1. Flexible Spending Accounts Presented by:
Welcome to the Flexible Spending Account presentation.

2. What are FSAs? Flexible Spending Accounts Year-to-year account
Set aside pretax dollars
Pay for current year expected expenses
May enroll in any health insurance plan
Three Accounts:
General-Purpose Health Care FSA
Deductibles, Co-Pays, Office Visits, Medical, Dental, Vision
Limited-Purpose Health Care FSA (HSA compatible)
Dental and Vision Expenses only
Dependent Care FSA
Daycare, after-school care, pre-school, nursery school
To begin, we’ll contrast what FSAs are and then what HSAs are….and then talk about each program.
So let’s start with FSAs – What are they?
The key word here is “spending.” This is a year-to-year account designed to allow you to set aside pretax dollar to pay for current year expected expenses. The idea is to fund only for the current year’s expenses, spend the money, and re-enroll again next year.
You can enroll in any insurance plan either here with your employer; or through a spouse.

3. How does it work? 1. Estimate expenses 3. Incur eligible expenses
2. Make pretax contributions
3. Incur eligible expenses
4. Submit claim
5. Get reimbursed!

4. Flexible Spending Accounts can give you a pay raise! Don’t lose out!
Review slide.

5. IRS Regulated FSA Rules
Enroll every year with a new election
Spend all funds during the year
Expenses must be incurred during your period of coverage, or plan year
Do not have to be covered under employer health insurance
Use to pay expense for spouse and dependent children
Election remains in effect for the plan year unless you experience a qualified status change
Can access all health care funds anytime during the year
Funds remaining at year end are forfeited
Carryover up to $500 of health care funds

6. How to avoid forfeitures
It’s easy!
Plan for predictable and recurring expenses
Expenses you know you will have during the year
Review prior year expenses as a guide
Be conservative
Use online tools at
Expense estimator
Eligible expense listing
FSAStore.com resource for OTC products
Remember, you can carry over up to $500 of health care funds!

7. Health Care Expenses

8. General-Purpose Health Care FSA - $2,700
Rx & Office visit Co-pays, Deductibles, X-rays, Lab, Hospital, Mileage to/from health care providers
OTC-Band-Aids, Sunscreen, Braces, First aid supplies, Pill holders, Blood pressure monitors, thermometers, diabetic supplies
Vision exams, eyeglasses, prescription sunglasses, contact lenses/solutions, reading glasses, lasik surgery
Dental exams, x-rays, fillings, orthodontia, crowns, bridges, dentures & adhesives, occlusal guards, implants
Hearing exams, hearing aids and batteries

9. Limited-Purpose Health Care FSA - $2700 Compatible with HSAs
LPFSA Health Care FSA
Vision Expenses
exams, eyeglasses, prescription sunglasses, contact lenses/solutions, reading glasses, laser eye surgery
Dental Expenses
exams, x-rays, fillings, orthodontia, crowns, bridges, dentures & adhesives, occlusal guards, implants

10. Over-the Counter Items
Let’s take a look at the over-the-counter items that are eligible.
As you’ll see, some items do not require a prescription, such as ….. (read a few)
Drugs and medicines, such as allergy medicines, cold/flu medicines, pain relief drugs are eligible if you have a prescription from your doctor.

12. Plan Year Election Available Anytime
Example for calendar year plan
Contribute $100 per month = $1,200 plan year
March 15 you incur $500 expense
Year-to-date contributions = $300
Plan pays $500

13. Ineligible Health Care Expenses
Services not provided yet; pretreatment estimates
Cosmetic treatments or medications
General health and well-being
Illegal operations
Expenses paid by insurance
Diapers, maternity clothes
Insurance Premiums
Dancing, swimming lessons
Holistic, natural remedies, vitamins
Warranties

14. Sample planning worksheet
My expected expenses for my family
Annual dollar amount
Monthly prescription copays – 2 at $30 each
$720
Office visit copays – 2 at $50 each
$100
Dental – crown
$500
Vision – eyeglasses
$350
Vision – prescription sunglasses
$400
Vision – contact lenses
$300
Over-the-counter items – sunscreen, bandages, contact lens solutions
Mileage for driving to and from health care provider locations – 300 $.20 per mile
$60
MY TOTAL EXPECTED EXPENSES
$2,530

15. Dependent Care Expenses

16. Dependent Care - $5,000* Dependent Care FSA
Babysitting while you work
Preschool or nursery school for young children
Before school or after school care
Day camps
For children under age 13
For child age 13+ or adult if not capable of self-care
*$2,500 if married and filing separate income tax returns.

17. Plan Pays up to Cash Balance
Example for calendar year plan
Contribute $300 per month = $3,600 plan year
January 31 you incur $500 expense
Year-to-date contributions = $300
Plan pays $300
Plan pays $200 balance after next contribution is made

18. Compare FSA to Tax Credit
Dependent Care FSA
$5,000 for one or more dependents
Tax Credit
Limited to $3,000 for one dependent; or $6,000 for two or more dependents
Consult tax advisor to determine best option
Both you and dependent care provider must report on personal tax return

19. Ineligible Dependent Care Expenses
Services not provided yet
Educational or tuition expenses
Kindergarten or higher education
Overnight camp expenses
Services provided while you are on vacation, holidays, leave-of-absence
Divorce situations – only expenses incurred by custodial parent are eligible
Expenses in excess of $5,000 per family per calendar year

20. Sample planning worksheet
Month
Type of expense
Monthly amount
January
After school care
$200
February
March
April
May
June
Child going to grandparents $0
July
Summer day camp
$500
August
Child going to grandparents and family going on vacation
September
October
November
After school care plus daycare for new baby
$800
December
After school care plus daycare for new baby for partial month due to Christmas vacation
TOTAL
$3,200

21. Claim Filing Options

22. IRS Required Claim Substantiation
IRS requires you to:
Certify that the expenses are eligible and that you have not been reimbursed and will not seek reimbursement under any other source
Provide third-party documentation to substantiate the details about the expenses you have incurred
Claim Form
Required for manual submissions sent by mail or faxed
Not required for online or mobile claim filing nor debit card

23. Multiple Claim Filing Options
ASIFlex Claims
Online
Mobile App

24. ASIFlex Mobile App Free! Video tutorial on asiflex.com
Use on smart phone or tablet
Snap a picture of documentation
Submit right from the
pharmacy
doctor’s office
dental or vision office
Check your balance 24/7!

25. ASIFlex Online Account Detail
Register to view your online account statement
Read secure messages
Submit claims

26. ASIFlex Card – What is it?
Health Benefit Card
IRS regulations govern use of cards
Allows you to pay directly from your health FSA account
Sign for credit transaction
Enter PIN for debit transaction
Accepted at healthcare and retail providers that accept VISA®
Not accepted at providers not recognized as health care providers/merchants
Use of the card is not paperless!
The ASIFlex Card is a limited-use benefit card that will allow you to pay the merchant or health care provider directly from your health FSA account.
The IRS has specific regulations governing use of the card and the State and ASIFlex are responsible for maintaining compliance of the program.
You will be able to sign for the transaction, or you can enter a PIN for the transaction.
The card is accepted at health care and retail providers that accept VISA. It is not accepted at restaurants, gas stations, department stores, etc.

27. How does it work? At point-of-sale, present card for payment
Advantage is that you don’t have to use cash or another credit card – it is an easy way to pay
Merchant will process the transaction
Card company reports to ASIFlex the provider/ merchant name, date of transaction, dollar amount
NOTE: You may need to provide additional documentation showing the patient name, date of service and type of service/product
Use of the card is not paperless!
At the point-of-sale, simply present your card for payment. The advantage of the card is that you do not have to pay with cash or personal credit card. The merchant will process the transaction; the card company will then report the transaction to ASIFlex.
Note that the card company can only provide the merchant name, date of transaction and dollar amount.
They do not have the type of service, date of service or patient name, so, in many cases ASIFlex will request this additional documentation from you.
Use of the card is not paperless and documentation is required in many cases!

28. How do I use the card? It’s easy – SWIPE – ASK – GO!
Present card for payment – swipe the card
Ask for an itemized statement of the service or supply provided to you
Then, go! Be sure to save the itemized statement and if requested, provide to ASIFlex upon request.
Use of the card is not paperless!
Remember – Use of the Card is not Paperless!
IRS rules require you to submit documentation of the transaction afterwards. This may include hospital charges, lab work, dental, vision, etc.
The card is not “SWIPE and GO.”
First you present the card for payment and swipe for the transaction.
Next, you must ASK FOR an itemized statement. This is your responsibility – you must ask as many providers will not automatically provide this to you.
NOTE: The credit card receipt cannot be used for documentation.
Once you have the itemized statement in hand, you are ready to go! Just keep a copy of the itemized statement and, if requested, submit to ASIFlex.

29. How do I use the card?
Save all itemized provider/merchant receipts (NOT the credit card receipt)
Save all insurance payer Explanation of Benefits (EOB)
Submit documentation upon request – it’s the law!
Know your balance
Use at health care providers (note that some teaching hospitals, e.g., may not be recognized as they code terminals as “educational”)
Check your messages under your account at asiflex.com
Submit documentation upon request
Use of the card is not paperless!
When using the card, be sure to save all itemized receipts and insurance payer EOBS (not credit card receipts).
Submit documentation if requested – remember it’s the law!
Know your balance. If you have only $20 left in your account and swipe the care for $25, the card will decline, but the VISA system nor the merchant will know why.
Use the card only at health care providers.
And if you receive a request for documentation, respond right away. Read your messages in your secure message center at

30. How do I provide information?
ASIFlex will notify you if additional information is required
Submit online, via mobile app, fax or mail
IRS requires documentation for all transactions except if the transaction is for:
Copays that match the employer plan you are enrolled in
Identified recurring expenses at the same provider, same amount each month (e.g. orthodontia)
Transactions at certified merchants who maintain an inventory system of eligible items (retail stores, drugstores, pharmacy)
All other expenses for copays under other plans, and any medical, dental, vision require documentation
Use of the card is not paperless!
Only provide documentation to ASIFlex upon request. ASIFlex will notify you by /text (depending on how you requested we communicate with you) if documentation is required. There are a few situations that typically do not require documentation:
A flat-dollar co-pay that matches the employer-sponsored plan you are enrolled in. (Not a spouse plan.)
A recurring expense that is for the same provider, same dollar amount each month. A good example would be orthodontia.
A transaction at a retail merchant (such as Walgreens, Walmart, Target, etc.) who inventories health care products that are eligible (such as Band-Aids, sunscreen, contact lens solutions, etc.).
All other transactions will require documentation. This includes co-pays under any plan other that the employer’s plans such as a spouse plan through another employer; as well as any medical expenses incurred at hospitals, labs, etc., dental expenses and vision expenses.

31. How does ASIFlex notify me?
Up to three requests are sent by /text alert and posted to secure messages in your online account
Letter 1 – Sent approximately 5 days following transaction
Letter 2 – Sent after 21 days after Letter 1 and advises card may be inactivated
Letter 3 – Sent after 21 days after Letter 2; temporary deactivation notice
If documentation not provided, IRS required the card be temporarily deactivated
To remedy, simply provide documentation and card will be activated
If documentation lost, you can write a check back to the plan or submit a substitute claim
Use of the card is not paperless!
If documentation is required, ASIFlex will send three requests to you.
Letter 1 is sent approximately 3-5 days after ASIFlex receives notice of the transaction.
If you do not respond, Letter 2 is sent 21 days after Letter 1 to advise that documentation is needed, and letting you now that the card may be deactivated.
If you still do not respond, Letter 3 is sent 21 days after Letter 2 to advise that documentation is needed, and the card is temporarily deactivated.
All you need do is provide the documentation and the card can be activated again.
If you are unable to substantiate the transaction, you can write a check back to the plan, or submit a substitute claim.
The IRS regulates FSA plans and use of the card, so these steps are required under IRS regulations.

32. Claim Documentation Must include:
Who (for whom is the service being provided)
What (a description of the service)
Where (name/address of provider providing the service)
When (date the service was provided, regardless when paid)
How much (dollar amount you owe)
IRS regulations require employees to provide documentation to substantiate claims and certain card transactions as just described.
ASIFlex also provides an educational video at explaining the documentation requirements “How to File Claims.”
These requirements are the same regardless of the method of claim submission or claim payment.

33. What type of documentation is required?
Type of Expense
Documentation Needed
If covered by insurance
Medical, Dental, Vision
Insurance payer explanation of benefits (EOB) or Itemized statement
NOTE: Submit to insurance first
If not covered by insurance
Itemized Statement
Prescriptions
Pharmacy receipt , printout from pharmacy, or itemized mail-order receipt
OTC Drugs/Medicines
Physician prescription and itemized merchant receipt
NOTE: Rx must be dated prior to or on the date of purchase.
OTC Medical Supplies/Items
Itemized merchant receipt
NOTE: Do not submit credit card receipts, paid on account or balance forward statements, cancelled checks, etc. Use of the card is not paperless!
Here are the types of documentation required….(read from slide).
As a good consumer, if your services may be covered under your insurance plan, have the provider submit the expenses to your insurance plan first.
Then, the insurance plan will process the claim and send you an Explanation of Benefits. This explanation describes how much insurance paid, and the amount that you owe. You will also receive a bill from your health care provider and you should review both the bill and the EOB to be sure they match. You can then use the card to pay the amount you owe for that service. If ASIFlex requests documentation, be sure to submit the EOB.

34. Unacceptable Documentation
Credit card receipts
Balance forward, paid-on-account statements, previous balance due statements
Cancelled checks
Pre-treatment estimates; services not yet performed
Health statements
The IRS rules do not allow credit card receipts,….read slide…

35. SAMPLE EOB

36. SAMPLE Itemized Statement
If you do not have insurance, you can request an itemized statement from the provider. It must show the provider name, patient name, date of service (regardless if or when you paid), description of the service, and the dollar amount charged.
Note that providers do not always automatically provide this information so just ask for it!

38. Your online account will show which card transactions require documentation with yellow, pink or red highlighting.
You can submit the documentation online, through the mobile app, or via fax or mail.

39. www.asiflex.com/debitcards ASIFlex Wallet Card

41. GO GREEN! Sign up for email or text alerts!
Avoid paper notices and delayed mail
Have payment sent to your bank!
Avoid the hassle of paper checks
Avoid delayed mail
File claims with the Mobile App or online!
It’s quick! It’s easy! It results in rapid claim payments!
Have dependent care providers sign claim form!
No other document is needed!

42. Online Resources www.asiflex.com
Access your FSA account detail
Review messages sent to you
Manage your personal settings
ASIFlex Card information
Extensive eligible/ineligible expense listing
FSA Store - thousands of eligible FSA products
Frequently Asked Questions
Expense Estimator & Tax Savings Calculator
Educational videos
IRS Forms & Publications

43. Important Dates Claims must be incurred: Deadline to Submit Claims:
MM/DD/YEAR through MM/DD/YEAR
Incurred means that you have actually had the service provided, or that you have secured the product, that gave rise to the expense
Deadline to Submit Claims:
MM/DD
Don’t wait until the last minute as you may miss the date!

44. 7 a.m. to 7 p.m. CT Monday – Friday
Customer Service
Website
Phone
Address
PO Box 6044
Columbia, MO 65205
7 a.m. to 7 p.m. CT Monday – Friday
9 a.m. to 1 p.m. CT Saturday

45. Thank you!