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Health Care Spending Account Benefits (HCSA)

If you’re an active state employee, you can save money by paying for qualifying health care expenses on a pre-tax basis.

The GIC’s Flexible Spending Accounts (FSAs), administered by ASIFlex, help you save money on out-of-pocket health care costs and/or dependent care expenses. On average, state employees save $300 in federal and state taxes for every $1,000 contributed.

Eligible Expenses

Through the GIC’s Health Care Spending Account (HCSA), active state employees can pay for qualifying out-of-pocket health and dental care expenses on a pre-tax basis. Examples include:

• Physician office visit and prescription drug copayments
• Medical deductibles and coinsurance
• Eyeglasses, prescription sunglasses, and contact lenses
• Orthodontia and dental care
• Hearing aids and durable medical equipment
• Smoking cessation and childbirth classes
• Chiropractor and acupuncture visits

For fiscal year 2019, participants can contribute from $250 to a maximum of $2,650 through payroll deduction on a pre-tax basis. Active state employees who are eligible for GIC benefits are eligible to enroll in the HCSA.

Eligibility and Monthly Fee

If you’re an active state employee who is eligible for GIC health benefits, you’re eligible to enroll in the HCSA. You must also work at least 18.75 hours in a 37.5-hour work week or 20 hours in a 40-hour work week (half-time) to be eligible.

For the 2019 fiscal year, the monthly administrative fee for HCSA only, DCAP only, or HCSA and DCAP combined is $2.50 on a pre-tax basis.

Annual Enrollment: April 4 - May 2, 2018

During the GIC’s spring 2018 Annual Enrollment period, state employees can enroll in FSA benefits for the 12-month fiscal year of July 1, 2018 – June 30, 2019. It is important to consider your election carefully. Because the IRS has a strict “use-it-or-lose it” rule, which means that money left in a pre-tax account plan at the end of a plan year is forfeited.

New state employees and employees who have a qualifying status change during the year may enroll for partial-year benefits. For HCSA, new hire benefits begin at the same time as other GIC benefits.

Participants must re-enroll online each Annual Enrollment period, and give the enrollment confirmation page to their payroll coordinator. New participants, including those enrolling due to a qualifying status change, must complete and return the FSA enrollment and status change forms to their payroll coordinator.


All HCSA participants receive 2 free debit cards to pay for health care expenses out of their HCSA account. You can order additional cards for other covered dependents for $5 per set of 2 cards.

Alternatively, you can also submit claim forms and recipes to ASIFlex as you incur health care expenses, and you’ll receive reimbursement by check or direct deposit, depending on which option you have selected. You can also use ASIFlex’s online tool and mobile app to quickly submit claims.

Each time you use your FSA debit card, you need to ask the provider for an itemized statement that includes:

  • Provider name and address
  • Patient name
  • Date the service/supply was provided (regardless when paid or billed)
  • Description of the service/supply
  • Dollar amount you owe

IRS regulations require you to provide an itemized statement to ASIFlex for FSA expenses upon request. Submit those statements online, via the mobile app, by fax, or mail. As required by the IRS, make sure to keep copies of all HCSA receipts with your tax documents.

Download the wallet card that gives you handy access to the information you’ll need from the provider for substantiation purposes.

Additional Resources

Key FSA Dates

  • 2019 Fiscal Plan Year: July 1, 2018 – June 30, 2019
  • Annual Enrollment: April 4 – May 2, 2018
  • 2½-Month Grace Period: July 1 – September 15, 2019
  • Claim Filing Deadline: October 15, 2019


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