental co-pays and orthodontia, eyeglasses and exams, contact lens (and their cleaning supplies), Lasik surgery, hearing aids (and batteries), breast pumps (and supplies), crutches, wheelchairs, and even bandages. See IRS Publication 502 for a more detailed list.
What kind of expenses can a Dependent Care FSA be used for?
Funds set aside in you Dependent Care FSA can be used to pay for daycare or preschool expenses for your qualifying dependent so you (and your spouse), can work outside of the home or attend school full-time. The dependent must be under 13, or a dependent child under 19, or a spouse that is physically or mentally unable to care for him/herself, or a mentally or physically disabled adult you can claim as a dependent on your tax return, and reside in your home for 8 or more hours each day.
How do I keep up with the available balance in my FSA?
You can easily access your FSA balance online by logging into the member portal at www.myhealthequity.com/peehip or through the HealthEquity mobile app. You can also contact HealthEquity customer service representative 24/7 at 877.288.0719.
Is there a deadline to use the funds?
Yes, funds must be used by the end of the plan year, September 30. The PEEHIP plan year runs from October 1 through September 30. The Timely Filing Deadline to submit a reimbursement request for expenses incurred within the plan year is January 15, following the end of the plan year. For example, if you are enrolled in an FSA for the plan year of October 1, 2018, through September 30, 2019, you have until January 15, 2020, to submit a reimbursement request for expenses that were incurred by September 30, 2019.
Do I have to wait until the funds are taken from my salary to file a claim?
For the Healthcare FSA, no. For the Dependent Care FSA, yes.
The Healthcare FSA is like a no-interest loan. The total annual amount you select is available for use the first date of the plan, which is usually before the first contribution is withheld from your salary.
The Dependent Care FSA is a like a checking account. Therefore, the funds must be in the account before a reimbursement can be sent out. Reimbursement is limited to the amount already withheld from your salary.
How do I access the funds in my Healthcare FSA?
Everyone that enrolls in a Healthcare FSA, will receive an FSA Visa debit card to pay for their qualifying out-of-pocket healthcare expense at the time of service directly from the funds in the account. Use of the card is encouraged, but not required. If you do not use the card to pay at the time of service, you can request a reimbursement manually through the HealthEquity website, mobile app, or by submitting a paper reimbursement form along with supporting documentation.
How do I access the funds in my Dependent Care FSA?
You must submit a Reimbursement form and a receipt, to request funds from your Dependent Care FSA through the HealthEquity website, mobile app, or by mail or fax. If the amount of the expense is consistent each month, you can select the “Annual” option on the request form and the reimbursement will be automatically sent to you each month as funds become available.
Am I automatically re-enrolled each year?
No, participation in the next plan year is not automatic. You must re-enroll each year during the Flex Open Enrollment (July 1 – September 30) to continue participation, even if you want to contribute the same amount as last year.
How much does it cost?
As an active employee, you will not pay a service charge or user fee to participate in an FSA. You select how much to set aside for the plan year. The annual amount you select is divided by equal monthly contributions which are withheld from your paycheck each month before taxes are taken out. The annual amount cannot be less than $120. The maximum annual amount cannot be more than $5,000 for a Dependent Care FSA ($2,500 if married filing separate tax returns) or more than $2,700 for a Healthcare FSA.
Click here to view more information regarding Flexible Spending Accounts.