FLEXIBLE SPENDING ACCOUNTS

What is a Flexible Spending Account (FSA)?

A benefit plan provided by your employer that lets you set aside a pre-determined amount of your paycheck into a spending account before your income taxes are calculated and taken out of your paycheck.  Then, during the year you can be reimbursed from your spending account for qualified healthcare and dependent daycare expenses without paying taxes on these funds.

 

Why should a person participate in a Healthcare Re­imbursement Account when he/she might already have health insurance?

Unless you have a health insurance plan that provides you with 100% coverage, you should consider investing in your employer's Healthcare Reimbursement Plan.  Your Healthcare Reimbursement Account is used to pay for expenses not covered by your health insurance plan.  Examples of the expenses that can be covered under your Health Reimbursement Account include plan deductibles, plan Out-of-Pocket co-insurance limits, office visit co-pays, prescription drug co-pays, eye exams, glasses, orthodontics, hospital care deductibles, and even Over the Counter (OTC) health care items, to name just a few.

 

If I set money aside out of my paycheck, can I change my contributions during the year?

Under certain conditions, yes you can, but only if you have a change in status such as: a marriage, birth, adoption, or a change in your, your spouse's, or dependent's employment status.  So you need to plan carefully.

 

If I put money from my paycheck into a Flexible Spending Account won't my check be reduced by that same amount?

No. Your take home pay will be temporally reduced, but that reduction will also be partially off-set by the amount of taxes you are no longer paying to the government.  You will also receive the funds back, tax free, normally within seven to ten days once you submit your claim to our of­fice.

 

How do I benefit by participating?

Your greatest advantage is the tax savings.  Every dollar you set aside in your account reduces your income taxes, and you can be reimbursed for qualified expenses that you are currently already paying for with after-tax dollars!

 

What happens to my accounts if I terminate my employment?

You will be able to request reimbursement for healthcare and daycare expenses for services provided prior to your termination.  You should check your Summary Plan Description (SPD) for any additional rights or benefits provided by your employer's plan.

 

What if I do not use all of the money I put into my accounts?

You always want to carefully review your estimated expenses before finalizing the amounts you will contribute.  Because you receive a tax break on your contributions, the IRS requires that any contributions that are not used during the plan year, or during the following grace period, must be forfeited and cannot be used in a later plan year.

 

What if I am not covered under my employer's health insurance plan?

That is O.K. You and your family can still participate in the Healthcare or Dependent Care Reimbursement Accounts.

 

Do I have to wait for the money to be deposited into my account in order to make a claim for reimbursement?

The annual amount you have allocated for the Healthcare Reimbursement Account is available to you at any time throughout the plan year.  The amount available to you from your Dependent Care Reimbursement Account is only the amount you have contributed to date.

 

How do I get reimbursed for my expenses?

Once you have completed the enrollment form, you will receive a claim form and instructions on how to file your claims.  All you need to do is to complete the form, attach a copy of the healthcare or dependent care bill.  Then either mail or fax the claim form and copy of the bill to Integrity Administrators.  Normally, within seven to ten days, you will receive your reimbursement check.

 

What if I need help or have questions?

We are here to help. Just call our Customer Service Department, and we will help you with your questions.

Frequently Asked Questions

Phone 800.562.9383    Fax 916.921.3383

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