Health Care Spending Account

N/A for municipal enrollees Health Care Spending Account (HCSA)

Through the GIC's Health Care Spending Account (HCSA), administered by SHPS, 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

For a comprehensive list of covered expenses, download the HCSA and DCAP list of eligible expenses

For calendar year 2008, you may set aside from $500 up to a maximum amount of $2,500 annually.

All HCSA participants will automatically receive a FREE SHPS Spending Account Card to conveniently pay for eligible expenses. Or, alternately, as you incur expenses, submit a claim form and receipt to the administrator; they will deposit the reimbursement to your bank.

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. The monthly administrative fee for HCSA alone, DCAP alone, or HCSA and DCAP combined is $3.75 on a pre-tax basis.

Enrollment

New Employees
New employees 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 in fall 2008 for 2009 calendar year benefits. 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.