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

2. 2015 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!
April 16, 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
April 16, 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!
April 16, 2017

6. Savings Illustration
April 16, 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
$100 minimum election per year
$2,550 maximum election per year – this IS NOT a household limit, your spouse may have a separate account
April 16, 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
$100 minimum election per year
$2,550 maximum election per year – this IS NOT a household limit, your spouse may have a separate account
April 16, 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.
$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.
April 16, 2017

10. 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 enrolled in or covered by a HDHP with a HSA
April 16, 2017

11. 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
April 16, 2017

12. 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!
April 16, 2017

13. Eligible Expenses
USING FSAFEDS IS EASY AS PIE

14. 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
April 16, 2017

15. 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
April 16, 2017

16. 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
*With Letter of Medical Necessity
April 16, 2017

17. 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
April 16, 2017

18. 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
April 16, 2017

19. 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
April 16, 2017

20. 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
April 16, 2017

21. 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
April 16, 2017

22. 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.
April 16, 2017

23. 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
April 16, 2017

24. 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
April 16, 2017

25. 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
April 16, 2017

26. 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)
April 16, 2017

27. 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
April 16, 2017

28. 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.
April 16, 2017

29. 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
April 16, 2017

30. “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
April 16, 2017

31. 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
April 16, 2017

32. *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
April 16, 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
April 16, 2017

34. 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!

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
April 16, 2017

36. Enroll By Telephone FSAFEDS Benefits Counselors
Toll-free FSAFEDS ( )
TTY line:
Monday – Friday, 9:00 a.m. – 9:00 p.m. ET
April 16, 2017

37. Enrollment Requirements
Must meet eligibility requirements for FSAFEDS participation
Must agree to Electronic Funds Transfer (EFT)
Fast reimbursement
April 16, 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
April 16, 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
April 16, 2017

40. PR - Participating Plans (cont.)
M.D. Individual Practice Association Inc.
NALC Health Benefit Plan
SAMBA Health Benefit Plan
UnitedHealthcare Insurance Co., Inc.
April 16, 2017

41. PR - Participating Plans (cont.)
FEDVIP Plans
Aetna Dental Plan
Aetna Vision Plan
FEP BlueDental
FEP BlueVision
GEHA Dental
Humana Dental
April 16, 2017

42. PR – Participating Plans (cont.)
Metlife Dental
United Concordia Dental
Vision Service Plan (VSP)
April 16, 2017

43. New Employee Enrollment
New employees have 60 days to enroll
Must enroll before October 1
Otherwise, must wait for next Federal Benefits Open Season
April 16, 2017

44. Enrollment Changes
May change election(s) at any time during Open Season
Qualifying Life Event (QLE) required outside Open Season
April 16, 2017

45. 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
April 16, 2017

46. 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
April 16, 2017

47. 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
April 16, 2017

48. 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
April 16, 2017

49. 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
April 16, 2017

50. 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
April 16, 2017

51. Claims & Reimbursement
USING FSAFEDS IS EASY AS PIE

52. Claim Forms Available online Request by telephone or email
Request by telephone or
1-877-FSAFEDS ( )
TTY line:
FAX or mail claim to FSAFEDS
(toll-free, inside U.S. only) or
April 16, 2017

53. 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
April 16, 2017

54. 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
April 16, 2017

55. 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
April 16, 2017

56. 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
April 16, 2017

57. 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
April 16, 2017

58. 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
April 16, 2017