1. THE FEDERAL FLEXIBLE SPENDING ACCOUNT PROGRAM
FSAFEDS
THE FEDERAL FLEXIBLE SPENDING ACCOUNT PROGRAM
MORE MONEY IN YOUR POCKET!

2. Program Overview
THAT’S MORE MONEY IN MY POCKET!

3. 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!
March 22, 2017

4. *A few exceptions, discussed later
How does FSAFEDS work?
Estimate your expenses and determine your annual contribution from salary, pre-tax
Enroll in a Health Care, Limited Expense Health Care or Dependent Care FSA
Incur eligible expenses
Submit your claims*
Get reimbursed FAST
*A few exceptions, discussed later
March 22, 2017

5. 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!
March 22, 2017

6. Savings Illustration
March 22, 2017

7. Three types of FSAs 1. Health Care FSA (HCFSA)
- For eligible health care expenses not paid by FEHB, FEDVIP or any other insurance
$250 minimum election per year
$2,500 maximum election per year – this IS NOT a household limit, your spouse may have a separate account
March 22, 2017

8. 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
$250 minimum election per year
$2,500 maximum election per year – this IS NOT a household limit, your spouse may have a separate account
March 22, 2017

9. 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.
$250 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.
March 22, 2017

10. Eligibility for FSAFEDS
Must be employed by an Executive Branch Agency or another organization offering FSAFEDS
March 22, 2017

11. Eligibility for FSAFEDS (cont.)
HCFSA
Must be FEHB eligible
Participants do not have to be enrolled in FEHB
March 22, 2017

12. Eligibility for FSAFEDS (cont.)
LEX HCFSA
Must be enrolled in or covered by an HDHP with an HSA under the FEHB
March 22, 2017

13. 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
March 22, 2017

14. PUTS EVEN MORE MONEY IN YOUR POCKET!
Administrative Fees
All agencies pay the fees for their employees
Employees do not pay fees to participate
PUTS EVEN MORE MONEY IN YOUR POCKET!
March 22, 2017

15. Eligible Expenses
USING FSAFEDS IS EASY AS PIE

16. 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
March 22, 2017

17. 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
March 22, 2017

18. 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.)
Orthodontia
*With Letter of Medical Necessity
March 22, 2017

19. 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
March 22, 2017

20. 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 and click on “Eligible Expenses Juke Box” under the “Quick Links” drop-down menu
March 22, 2017

21. 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 tax income return
Expenses reimbursed by other sources, such as insurance
Fitness programs (unless medically necessary*)
*With Letter of Medical Necessity
March 22, 2017

22. 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
Expenses incurred after March 15, 2015
March 22, 2017

23. 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-the-counter items such as denture care products, but not toothpaste
Vision – eyeglasses, refractions, vision correction procedures, contact lenses, solutions, cleaners and cases
March 22, 2017

24. 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.
March 22, 2017

25. 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
March 22, 2017

26. 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
March 22, 2017

27. Benefit Period
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)
March 22, 2017

28. Online Calculator
Interactive savings calculator available online at
Enter salary and tax information
Enter FSAFEDS contribution amount
Enter estimated expenses
Calculate potential annual tax savings
March 22, 2017

29. 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.
March 22, 2017

30. 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
March 22, 2017

31. “Use-or-Lose” Rule
You must forfeit money unspent at the end of the Benefit Period (March 15th)
IRS Rule (Section 125 of IRS Code)
No exceptions
You must file claims by April 30th following the end of the Benefit Period
Plan carefully when making elections
March 22, 2017

32. Extra 2 ½ Months
If you enroll during Open Season, you have from January 1 to March 15 of the next year to incur eligible expenses
14 ½ months to spend your annual election
You forfeit any FSA money not spent on eligible expenses by March 15, 2015
You have until April 30, 2015 to file claims
March 22, 2017

33. Tracking Account Balances
Secure online account access via My Account Summary
Call toll-free
1-877-FSAFEDS ( )
TTY line:
Reimbursement Statement sent when claims processed
Account Statements sent in January, March and October
March 22, 2017

34. Federal Benefits Open Season Enroll November 11 – December 9, 2013 Enroll early to avoid the last minute rush!
THAT’S MORE MONEY IN MY POCKET!

35. 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 ed to you if you provide an address during enrollment
Will be available via My Account Summary
March 22, 2017

36. Enroll By Telephone FSAFEDS Benefits Counselors
Toll-free FSAFEDS ( )
TTY line:
Monday – Friday, 9:00 a.m. – 9:00 p.m. ET
March 22, 2017

37. Enrollment Requirements
Must meet eligibility requirements for FSAFEDS participation
Must agree to Electronic Funds Transfer (EFT)
Fast reimbursement
March 22, 2017

38. Enrollment Options – HCFSA Only
Paperless Reimbursement (PR)
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
March 22, 2017

39. 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
March 22, 2017

40. PR - Participating Plans (cont.)
M.D. Individual Practice Association Inc.
NALC Health Benefit Plan
SAMBA Health Benefit Plan
UnitedHealthcare Insurance Co., Inc.
March 22, 2017

41. PR - Participating Plans (cont.)
FEDVIP Plans
Aetna (Dental)
GEHA (Dental)
United Concordia (Dental)
FEP Blue Vision (Vision)
Vision Service Plan (Vision)
March 22, 2017

42. New Employee Enrollment
New employees have 60 days to enroll
Must enroll before October 1
Otherwise, must wait for next Federal Benefits Open Season
March 22, 2017

43. Enrollment Changes
May change election(s) at any time during Open Season
Qualifying Life Event (QLE) required outside Open Season
March 22, 2017

44. 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
March 22, 2017

45. 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
March 22, 2017

46. 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
March 22, 2017

47. 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
March 22, 2017

48. 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
March 22, 2017

49. 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
March 22, 2017

50. Claims & Reimbursement
USING FSAFEDS IS EASY AS PIE

51. Claim Forms Available online www.FSAFEDS.com
Request by telephone or
1-877-FSAFEDS ( )
TTY line:
FAX or mail claim to FSAFEDS
(toll-free, inside U.S. only) or
March 22, 2017

52. 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
March 22, 2017

53. 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
March 22, 2017

54. 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
March 22, 2017

55. Online Claim Submission (NEW!)
Go to
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
March 22, 2017

56. 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
March 22, 2017

57. Contact Us www.FSAFEDS.com FSAFEDS@adp.com 1-877-FSAFEDS (372-3337)
TTY line:
Benefits Counselors are available Monday through Friday, 9:00 a.m. to 9:00 p.m., ET
March 22, 2017