Save Money on Out-of-Pocket Health Care and/or Dependent Care Costs. Flexible Spending Account Open Enrollment Fall 2014 for 2015 Benefits.
Open enrollment for the GIC’s Flexible Spending Accounts (FSAs) will take place October 14 - December 5, 2014, for 2015 calendar year benefits. By enrolling in these popular benefits, state employees save on average $250 in federal and state taxes for every $1,000 contributed; savings depend on the employee’s family tax bracket. FSA benefits include two options:
Health Care Spending Account (HCSA) Pay on a pre-tax basis for out-of-pocket health care expenses not covered by your health or dental plan. Examples include:
- Physician office visit and prescription drug copays
- Inpatient hospital, outpatient surgery and emergency room copays
- Medical and mental health deductibles and coinsurance
- Eyeglasses, prescription sunglasses, and contact lenses
- Orthodontia and dental care
- Chiropractor and acupuncture visits
Dependent Care Assistance Program (DCAP) Pay on a pre-tax basis for qualified dependent care expenses for children under age 13 and disabled adult dependents. Eligible expenses include day care, after-school programs, and elder day care.
Calendar Year Maximums
HCSA: Due to federal law, the maximum election amount for HCSA is $2,500. The minimum election amount is $500.
DCAP: Elect an annual contribution of up to $5,000 per household for the DCAP program.
Reimbursement of Expenses – Second HCSA Debit Card Free
All HCSA participants receive two free debit card to conveniently pay for health care expenses out of their HCSA account. Additional cards for other covered dependents may be ordered for $5.00 per set of two cards.
For both the HCSA and DCAP accounts, participants can submit a completed claim form with a receipt to the plan administrator. The reimbursement will be deposited to your bank account or will mail you a check, depending on whether or not you enroll in direct deposit.
Be sure to keep copies of all HCSA and DCAP receipts with your tax documents in case of an IRS audit.
Eligibility and Administrative Fee
HCSA: All active state employees who are eligible for GIC health benefits are eligible to enroll in 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.
DCAP: Active state employees, including contractors, who work half-time or more and have employment-related expenses for a dependent under the age of 13 and/or a disabled adult dependent are eligible for DCAP.
Fee: For the 2014 calendar year, the monthly administrative fee for HCSA only, DCAP only, or HCSA/DCAP combined is $3.60 on a pre-tax basis.
Don’t Delay – Enroll No Later Than the Fall Open Enrollment Deadline to Save on Taxes in 2015
Current participants must re-enroll each year; see the forms section for instructions. Enrollment forms for new participants are available through your Payroll Coordinator and on the Forms section of this website. For additional details, contact Benefit Strategies at 1-877-FLEXGIC (1-877-353-9442).
This information provided by the Group Insurance Commission .