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Administration and Finance

Health Care Spending Account (HCSA)

Through the GIC's Health Care Spending Account (HCSA), administered by Benefit Strategies effective November 1, 2009, active employees can pay for out-of-pocket health care expenses on a pre-tax basis, reducing participants' federal and state income taxes.
  • Examples of eligible expenses can include:
  • Physician office and prescription drug co-payments
  • Medical deductibles and coinsurance
  • Eyeglasses and contact lenses not covered by your health or vision plan
  • Orthodontia and dental benefits not covered by your dental plan
  • Most over-the-counter drugs

Download the HCSA and DCAP brochure Wordfor an overview.  For a comprehensive list of covered expenses, download the HCSA and DCAP list of eligible expenses Word.  For calendar year 2010, you may set aside from $500 to an increased maximum amount of $3,000 annually.

As you incur expenses, submit a claim form and receipt to the administrator; they will deposit the reimbursement to your bank if you have enrolled in direct deposit. Or, use the free debit card to automatically pay for eligible expenses. Receipts to substantiate your claims may be requested by the administrator or the Internal Revenue Service (IRS) so be sure to save them. Failure to substantiate a claim upon request may lead to your card being de-activated.

Eligibility and Monthly Fee

All active state employees who are eligible for health benefits with the GIC are eligible for HCSA. Employees must work at least 18.75 hours in a 37.5-hour work week or 20 hours in a 40-hour work week. For the 2010 calendar year, the monthly administrative fee for HCSA alone, DCAP alone, or HCSA and DCAP combined will be $3.60 on a pre-tax basis.

Enrollment

New Employees
New employees and employees joining from Sheriffs Departments and the Mass Turnpike Authority may enroll for partial year benefits. For HCSA, new hire benefits begin after the same waiting period as other GIC benefits. 

Open Enrollment and Enrollment During The Year
The HCSA and DCAP plan year is January through December. Open enrollment for these programs will take place October 5 - December 4, 2009 for 2010 calendar year benefits. Open enrollment for Sheriffs Departments and the Turnpike Authority will run November 1-November 20, 2009 for benefits effective February 1, 2010.  You must re-enroll each year. Employees that have a “qualified” family status change during the plan year, as outlined on the enrollment and change form, may also enroll.

It is important to estimate your expenses carefully, as the Internal Revenue Service requires that any unused funds in a participant's account at plan year-end be forfeited.

HCSA Questions?

Benefit Strategies 1-877-FLEXGIC (1-877-353-9442); flexgic@benstrat.com

Health Care Spending Account Handbook 2010 Word 

Manage Your Account Online

Learn about and manage your HCSA account online:

  • Account Balances
  • Claims Received
  • Claims Processed
  • Dates when Checks were Paid
  • Download Forms

Questions about managing your account online? Contact Benefit Strategies at 1-877-FLEXGIC (353-9442).

This information provided by the Group Insurance Commission.