Save money on out-of-pocket Health Care and/or Dependent Care Costs.  Flexible Spending Account open enrollment Fall 2013.

Open enrollment for the GIC’s Flexible Spending Accounts (FSAs) takes place in the fall, for calendar year 2014 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, administered by Benefit Strategies, include two options:

2013 Open Enrollment Flexible Spending Account Brochure pdf format of 2013 Open Enrollment Flexible Spending Account Brochure file size 3MB

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
  • Calendar year medical and mental health deductibles
  • 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 - Election Amount Changes for HCSA

HCSA:  Due to federal law, the maximum election amount for HCSA for calendar year 2013 will change to $2,500.  The minimum election amount remains unchanged at $500.

DCAP: Elect an annual contribution of up to $5,000 per household for the DCAP program; this amount is unchanged from 2012.

Reimbursement of Expenses – Second HCSA Debit Card Now Free

All HCSA participants receive a free debit card to conveniently pay for health care expenses out of their HCSA account.  Participants will now receive a second debit card free for an eligible family member.  Additional cards for other covered dependents may be ordered for $5.00 per set of two.

For both the HCSA and DCAP accounts, participants can submit a completed claim form with a receipt to Benefit Strategies.  Benefit Strategies will deposit the reimbursement 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 Unchanged:  For the 2013 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 end of Open Enrollment to Save on Taxes in 2014

Current participants must re-enroll each year; you will receive instructions on how to re-enroll online.  Enrollment forms for new participants are available through your Payroll Coordinator and on the Forms section of the GIC’s website.  For additional details, contact Benefit Strategies at 1-877-FLEXGIC (1-877-353-9442).

This information provided by the Group Insurance Commission.