Benefit from an FSA Increase Your Spending Power How an FSA Works - PowerPoint PPT Presentation

Benefit from an FSA Increase Your Spending Power

How an FSA Works You project your qualified expenses during the plan year You agree to have that amount taken from your paycheck in equal installments on a pre-tax basis during the plan year You use the funds to reimburse qualified expenses There are two types of FSA Accounts: Health FSA & Dependent Care FSA

Benefits of a Health FSA You increase your spending power by receiving a portion of your income pre-tax (no federal income or payroll taxes or state income taxes) You can also easily budget for higher cost health care expenses You can spend your entire election at any point during the plan year (You may even negotiate a prompt-pay discount with your provider!) It’s like an interest-free loan • You can reimburse all qualified family members’ qualified expenses, even if they’re not covered on your medical plan You draw funds directly from your Health FSA via the debit card we send you

Important Information The election amount you select cannot change unless you experience a qualifying life event Per IRS regulations, you forfeit any remaining balances at the end of the plan year Use our online tools to make a careful election • You have additional time at the end of the plan year to spend your balance • You may be required to provide follow-up documentation for certain purchases when you use your debit card You generally don’t have to provide any follow up documentation when you use your card for plan copays, recurring expenses, and qualified OTC equipment and supplies

Whose Expenses Are Qualified? Yours, whether or not you’re enrolled in a GIC medical plan Your legally married spouse’s, whether or not your spouse is enrolled in your medical plan Your tax dependents’ and your children’s (to age 26), whether or not they’re enrolled in your medical plan Note: Your domestic partner’s or ex-spouse’s expenses are not qualified for reimbursement per federal regulations

Substantiation W H A T I S I T ? W H E N D O W E N E E D I T ? The IRS requires that we verify all card Only send information in if we request it. transactions are for eligible expenses We have many auto-substantiation processes that Sometimes, the details that are provided to us for we use to prevent our need for a request. Debit Card transactions is not enough, so we will request you send substantiation for us to approve the expense.

Health FSA Qualified Expenses Medical Plan Dentistry Vision Over-the-Counter Cost Sharing Fillings Prescription glasses Equipment and supplies Office Copays (bandages, splints, Root canals Prescription sunglasses Hospital Copays crutches, etc.) Implants Contact lenses and Prescription Copays Over-the-counter drugs solution and medicine when you Crowns Deductibles have a prescription. Vision-correction Orthodontia surgery See our Eligible Expense handout for more examples of Qualified Expenses

Forms of Substantiation A C C E P T A B L E U N A C C E P T A B L E Cancelled checks • A detailed receipt that shows all of these: Credit card receipts or statements • Date the expense was incurred • A “balance forward” statement • Name of provider of expense • Description of expense • Amount of the expense • It’s easy to submit substantiation for a claim right through our Mobile App, Online Portal, Fax, Mail, or Secure Email!

Mobile Account Access The Benefit Strategies mobile application is available on iOS & Android Use the app to view your balance and important filing dates File claims! Use your devices camera to take a picture of your receipt and upload it through your phone! View Benefit Strategies contact information and resources 9

Benefits of a Dependent Care FSA Funds in a Dependent Care FSA may be used towards expenses for the care of your child(ren) while you (and your spouse if married) are at work or attending school full time. You can pay your child care related expenses with pre-tax dollars Eligible Dependents are children up to age 13 or tax dependents of any age who are mentally or physically incapable of self-care reside with you.

Dependent Care FSA Eligible Settings Day Care Centers Baby Sitters Before & After Vacation Day-Camps (In & out of your home) School Programs Note: Kindergarten and overnight camp expenses are not eligible

Important Information Unlike a Health FSA , you can’t access any more than you’ve had withheld from your paycheck at any point in the year The election amount you select cannot change unless you experience a qualifying life event You forfeit any remaining balances at the end of the plan year You can pay your provider with a debit card tied to your account

Next Steps on Either Account Use our calculator to estimate the qualified expenses that you’ll incur from July 1 st , 2019 and June 30 th , 2020 Please visit: benstrat.com/group-insurance-commission-fsa Follow the instructions to enroll in your FSA After July 1, log onto your account at benstrat.com Sign up online for communication preferences (e-mails, texts, notification of transactions, etc.)

Customer Relations Mon → Thurs: 8:00am – 6:00pm ET Have Questions? Friday: 8:00am – 5:00pm ET We’ve got you covered. Live Chat: benstrat.com Text-To- Chat: 877-353-9442 Toll- Free: 877-353-9442 Language translation service available (Automated system available at all times) Email: commonwealth @benstrat.com