The Internal Revenue Service recently announced a new option for employers that would allow employees enrolled in Health Care Spending Accounts to carry over up to $500 of unused Health Care Spending Accounts into the following calendar year. Alternately, employers can continue to allow a 2 ½ month grace period in which to spend up to any amount remaining into the following calendar year. After analyzing the data, it was determined that more employees benefit under the current option and the Commission unanimously voted on Friday, November 15, to continue to offer the 2 ½ month grace period. This means that 2013 Health Care Spending Account participants have until March 15, 2014, to incur claims for 2013 benefits, and have until April 15, 2014, to submit claims to be paid from their 2013 balance, if applicable.
The GIC is going out to bid in 2014 for the Flexible Spending Account vendor effective January 1, 2015, and will evaluate the two options again as part of the procurement.
This information provided by the Group Insurance Commission.