Flexible Spending Account Open Enrollment for State Employees

Open Enrollment October 5 – December 4
Higher HCSA Maximum! Lower Fee! New Vendor!

Download the HCSA and DCAP Brochure  

Open enrollment time is here for the GIC’s money-saving Flexible Spending Accounts (FSAs) – the Health Care Spending Account (HCSA) and the Dependent Care Assistance Program (DCAP).  Enroll anytime between Monday, October 5 and Friday, December 4 for calendar year benefits effective January 1, 2010.  Current participants MUST re-enroll to receive benefits in 2010.

Health Care Spending Account (HCSA)

If you are an active state employee eligible for GIC benefits, you are eligible for HCSA, which allows you to pay your out-of-pocket medical expenses on a pre-tax basis:

• Physician office visit and prescription drug co-pays
• Orthodontia and dental expenses not covered by your dental plan
• Eye wear and exams not covered by your vision plan
• Over-the-counter drugs such as pain relievers and eye drops

Dependent Care Assistance Program (DCAP)

All Commonwealth employees who work at least half time are eligible for this program.  Pay for expenses up to $5,000 annually on a pre-tax basis for child care, after school programs, or day camp for your dependent child under age 13, or adult dependent day care expenses.  Separate receipts from your dependent care provider will no longer be necessary.  Instead, as you incur expenses, submit a claim form that includes your dependent care provider’s signature certifying that he/she was paid; the plan administrator will deposit the reimbursement to your bank account or mail you a check. 

Higher HCSA Maximum and Free Debit Card

Elect from a minimum $500 to an increased maximum of $3,000 for the calendar year.  You will automatically receive a FREE debit card to conveniently pay for eligible expenses.  The card works like a credit card – you don’t enter a PIN – just sign the receipt and your transaction will be paid out of your HCSA account.  Remember to save all receipts in case future validation of your claims is requested.  Alternately, you may submit claims with your receipts; the plan administrator will deposit the reimbursement to your bank account if you enroll in direct deposit.

Fee Reduced!

The monthly administrative pre-tax fee for HCSA and/or DCAP will drop to $3.60 effective January 1, 2010, a 4% reduction from the 2009 fee.

New Vendor

The GIC has selected Benefit Strategies as the new vendor for the HCSA and DCAP programs effective November 1, 2009. Benefit Strategies, based in Manchester, New Hampshire, has administered pre-tax programs for 20 years and serves more than 1,100 organizations.

Estimate Your Election Carefully

Be sure to estimate your annual election amount carefully.  IRS rules require that any unused funds in a participant’s account be forfeited.  However, you have a 2 ½ month grace period after the plan year ends (March 15, 2010 for current participants) to incur expenses and submit claims for reimbursement.  Of course, you must have a balance remaining to receive these reimbursements. 

Enrollment and Additional Information

Be sure to enroll no later than Friday, December 4 to save money on your taxes in 2010.  For additional details, contact Benefit Strategies toll-free at 1- 877-FLEXGIC (1-877-353-9442) or the HCSA or DCAP sections of our website.  Current participants view the attached instructions, which will be mailed to your home on how to  re-enroll online.  For new participants, enrollment forms are on the GIC’s website and available from your Payroll Coordinator.