1. FSAFEDS The Federal Flexible Spending Account Program

2. FSAFEDS & Healthcare Reform

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
Key Benefit: Pay Less Taxes - Save Money!

4. FSAFEDS At-a-Glance 318,000+ FSAFEDS Participants
306,000+ Health Care FSA accounts
$2, average annual HCFSA election
90% of 2009 participants re-enrolled for 2010

5. FSAFEDS At-a-Glance (cont.)

6. Health Care Reform & FSAFEDS
The Patient Protection and Affordable Care Act (PPACA) was signed into law on March 23, 2010
Over-the-counter (OTC) medicines and drugs (except insulin) are only eligible for reimbursement, when prescribed by a physician, effective January 1, 2011
Change affects all FSA programs

7. Health Care Reform (cont.)
OTC expenses have not “gone away”
Many OTC items, such as bandages, nasal strips and contact lens solutions are still eligible WITHOUT a prescription
Those that require a prescription are STILL eligible for reimbursement
These include acne treatments, allergy and cold medicines and antacids
See OTC Quick Reference Guide at for more information

8. Health Care Reform (cont.)
Claims for OTC drugs and medicines MUST be accompanied by a copy of a physician’s prescription
OTC expenses incurred during the Grace Period (January 1 – March 15, 2011) follow the new guidelines
OTC expenses incurred in 2010, but not submitted until after January 1, 2011 (but before April 30) are not affected
Plan your 2011 election carefully if you normally include OTC expenses in your election

9. Health Care Reform (cont.)
Health care expenses for adult children, through the end of the calendar year in which they turn 26, are eligible for reimbursement through a HCFSA
A child includes a son, daughter, stepchild, adopted child, eligible foster child or a child who is placed with the employee for legal adoption
Includes adult children who are married
Do not need to reside with participant
Do not need to be financially dependent on the participant
Does not include spouses of adult dependents

10. Federal Benefits Open Season November 8 – December 13, Enroll early to avoid the last minute rush!

11. Contact Us www.FSAFEDS.com FSAFEDS-HR@shps.com
TTY line:
Benefits Counselors are available Monday through Friday, 9:00 a.m. to 9:00 p.m., ET