WHAT’S A FLEXIBLE SPENDING ACCOUNT

An FSA is a Flexible Spending account that allows you to set aside money on a pre-tax basis to pay for eligible healthcare and/or dependent care expenses. The amount that you choose to contribute is taken out of your paycheck in equal amounts each pay period, making it easy to save for out-of-pocket expenses.

*FSA contribution limits for 2022 have not been updated.  We will notify employees as soon as this information is available.

 
Medical FSA
Dependent Care FSA
Limited FSA
Maximum Contribution$2,850$5,000*$2,850
Qualified ExpensesQualified Medical, Dental and VisionChildcare (up to age 13) or Care for an Adult with DisabilityQualified Dental and Vision
Use it or Lose itYesYesYes
Medical Plan Pairingany plan or no plan, as long as you do not have a Health Savings Accountany medical plan or no medical planonly with a High Deductible plan and if you have a Health Savings Account

IMPORTANT: Careful planning of your expenses is recommended because the IRS imposes a “use it or lose it” rule. The final deadline for filing claims is 90 days after year-end (March 31st). During this period, a participant may continue to incur and submit requests for reimbursements to be distributed from any balance remaining from the previous plan year. Changes to your contribution elections are not permitted unless you have a qualified life status change. FSA dollars may be spent on the www.FSAstore.com at any time.  All items on the FSA Store are FSA eligible and provide fast and easy home delivery on non-prescription healthcare related items.

ADVANTAGES

The main benefit of an FSA is that the money you contribute is deducted from your pay on a pretax basis. Therefore, your taxable income is less. So, when you use your FSA funds, it’s like you’re saving about 30 cents on every dollar you spend.

FLEX DEBIT CARD

The Discovery Benefits debit card provides you instant access to FSA funds. The card virtually eliminates all use of request for reimbursement forms for medical expenses. It looks and works like a typical debit card. You can request one additional card for your dependent.

FREQUENTLY ASKED QUESTIONS

What is the benefit of enrolling in a FSA?

The main benefit of an FSA is that the money you contribute is deducted from your pay on a pretax basis. Therefore, your taxable income is less. So, when you use your FSA funds, it’s like you’re saving about 30 cents on every dollar you spend.

How does an FSA work?

It’s quite simple really. You contribute, spend and save.

    1. Contribute – Estimate the amount you expect to spend during the plan year on eligible out-of-pocket expenses. Out-of-pocket expenses are those not covered by insurance or any other plan. Select the FSA (health care, dependent care, and/or Limited Purpose) that’s right for you and choose how much you want to contribute. Your employer will deduct that amount from your paycheck in equal amounts each pay period. These deductions are pretax. Each FSA has its own contribution limit, which is set by the Internal Revenue Service (IRS). Below are the current limits.
      • Health Care FSA contribution limit – $2,750
      • Limited Purpose FSA contribution limit – $2,750
      • Dependent Care FSA contribution limit -$5,000
    2. Spend – Once funds are in your FSA, your account debit card, to pay for your eligible expenses.
    3. Save – Your FSA contributions are tax-free. So when you use your FSA funds on eligible expenses, you end up saving about 30 cents on every dollar you spend.

How do I use the money in my FSA?

Once funds are in your FSA, you can use your Discovery Benefits debit card to pay for your eligible expenses. Or you can simply pay with cash, check or credit card, and then submit a claim to pay yourself back. 

What does the term “incurred” mean?

The IRS considers an expense to be “incurred” at the time you receive the care, service or supply. It’s not when you’re billed or pay for the expense.

Example:

You enrolled in a health care and dependent care FSA that’s effective January 1 through December 31 of this year. Eligible expenses that you incur during this period can be reimbursed.

  • You received health care services in December of last year. You paid for those services in February of this year. This expense can’t be reimbursed because you incurred the expense before the start of the FSA plan year.
  • You had dental work done in January of this year. You prepaid for the work last December. Though you paid for the work last year, you receive the dental treatment this year. This means the expense can be reimbursed from your FSA.
  • You paid for summer day camp in March. Camp begins July 15 and ends July 22. The expense is considered “incurred” on July 22. This means you can be reimbursed from your dependent care FSA for the cost of camp after July 22.

How do I file an FSA claim?

After you incur an eligible expense, you can:

  • Submit a claim online. You can upload or fax your documentation to us.
  • Submit a claim through Discoverybenefits.com or on the Discovery Benefits app. You can download it for free from your mobile app store. You’ll use the same username and password that you use for this website.

What do I need to send with my FSA claim?

It depends on your expense type.

  • If your expense went through your medical or dental plan, you’ll need to send an Explanation of Benefits (EOB) from your plan. This is the best form of documentation.
  • If your expense didn’t go through your medical or dental plan, you can send an itemized receipt or statement for the expense. It must show:
    • Date of purchase or service
    • Amount you were required to pay
    • Description of the item or service
    • Name of the merchant or provider
    • If the claim is for an OTC drug or medicine, you must also include a written prescription form your doctor
  • For prescriptions, send your detailed receipt that includes the pharmacy name, patient name, prescription name, date the prescription was filled, and amount you paid.
  • For dependent care expenses, the dependent care provider must sign the claim form or provide an itemized receipt. It must include the date(s) of service.

When does my FSA expire?

The IRS allows employers to give FSA owners until March 15 of the following year to make eligible medical expenditures and pay for them with account money.

Contact Information


FSA

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