Health Care Spending Account (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 Health Care Spending Account (HCSA) is for out-of pocket health care expenses not covered by insurance. It helps active state employees like you pay for out-of-pocket health and dental care expenses on a pre-tax basis. By enrolling in the HCSA, you will have some of your paycheck deducted to contribute to your HCSA account.

With HCSA, you can pay for expenses and then submit a claim form (with a receipt) to receive a reimbursement by check or direct deposit, depending on which option you choose.

Eligible expenses

Some eligible HCSA expenses are:

  • 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
  • Classes on quitting smoking
  • Childbirth classes
  • Chiropractic and acupuncture visits

For a more comprehensive list of covered expenses, check the full list of HCSA eligible expenses. To estimate your HCSA expenditures, you can use the HCSA worksheet. 

Eligibility & 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 2018 fiscal year, the monthly administrative fee for HCSA alone, DCAP alone, or HCSA and DCAP combined, is $2.50 on a pre-tax basis.

Open enrollment

Open enrollment for Flexible Spending Account benefits will take place April 4 - May 2, 2018 for fiscal year benefits effective July 1, 2018. For the fiscal year, you can contribute $250 to $2,600 through payroll deduction on a pre-tax basis.

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.

If you are already an enrolled participant who wants to re-enroll, you must re-enroll each open enrollment period online.

Reimbursement

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

2.5 month grace period

The IRS has a strict “use-it-or-lose-it” rule because of the tax benefits of FSAs. That means if you have any money left in a pre-tax account at your plan’s year end, that money is gone. However, you still have a 2½ month grace period to use your benefits. For the 2018 fiscal year, you have until September 15, 2018 to incur claims and until October 15, 2018 to submit claims for reimbursement.

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