1. Flexible Spending Accounts (FSA) To proceed to the next slide, click the “NEXT” buttons as shown here:
Welcome to another installment of the LSS Benefits Orientation recorded presentation series. This presentation focuses on our flexible spending account benefits! I’m Kaitlin, and I’m Denis. This presentation will focus on all the components and features of our FSA benefits that full-time and weekend option employees are eligible to take part in. Part-time employees may also become eligible for these benefits if they average 30 or more paid hours during an ACA measurement period.
Remember that on each slide of this presentation, you’ll see a “NEXT” button. Click on that button to move to the next slide when you’re ready. Also, please be sure to read all the information on each slide, as well as listen to our voice narration. Sometimes we’ll mention information not shown in the text, and sometimes there’ll be text on the slide we won’t read.

2. Flexible Spending Accounts (FSA) “Health Care” & “Dependent Care”
A way for you to set aside money on a tax-free basis for health care and/or dependent care expenses
Health Care FSA: Covers out-of-pocket healthcare expenses, such as prescription drugs, co-pays, doctor visits, glasses, chiropractic, exams, dental care and more.
Who can use the funds? The FSA account can be used for the healthcare expenses of yourself and your tax dependents.
Dependent Care FSA: Covers expenses associated with child day care, after- school care. school camps, adult daycare, etc.
Who can use the funds? The Dependent Care account can be used for children under age 13 who are claimed as qualifying dependents and disabled spouses or dependents.
Click here for a complete list of eligible expenses
A flexible spending account, or F.S.A., is a way for you to save money on a pre-tax basis by setting aside money you believe you’ll spend in the upcoming year for health care and/or dependent care expenses. There are two types of FSA’s – one for healthcare expenses and the other for childcare or elder care expenses. You can enroll in either or both FSA’s whether you’re enrolled in an LSS medical plan or not – it’s not tied to our medical benefits really. If you know you’re going to spend a certain amount of money each year on healthcare for you and your tax dependents, or on childcare, it really is worth your time to take advantage of this neat tax-savings benefit. Not only will it save you money, it’ll help in saving money for the expenses you know you’re going to have to pay too. This slide shows you some examples of what you can use a flex spending account for. In the health care FSA you can use your account to cover expenses such as co-pays, deductibles, glasses, prescriptions and more. The FSA can be used for expenses for both you and your tax dependents. A Dependent care FSA allows you to pay for certain expenses such as child daycare, after school care and adult daycare expenses. This account can be used for children under the age of 13 who are claimed as qualifying dependents and disabled spouse or dependents.

3. Flexible Spending Accounts (FSA) “Health Care” & “Dependent Care”
Contributions & Claims:
Whatever amount you sign up for at the beginning of a calendar year will be deducted in equally-sized deductions 26 times per year; If you’re enrolling mid-year, your election will be divided by the remaining number of pay periods in that year
Healthcare FSA:
You may contribute up to the $2,700 limit in 2019
Allows you be reimbursed for eligible expenses right away, even before you’ve contributed enough money to cover the reimbursement costs
You can pay for HC expenses using a Discovery debit card that’s provided upon enrollment, or request reimbursement afterwards via check or direct deposit
Dependent Care FSA:
You may contribute up to the $5,000 limit in 2019
Requires you to have contributed enough money to cover each reimbursement of expenses before a reimbursement is made
Reimbursements are made though checks mailed to your home or via direct deposit
If you re-enroll in an FSA in the following year, you receive the benefit of a 2 ½ Month Grace Period. This grace period allows you to spend remaining FSA dollars through March 15 of the following year. All claims must be submitted by no later than March 30th of the following year. (This grace period applies to either FSA type.)
Whatever amount you sign up for at the beginning of a calendar year will be deducted in equally-sized deductions 26 times per year; This is different than our other LSS benefits, which are only 24 times per year (or twice per month. You may contribute up to the $2,700 limit into the healthcare FSA, and the healthcare fsa allows you be reimbursed for eligible expenses right away, even before you’ve contributed enough money to cover the reimbursement costs. Also with the health care fsa, you can pay for expenses using a Debit Card provided by discovery benefits upon enrollment. With the Dependent Care FSA, you may contribute up to the $5,000 per year. Unlike the healthcare fsa, you must have contributed enough money to cover each reimbursement of expenses before a reimbursement is made. Reimbursements are made though checks mailed to your home or deposited via direct deposit (whichever method you choose) as you have the money deposited to cover the expenses submitted through claims. Also, with both types of FSA’s, if you re-enroll in the FSA again the following year, you receive the benefit of a 2 ½ Month Grace Period. This grace period allows you to spend remaining FSA dollars through March 15 of the following year.

4. FSA Tax Savings An example of the tax savings you could see…
A couple work outside the home and together they earn $50,000/year. Let’s suppose they elect a Healthcare FSA in the amount of $2,000 or $166.67/month. Let’s also assume they pay 20% in income taxes.
With an FSA
Without an FSA
Gross Monthly Salary
$4,166.67
Monthly FSA Contribution
$166.67
n/a
Taxable Income
$4,000.00
Taxes (20% tax rate)
$800.00
$833.33
Net pay
$3,200.00
$3,333.34
Post tax medical expenses
Monthly Income Remaining
$3,166.67
And here’s an example of how much you could be saving using a healthcare flex spending account. In this example we have a couple who make $50,000 per year or $4, per month. They have estimated their annual healthcare costs to be 2,000 dollars per year and so they contribute $ per month into their FSA. This reduces their tax liability by that same amount. You can see that even though both scenarios include the couple spending $ per month on health care costs, the couple that sets this money aside pre-tax saves $33 per month in lower taxes. When you add it up throughout the year, that comes to savings of $400 just for thinking ahead and planning with an FSA.
This couple, spending the same amount of $ on healthcare in both circumstances, has an extra $33.33 remaining at the end of the month with an FSA than they would without an FSA because of tax savings. That’s an extra $400 per year!

5. Flexible Spending Accounts (FSA) – Tax Savings
A few things to note…
Don’t forget that Alex can help you with FSA’s too (in addition to just the medical plan selection)
In order to continue an FSA from year to the next, you must re-enroll during Annual Enrollment. One year’s election for FSA will not roll over in to the next year
If you separate employment with LSS, you can elect to continue your Healthcare FSA participation through COBRA and continue to submit claims for reimbursement. If you do not though, you can not submit any claims for services after your last day of employment.
Here are just a few additional things to note as you decide whether or not you’d like to enjoy the tax and savings benefits from the FSA’s… Alex can help you, you must always re-enroll each year to continue from year to the next, and you’ll want to consider COBRA if you ever leave employment with LSS and want to submit additional claims for reimbursement.
For more information visit the LSS Benefits site at

6. Additional Resources
Have more questions beyond what’s explained in this video?
Visit the LSS Benefits
The site provides detailed information regarding all benefits offered by LSS
Contact your Human Resources representative(s)
Your local HR team is available to answer any questions you may have and/or assist you in the enrollment process within Workday
Contact the vendor directly
A complete list of contact information is posted on the LSS Benefits Website
For more information, please visit our benefits website, contact any of the benefits vendors or most importantly, contact your HR representative. Your HR team is here to help answer any questions you may have. We also want to hear your feedback. Your feedback about LSS benefits is a driving force behind how we can make our benefits better.