Flexible Spending & Health Savings Accounts
Flexible Spending & Health Savings Accounts
Take advantage of tax-free spending
Flexible Spending Accounts (FSAs) offer a great way to save money on both health care and dependent daycare expenses. Because your FSA account is funded with pre-tax dollars, you can save between 10% and 30% on eligible expenses. In 2024, we’re working with BenePass and adding an option for a limited purpose FSA that can be paired with a Health Savings Account and used for dental and vision costs only. If you’ve elected to re-enroll, you may continue using the same debit card. If you are a new participant, you will receive a debit card mailed to the home address on file.
FSA Plan Highlights:
• Annual enrollment is required.
• As funds are used, a mobile app provides an easy option to snap a picture of the receipt for submission, as required by IRS guidelines.
• New FSA card from BenePass available in January.
• Keep your old Navia FSA card for hold over care during the first-of-the-year grace period.
• Remember: Flexible Spending Accounts do not automatically roll over.
FSAs are easy to use. Here’s how:
Contribute
Estimate annual out-of-pocket expenses, enroll and contribute
Spend
Pay for qualifying expenses as you normally would and keep your receipts
Get reimbursed
Submit your claim to Administrative Solutions for reimbursement
There are two types of Flexible Spending Accounts:
Heath Care Spending Account
A Health Savings Account (HSA) is a triple tax-free account that can be used for qualified medical expenses. It is triple tax-free because your contributions, interest and earnings from investments, and withdrawals from the account are not subject to regular income and payroll taxes. To be eligible, you must be enrolled in an HDHP Plan, not enrolled in Medicare and you cannot be claimed as a dependent on someone else’s tax return. You can contribute anywhere from $130 to $3,050 per year to pay for out-of-pocket health care expenses for you and your tax dependents (even if they’re not covered under Community Health Plans).
- IRS 2024 contribution limits
- Employee only: $4,150
- Family: $8,300
- Money is available as you deposit it
- Balance may be rolled over from year to year and invested
- Special tax rules apply and contributions are prohibited after age 65
- Learn more about Flex Spending & Health Savings Accounts
- Deductibles, co-pays and your share of medical, dental and vision expenses
- Eyeglasses, contact lenses and prescription sunglasses not covered by a plan
- Orthodontia expenses not covered by a dental plan
- Over-the-counter (OTC) medicines (such as allergy and sinus medications, aspirin, ibuprofen, acid controllers, etc.), if they are prescribed by a doctor (requires either an electronic or written prescription). This does not apply to insulin. You can obtain OTC insulin without a doctor’s prescription.
Visit www.irs.gov and search for IRS publication #502. You can also call 800-TAX-FORM (829-3676).
For the Health FSA, you can either file a claim for reimbursement or use a pre-paid FSA debit card. The FSA card can only be used for medical co-pays and deductible, plus eligible expenses for dental and vision. It will be mailed to you after you enroll. You can use it anywhere it is accepted, such as doctors, dentists, pharmacies, hospitals and vision care providers. Be sure to keep itemized receipts and the Explanation of Benefits paid for with this debit card as you may have to provide copies to Navia to validate eligible expenses throughout the year. Downloading the mobile app will give you real-time access to expenses needing verification. To request an additional debit card for yourself or a family member, please contact customer service at (800) 669-3539.
You can use a flexible spending account (FSA) to purchase qualified over-the-counter medications. The CARES Act expanded the list of HSA- and FSA-eligible items to include over-the-counter items like allergy, cough, and pain medication. Please visit www.fsastore.com for a comprehensive list of FSA-eligible products.
To be reimbursed, OTC expenses must include a written or electronic OTC prescription. You must also provide an itemized cash register receipt that includes the merchant name, the name of the OTC medicine or drug, the purchase date, and total amount.
Due to the CARES Act and response to COVID-19, some OTC medications are now available to purchase with your FSA debit card without needing a doctor’s prescription. Simply swipe your card at the counter and all approved items will automatically process. Further questions contact your FSA administrator.
Flexible Spending Account Administration
Visit Navia Benefit Solutions for claims information.
Toll-free phone: (800) 669-3539
Fax: (425) 451-7002
[email protected]
Dependent Care Spending Account
You can pay day care expenses for:
- Children under 13
- Mentally or physically disabled children who cannot support themselves
- A disabled parent or spouse who lives with you and who depends on your support
You can pay for care provided in a licensed day care facility, in a home, or other dependent day care center. To be reimbursed, you must provide the day care provider’s Social Security or tax identification number.
In some cases, the federal childcare tax credit may provide a better tax break than an FSA.
In general, the tax credit is a better option for those earning less than $39,000 a year. Check with your tax advisor to see which one makes sense for you.
For more information about FSAs, visit The Forum.
Submitting FSA claims
Before you get started with your claim submission, you’ll need to have your itemized documentation. It is important to send proper documentation that substantiates the claim. The IRS requires that the documentation shows the:
- Date of service (must fall within the plan year)
- Type of service or item
- Cost or your patient responsibility of the service or item
Itemized bills from providers and Explanation of Benefits (EOB’s) from insurance carriers are perfect forms of documentation. You do not need to show proof of payment unless you are submitting an orthodontia claim. Do not submit copies of cancelled checks, credit or debit card receipts as these forms of documentation do not show the date, type, and cost of the service.
Login to your Benepass account, and look under the “My Tools” tab to access the online claim submission tool!