FSAFEDS
THE FEDERAL FLEXIBLE SPENDING
ACCOUNT PROGRAM
MORE MONEY IN YOUR POCKET!
2015 Program Overview
THAT’S MORE MONEY IN MY POCKET!
What is a Flexible
Spending 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
A Fed-friendly tax break
Key Benefit: More Money in Your Pocket!
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April 9, 2015
How does FSAFEDS work?
1. Estimate your expenses and determine your annual
contribution from salary, pre-tax
2. Enroll in a Health Care, Limited Expense Health Care
or Dependent Care FSA
3. Incur eligible expenses
4. Submit your claims*
5. Get reimbursed FAST
*A few exceptions, discussed later
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April 9, 2015
How do you save money with
FSAFEDS?
 Your contributions to FSAFEDS are deducted from your salary
BEFORE taxes…just like Thrift Savings Plan contributions.
• You’re going to have these expenses, so why pay more in taxes
than you have to?
• The average person will save about 30% each year
• A Fed earning $50,000 and contributing $2,000 to an FSAFEDS
account will have around $600 more to spend
• PUTS MORE MONEY IN YOUR POCKET!
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April 9, 2015
Savings Illustration
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April 9, 2015
Three types of FSAs
1. Health Care FSA (HCFSA)
- For eligible health care expenses not paid by FEHB, FEDVIP or
any other insurance
$100 minimum election per year
$2,550 maximum election per year – this IS NOT a household limit,
your spouse may have a separate account
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April 9, 2015
Three types of FSAs (cont.)
2. Limited Expense Health Care FSA* (LEX HCFSA)
- For those enrolled in or covered by a High Deductible Health Plan
(HDHP) with a Health Savings Account (HSA)
*Limited to only eligible dental and vision expenses not paid by
FEHB, FEDVIP or any other insurance
$100 minimum election per year
$2,550 maximum election per year – this IS NOT a household limit,
your spouse may have a separate account
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April 9, 2015
Three types of FSAs (cont.)
3. Dependent Care FSA (DCFSA)
- For eligible non-medical day care expenses (childcare, eldercare)
so you (or your spouse) can work, look for work or attend school
full-time.
$100 minimum election per year
$5,000 maximum election per year – this IS a household limit and
includes any child care subsidy amounts and other FSA
dependent care accounts
Note: You (and spouse) must have earned income during the year,
even if looking for a job.
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April 9, 2015
Eligibility for FSAFEDS
Must be employed by an Executive Branch Agency or
another organization offering FSAFEDS
HCFSA
• Must be FEHB eligible
• Participants do not have to be enrolled in FEHB
LEX HCFSA
• Must be FEHB eligible
• Must be enrolled in or covered by a HDHP with a HSA
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April 9, 2015
Eligibility for FSAFEDS (cont.)
DCFSA
• Do not need to be FEHB-eligible or enrolled in FEHB
• Ineligible: intermittent employees expected to work fewer than
180 days/year
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April 9, 2015
Administrative Fees
All agencies pay the fees for their employees
Employees do not pay fees to participate
PUTS EVEN MORE MONEY IN YOUR POCKET!
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Eligible Expenses
USING FSAFEDS IS EASY AS PIE
HCFSA Eligible Expenses
Health care expenses not paid
by FEHB or FEDVIP or any other insurance
Expenses incurred by you and/or your
dependents* are eligible
*Tax dependents, including adult children, through the end
of the calendar year in which they turn 26
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Typical HCFSA Expenses
Co-payments, co-insurance and deductibles (but not
insurance premiums)
Chiropractic care
Contact lenses, solutions, cleaners and cases
Dental care (Including crowns, endodontic services,
implants, oral surgery, periodontal services, sealants,
etc.)
Diabetic supplies
First aid kits
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April 9, 2015
Typical HCFSA Expenses (cont.)
Flu shots
Foot care (e.g., athlete’s foot products, arch supports,
callous removers, etc.)
Hearing aids (including batteries)
Home diagnostic test and kits (e.g., cholesterol,
colorectal screenings, etc.)
Home medical equipment (wheelchairs *, oxygen,
respirators, etc.)
Massage Therapy
Orthodontia
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April 9, 2015
*With Letter of Medical Necessity
Typical HCFSA Expenses (cont.)
Over-the-counter non-medical items, such as, but not
limited to band aids, braces & supports and reading
glasses
Over-the-counter drugs and medicines WITH a
prescription – insulin is the exception
Physical therapy
Prescription drugs
Prosthetics
Psychiatric services and care
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April 9, 2015
Typical HCFSA Expenses (cont.)
Substance abuse treatment
Transportation expenses related to medical care
Vision care (including eyeglasses, prescription
sunglasses, refractions and vision correction
procedures)
For a complete list of eligible expenses, go to
www.FSAFEDS.com and click on “Eligible Expenses
Juke Box” under the “Quick Links” drop-down menu
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April 9, 2015
Ineligible HCFSA Expenses
Day care expenses
Cosmetic procedures (unless required to restore
appearance or function due to disease of illness)
Expenses you claim on your income tax return
Expenses reimbursed by other sources, such as
insurance
Fitness programs (unless medically necessary*)
*With Letter of Medical Necessity
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April 9, 2015
Ineligible HCFSA Expenses (cont.)
Hair transplants
Insurance premiums, including COBRA, Tricare, dental,
vision and long term care insurance
Over-the-counter drugs and medicines (except insulin)
unless prescribed by a physician
Physician retainer fees including boutique and
concierge practice membership fees
Weight loss programs and drugs for general well-being
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April 9, 2015
LEX HCFSA Eligible Expenses
ONLY Dental and Vision expenses
• Not paid by FEHB, FEDVIP or other insurance
Expenses incurred by you and/or your dependents
including:
• Dental – cleanings, fillings, crowns, orthodontics and over-thecounter items such as denture care products, but not toothpaste
• Vision – eyeglasses, refractions, vision correction procedures,
contact lenses, solutions, cleaners and cases
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April 9, 2015
DCFSA Eligible Expenses
 Day care expenses that let you (and your spouse):
• Work
• Look for work
• Attend school full-time
 For children under age 13 and any dependent who is mentally or
physically incapable of self-care
 Services cannot be provided by your dependent
 If you or a spouse have looked for work, you must have found a
job and have earned income at some point during the year. If a
spouse is a full-time student or incapacitated, he or she does
not to have any earned income during the year.
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April 9, 2015
Typical DCFSA Expenses
Child care at a daycare center, day camp, sports camp,
nursery school or by a private sitter
Late pick-up fees
Before and after-school care (but not tuition)
Adult day care expenses
Au Pair placement fees and weekly stipend
Expenses for a housekeeper who also cares for an
eligible dependent
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April 9, 2015
Ineligible DCFSA Expenses
Health care expenses
Education or tuition fees
Late payment fees
Overnight camps
Sports lessons, field trips, clothing
Transportation to/from care provider
Expenses incurred after March 15, 2015
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April 9, 2015
Benefit Period – HCFSA & LEX HCFSA
Employees must enroll each Open Season to
participate in the following benefit period
Enrollments do not carry over year-to-year
Benefit Period = January 1 through December 31, 2015
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April 9, 2015
Benefit Period - DCFSA
Employees must enroll each Open Season to
participate in the following benefit period
Enrollments do not carry over year-to-year
Benefit Period = January 1 through March 15 (of the
next year)
Salary contribution deducted equally
among pay dates during the calendar year (January 1
– December 31)
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April 9, 2015
Online Calculator
Interactive savings calculator available online at
www.FSAFEDS.com
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April 9, 2015
Enter salary and tax information
Enter FSAFEDS contribution amount
Enter estimated expenses
Calculate potential annual tax savings
Payroll Deduction Process
Employee identifies employing agency during
enrollment
FSAFEDS submits enrollment information to
BENEFEDS
BENEFEDS coordinates payroll deductions with your
payroll provider
BENEFEDS provides FSAFEDS with confirmed
allotment information. FSAFEDS updates participant
accounts.
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April 9, 2015
Availability of Funds
DCFSA: only amount of current account balance is
available for claim reimbursement
HCFSA & LEX HCFSA: total annual election is available
once agency information is confirmed
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April 9, 2015
“Use-or-Lose” Rule
You must forfeit money unspent at the end of the
Benefit Period
• IRS Rule (Section 125 of IRS Code)
• No exceptions
IMPORTANT DEADLINE!
• All claims must be submitted no later than April 30, 2016
to be eligible for reimbursement
Plan carefully when making elections
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April 9, 2015
Grace Period and Carryover *NEW*
CHANGES FOR 2015!
 Grace Period for DCRA Only
- Incur eligible expenses from January 1st – March 15th of the
following year; 14 ½ months to spend your election
- Your effective date for incurring expenses is determined by when
you enroll; Open Season elections begin January 1st.
 Carryover Account for HCFSA and LEX
- Incur eligible expenses from January 1st – December 31st
- “Carry over” up to $500 of unspent funds to the next year
- Any amount over $500 for which a claim is not incurred by
December 31st and submitted no later than April 30th will be
forfeited
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April 9, 2015
*NEW* Carryover Account
The Basics of Carryover
• The carryover option was announced in October 2013 as a new
option for health care FSA plans and impacts HCFSA/LEX only
• OPM chose to implement the new carryover option, which will
replace the grace period for HCFSA and LEX effective for 2015
• The carryover amount is limited to $500 and cannot ever exceed
this amount even if there is more than a $500 balance remaining
• You must re-enroll for the next Benefit Period to have access to
your carryover balance
• You must be an active employee making allotments through
December 31st
• The carryover cannot be waived, it will be set up automatically
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April 9, 2015
Tracking Account Balances
 Secure online account access via My Account Summary
www.FSAFEDS.com
 Call toll-free
1-877-FSAFEDS (372-3337)
TTY line: 1-800-952-0450
 Reimbursement Statement sent when claims processed
 Account Statements sent in January, March and October
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April 9, 2015
Federal Benefits Open Season Enroll
November 10 – December 8, 2014
Enroll early to avoid the last minute rush!
THAT’S MORE MONEY IN MY POCKET!
Enroll Online
Go to www.FSAFEDS.com
Follow the simple enrollment process
Receive personalized confirmation
• Will appear at the end of the enrollment process
• Will automatically be emailed to you if you provide an email
address during enrollment
• Will be available via My Account Summary
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April 9, 2015
Enroll By Telephone
FSAFEDS Benefits Counselors
• Toll-free 1-877-FSAFEDS (372-3337)
• TTY line: 1-800-952-0450
• Monday – Friday, 9:00 a.m. – 9:00 p.m. ET
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April 9, 2015
Enrollment Requirements
Must meet eligibility requirements for FSAFEDS
participation
Must agree to Electronic Funds Transfer (EFT)
• Fast reimbursement
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April 9, 2015
Enrollment Options – HCFSA Only
Paperless Reimbursement (PR)
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Available with many (not all) FEHB plans
Claim filed with FEHB plan
FEHB plan forwards out-of-pocket expenses directly to FSAFEDS
Often no out-of-pocket payment
Payment made directly to you from FSAFEDS account via
Electronic Funds Transfer
• Some dental and vision claims require manual submission –
please check the website
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April 9, 2015
PR - Participating Plans
Aetna Medical Plan
APWU Health Plan
Blue Cross and Blue Shield Service Benefit Plan
Compass Rose Health Plan (formerly ABP)
Foreign Service Benefit Plan
GEHA
Humana
Mail Handlers Benefit Plan
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April 9, 2015
PR - Participating Plans (cont.)
M.D. Individual Practice Association Inc.
NALC Health Benefit Plan
SAMBA Health Benefit Plan
UnitedHealthcare Insurance Co., Inc.
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April 9, 2015
PR - Participating Plans (cont.)
FEDVIP Plans
Aetna Dental Plan
Aetna Vision Plan
FEP BlueDental
FEP BlueVision
GEHA Dental
Humana Dental
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April 9, 2015
PR – Participating Plans (cont.)
Metlife Dental
United Concordia Dental
Vision Service Plan (VSP)
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April 9, 2015
New Employee Enrollment
New employees have 60 days to enroll
Must enroll before October 1
Otherwise, must wait for next Federal Benefits Open
Season
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April 9, 2015
Enrollment Changes
May change election(s) at any time during Open
Season
Qualifying Life Event (QLE) required outside Open
Season
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April 9, 2015
Qualifying Life Event
QLEs defined by IRS:
• Change in marital status
• Change in number of dependents
• Change in dependents’ eligibility
(e.g., child turning age 13)
• Change in cost or coverage (DCFSA only)
(e.g., day care fee increase)
• Change in employment or residence
• Change in military duty status
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April 9, 2015
Qualifying Life Event (cont.)
Requested change must be consistent with event that
prompts change
For example:
• Increase DCFSA or HCFSA election after birth or adoption of
child
• Decrease DCFSA election if spouse stays home with child
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April 9, 2015
Qualifying Life Event (cont.)
Must notify FSAFEDS of QLE from 31 days before to 60
days after event
To submit a request online, login to “My Account
Summary” and access the “Qualifying Life Event”
section.
Follow the simple instructions to submit your request
online
If you prefer to print a QLE form and save a copy for
your records, the QLE form is still available under
“Forms” at www.FSAFEDS.com
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Qualifying Life Event (cont.)
Fax or mail your form to FSAFEDS
You may submit your request either online or by form,
but you may not do BOTH
FSAFEDS will verify that event was a QLE and process
requested election change
QLE for birth/adoption of child is retroactive to date of
event; all others are prospective
Can only reduce elections to the amount already on
deposit or reimbursed
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April 9, 2015
Separation/Retirement
No further allotments
DCFSA balance, at separation, is available for eligible
expenses incurred until end of Benefit Period or until
balance is depleted
• No refund available
HCFSA terminates at separation
• Only expenses incurred before separation are eligible
for reimbursement
• No refund available
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April 9, 2015
Leave Without Pay (LWOP)
Agencies will not withhold allotments during non-pay
status
Options:
• Pre-pay elections through accelerated allotments
• Freeze account until return to pay status (Allotments
recalculated across remaining pay dates)
If LWOP is due to a QLE, participant can cancel or
reduce annual election, if consistent with the QLE
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April 9, 2015
Claims & Reimbursement
USING FSAFEDS IS EASY AS PIE
Claim Forms
Available online
www.FSAFEDS.com
Request by telephone or email
• 1-877-FSAFEDS (1-877-372-3337)
• TTY line: 1-800-952-0450
• FSAFEDS@adp.com
FAX or mail claim to FSAFEDS
• 1-866-643-2245 (toll-free, inside U.S. only) or
• 1-502-267-2233
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April 9, 2015
Required Documentation:
HCFSA and LEX HCFSA
Completed and signed claim form
AND
Explanation of Benefits form (EOB)
• From FEHB or FEDVIP or other insurance
• Must indicate type of service, date(s) of service, amount owed
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April 9, 2015
Required Documentation:
HCFSA and LEX HCFSA (cont.)
OR
Detailed receipts
•
Must indicate type of service, date(s) of service, amount paid
None, with Paperless Reimbursement
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April 9, 2015
Required Documentation: DCFSA
Completed and signed claim form
AND
Copies of bill or signed receipt
OR
Have provider complete Part III of claim form
Include provider’s tax ID or SSN on all claims
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April 9, 2015
Online Claim Submission (NEW!)
Go to www.FSAFEDS.com
Select “Online Claim Submission”
Enter and save claim information as directed
Upload appropriate claim documentation as a .PDF,
.JPG or .TIF file
Check the box and select the “I Certify” button to
submit the claim
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April 9, 2015
Reimbursement Reminders
Expenses are incurred on date of service, not when
expense is paid (Orthodontia is an exception)
Expense must be incurred AFTER effective date of
enrollment AND during the Benefit Period
All claims must be postmarked or faxed by April 30,
following end of Benefit Period
Unclaimed funds are forfeited and used to offset administrative
costs of the FSAFEDS program
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April 9, 2015
Contact Us
 www.FSAFEDS.com
 FSAFEDS@adp.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
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April 9, 2015