Flexible Spending Account (FSA)

What is a Flexible Spending Account (FSA)?
How does a Flexible Spending Account (FSA) work?

Who is eligible to participate in a Flexible Spending Account (FSA)?

What expenses qualify (don't qualify) for reimbursement?

Do I have to participate in both accounts, or can I participate in just one?

Will a FSA work for me?

How do I enroll in a FSA?

How do I check the status of my Flexible Spending Account?

Why do amounts that are unused in my account at year-end have to be forfeited?

Will participation in a FSA affect my other benefits?

Where do I get claim forms?

Where can I get more information?

Can I change the amount of money I put into my Flexible Spending Accounts?

Who is Meritain Health?

What happens to unused monies in my account if I retire or terminate?

What happens if I take an unpaid leave of absence?
If my spouse, who doesn't work at MSU, loses his\her job, is that considered a life event?

Do I have to re-enroll during every open enrollment period?

How do I receive reimbursement?

How often does MSU's FSA Plan Administrator process reimbursements?

Why do I need to contact a tax advisor?

How frequently will I receive account statements?

My spouse and I both are employed by MSU, can we have separate FSAs?
Will the merger between Weyco and Meritain affect the services Weyco will provide to MSU participants? 


Dependent Care Spending Account (DCSA)

How does the DCSA compare with the Federal Child and Dependent Care Income Tax Credit?

How much can I contribute to my DCSA?

How much can I be reimbursed for DCSA?
Can I change the amount of money I put in my Dependent Care Spending Account if my dependent care provider changes his/her fees?


Health Care Spending Account (HCSA)

How much can I contribute to my HCSA?
How can I sign up for the HCSA Debit Card?
Can I use the HCSA Debit Card to pay for over-the-counter (OTC)  medications?
Can I use the HCSA Debit Card to pay for dental or vision services?
If I use the HCSA Debit Card do I need to save my itemized receipts?
If my prescription is written for 20 tablets but Caremark will only pay for 12 tablets for a 3-month period, can I use the HCSA Debit Card to pay for all 20 tablets?

Will my employer have access to specific information pertaining to my health care reimbursements?
Can I be reimbursed for mileage through the Health Care Spending Account?
Can I include orthodontia services even though the date of service is prior to the start of my HCSA?
What does the new FSA extension mean?
What if I don't use all of my money from the previous plan year by March 15?
Do I still have a runout period in order to submit my claims?
If I incur an expense in the new plan year and I have a balance in the old plan year, which plan year will the expense be applied towards?
Can I use my debit card for expenses that need to be applied toward my previous plan year?
Should I throw away my current debit card?  Will I receive a new debit card for next year?

Flexible Spending Account (FSA)

What is a Flexible Spending Account (FSA)?

A flexible spending account allows you to reimburse yourself for eligible Health Care and Dependent Care expenses - tax free! By participating in these accounts, you do not pay federal, state, city, and Social Security taxes on the money you contribute. Participation is voluntary and employees must sign up during open enrollment

 

You determine the amount you want to contribute for the plan year (January 1 - December 31). This amount is divided over each pay period and is deducted from your paycheck before taxes are calculated. When you incur an expense, use your HCSA Debit Card or submit a request for reimbursement form and a receipt of services to MSU's FSA Plan Administrator. Only Health Care Spending Account enrollees have the option of using the HCSA Debit Card reimbursement system.  Reimbursement checks, or direct deposit (if you choose that option) are processed within three business days after MSU's FSA Plan Administrator receives your approved claim form. Remember to carefully choose the amount you want to have deducted from your paycheck. Due to IRS regulations, money left in your account at the end of the plan year (December 31) is forfeited.


Who is eligible to participate in a Flexible Spending Account (FSA)?

The Flexible Spending Accounts (Dependent Care Spending Account and Health Care Spending Account) are provided as options for all eligible full-time (90%-100%) and part-time (50%-89.9%) executive management, faculty, academic and support staff. Employees have 60 days from the day of initial appointment/hiring or eligibility to sign-up for Flexible Spending Accounts (FSA). Employees that do not enroll by the enrollment deadline will not be eligible for the tax savings opportunities until the next FSA open enrollment unless they have a qualifying life event.

The program is effective the first day of the month following enrollment or changes. For example, an employee is hired 7/15 and enrolls in the Dependent Care Spending Account the same day. The program goes into effect 8/1. Only eligible expenses occurring 8/1 or after may be submitted for reimbursement.

Eligible and Ineligible Expense List

These two accounts are separate plans with unique eligibility requirements. The HCSA and DCSA plans are available to all benefit eligible employees. If eligible, you may choose to enroll in either plan or just one.

To help you decide if a FSA will work for you complete the following worksheets:

Dependent Care Spending Account Worksheet

Health Care Spending Account Worksheet

Participation in a FSA is completely voluntary. Annual open enrollment occurs in the fall. When enrolling, you must state the amount of money you wish to have subtracted from your gross pay for the plan (calendar) year. The amount you choose will be divided equally by the number of times you are paid during the plan (calendar) year. This amount will be reduced from your pay and deposited into your FSA each pay period.

Once you have determined your election needs, you may enroll by accessing the Web-based online enrollment feature at www.hr.msu.edu then select the eHR Services login link. Enter your MSU NetID and password. Click Submit. Click the Benefits Enrollment/Changes link.  For enrollment assistance you may contact MSU Human Resources Benefits at 517-353-4434 or toll-free at 800-353-4434. Employees that do not enroll by the enrollment deadline will not be eligible for the tax savings opportunities until the next calendar year unless they have a qualifying life event. You may begin, stop or change the amount of your spending account contribution if you have a qualifying life change event such as:

• Marriage or divorce
• Birth, adoption or legal guardianship of your child
• Death of a spouse or a dependent
• Change in your employment status
• Unpaid leave of absence

You may call MSU's FSA Plan Administrator or you may view your FSA via the Web at www.hr.msu.edu. Click the eHR Services Login link to open the eHR Services Login page. Enter your MSU NetID and password. Click Submit. Upon clicking Submit the eHR Main Menu is displayed. Click the Flexible Spending Accounts Status link to view your personal Flexible Spending Account information.

The Internal Revenue Service (IRS) requires that these unused dollars be forfeited as a condition of offering spending accounts. Since the money is tax-free, the IRS views your election commitment as just that...a commitment to fully fund your account for your entire plan (calendar) year election. This is true whether or not you actually use the money. Keep in mind that it is not MSU’s or the IRS’s intention or wish that you forfeit money. We want all employees to fully take advantage of this valuable benefit and to use all the money that’s deposited to your account(s). So plan conservatively.

Participation in a FSA program may affect your future Social Security benefits because contributions to a FSA reduce your taxable income, which reduces your Social Security taxes. If your taxable income is below the maximum wage taxed by Social Security, you could reduce your future Social Security benefits. For most people this reduction would be minimal – only a few dollars per month. If you invest your tax savings as a result of the FSA, it is projected that your tax savings could make up for any reductions in Social Security benefits.

Claim forms are available through the MSU Human Resources Web site at www.hr.msu.edu/HRsite/Benefits/FacStaff/FSA/.

Please direct questions about your MSU Flexible Spending Account to:

Meritain Health
P.O. Box 30111
Lansing, MI 48909
Fax: 517-381-6600
Local: 517-349-7010
Toll-free: 800-748-0003

Once you enroll in a FSA, your participation must continue unchanged until the end of the plan (calendar) year unless you have a qualifying life event. Qualifying life events include marriage, divorce, death, birth/adoption, or a change in employment. However, the adjustment in your election must be consistent with the change in status, e.g., if your employment status is reduced then so would the amount of money you put into your account. If you have a qualifying life event during the plan (calendar) year, you may make changes to this benefit at www.hr.msu.edu within 31 days of the occurrence through the eHR Services login link. Any changes to the FSA become effective the first day of the month following the change(s). Should you have questions on your status change, you may contact MSU's FSA Plan Administrator or MSU Human Resources Benefits at 517-353-4434 (toll-free 800-353-4434).

Meritain Health is located in Okemos and is a nationally respected benefits management company with experience administering Flexible Spending Accounts for large employers, including other universities.  Weyco will be processing all claims, answering your questions, and helping you in any way they can. They can be reached by calling locally 517-349-7010 or toll-free 800-748-0003.  Fax (517-381-6600) or mail all inquiries and claims to P.O. Box 30111, Lansing, MI 48909.

The IRS requires that any unused monies left in your account must be forfeited...so plan conservatively. Certainly, if you plan on leaving MSU for any reason, you may wish to reconsider your choice to participate. If, however, you choose to participate and leave prior to year-end, then you can continue to have access to your account deposits, by continuing to submit claims incurred (with a date of service) prior to your employment termination date. You have until the end of the plan year to do so. Additionally, if you participate in the Health Care Spending Account, you may be eligible to continue your participation under COBRA. COBRA allows you to continue to make after-tax contributions to your account, and also to submit reimbursement requests for claims incurred after your employment has ended (during your COBRA period of coverage).

What happens if I take an unpaid leave of absence?

Keep in mind that an unpaid leave of absence is considered by the IRS and MSU as a family or employment change in status. Contributions will cease at the onset of your leave. Events such as a leave of absence may allow you to change your elections in a manner consistent with the reason for the leave upon your return.

Upon return from leave or layoff, you will automatically be re-enrolled into your HCSA if you return within the same calendar year. The remainder of your election will be divided equally over the remaining calendar year pay periods.  As a result of the re-enrollment you may submit eligible claims that you incurred during your absence. 

Re-enrollment is not automatic in the following situation:  if your return from an unpaid leave of absence occurs after 12/31 you are required to re-enroll in the HCSA program within 31 days of your return.  Your Flexible Spending Account will become effective the first day of the month following your re-enrollment.

If my spouse, who doesn't work at MSU, loses his\her job, is that considered a life event?

The IRS requires that employees make new elections for each and every plan year. It is important to review your expenses each year to make sure that your election is appropriate, based on the actual expenses you expect to have. Please contact MSU Human Resources Benefits at 517-353-4434 or toll-free 800-353-4434 or MSU's FSA Plan Administrator.

How do I receive reimbursement?

To receive reimbursement from your account, review the Reimbursement Request Instructions.  You have until March 31 to submit reimbursement requests for the previous year’s expenses.

Weyco, Inc. will process your reimbursements daily. Reimbursements will be processed within three (3) business days and the check will be sent on the fourth (4th) business day.

The benefit derived from participation in the Health Care or Dependent Care Spending Accounts is tax savings. With regard to your taxes, they are your responsibility, and involve much more than simply multiplying a tax rate times your wages. MSU Human Resources Benefits and MSU's FSA Plan Administrator are not staffed to properly handle personal tax questions. In order to maximize your tax savings from these accounts, and to ensure that they fit with your personal income tax situation, you are encouraged to consult with your tax advisor if you have specific questions or concerns prior to enrollment.

In addition to your reimbursement check stubs from MSU's FSA Plan Administrator, which reflect all account activity and balances, you will receive quarterly statements during the course of the plan year.  You may call MSU's FSA Plan Administrator at any time for an up-to-the minute account activity summary via Interactive Voice Response (IVR) System or via the Web.

Yes. The maximum household benefit for HCSA is $10,000 or $5,000 each. The maximum benefit for DCSA is $5,000 or $2,500 each. You are encouraged to speak to a tax advisor to determine the best situation for you prior to enrolling in the program.

Will the merger between Weyco and Meritain affect the services that Weyco will provide to MSU particpants?

At this time, there will be no change in the way Weyco does business as the MSU Flexible Spending Accounts Administrator.

Dependent Care Spending Account (DCSA)

If you are currently incurring dependent care expenses, you are probably paying for these expenses in after-tax dollars and taking the Federal Child and Dependent Care Income Tax Credit when you file your income taxes. The IRS limits the federal income tax credit to eligible expenses of $3,000 for one dependent and $6,000 for two dependents or more. The DCSA limit is $5,000 regardless of the number of dependents; however you can claim the remaining $1,000 toward the Federal and Dependent Care Income Tax Credit.

Whether you use the federal income tax credit or the Dependent Care Spending Account, you must complete and submit IRS Form 2441 with your annual income tax return. This form provides the IRS with information on your dependent care provider and your dependent care expenses for the tax year.

You may contribute up to $5,000 for the full plan (calendar) year. If you are married and your spouse’s employer also offers a Dependent Care Spending Account or both you and your spouse work at MSU, your combined total annual contribution cannot exceed $5,000. If you are married and you file a separate income tax return, contributions cannot exceed $2,500 for each of you, with a $5,000 total maximum. Utilize the DCSA Worksheet to assist with the planning of your DCSA contribution. A listing of the monthly and bi-weekly pay dates can be found at http://www.ctlr.msu.edu/COPayroll. You will need to plan carefully, as the IRS requires any unused money left in your account at the end of the plan year to be forfeited.

The total amount of expenses you submit for reimbursement in a plan (calendar) year must not exceed the lesser of your earned income, your spouse’s earned income if you are married, or $5,000. For example, if your working spouse earns $4,000 a year, the maximum amount you can be reimbursed is $4,000. If your working spouse earns $20,000, the maximum amount you can be reimbursed is $5,000.

According to IRS regulations, a spouse who is disabled or a full-time student is determined to have an income of $250 per month if you have one dependent (total annual income of $3,000), or $500 per month if you have two dependents or more (total annual income of $6.000). If your spouse is a full-time student and you have one dependent, your maximum reimbursable amount is $3,000; if you have two dependents or more your maximum reimbursable amount is $5,000 plus you can claim the remaining $1,000 toward the Federal and Dependent Care Income Tax Credit.

Please note: If you use the Dependent Care Spending Account, you cannot use the federal income tax credit for the same expenses.

Can I change the amount of money I put in my Dependent Care Spending Account if my dependent care provider changes his/her fees?

Yes, this change qualifies as a life event.  Simply complete the Offline EnrollmentChange Form and submit to MSU Human Resources Benefits. 

Health Care Spending Account (HCSA)

Eligible employees may contribute up to $5,000 per year.  This is per-eligible individual maximum.  If both you and your spouse are employed by MSU and each of you would like to have your own separate HCSA, then the maximum household contribution for both Health Care Spending Accounts would be $10,000.  This maximum amount became effective Jan. 1, 2005. 

Before the plan (calendar) year begins you will need to determine your annual election. After you determine your estimated annual expenses and arrive at an HCSA contribution dollar amount, divide this amount by the number of pay periods for the (calendar) year. This amount will be deducted in even amounts from each of your paychecks, and contributed to your Health Care Spending Account. Utilize the HCSA Worksheet to help calculate your estimated expenses. A listing of the monthly and bi-weekly pay dates can be found on the Web at http://www.ctlr.msu.edu/COPayroll. You will need to plan carefully as the IRS requires that any unused money left in your account at the end of the plan year be forfeited.


How can I sign up for the HCSA Debit Card?

Once you sign up online for the health care spending account, MSU's FSA Plan Administrator will automatically mail you one (1) card.  You may contact MSU's FSA Plan Administrator by email flexonline@weyco.com, fax 517-381-6600 or phone locally 517-349-7010 or 800-748-0003 to receive additional HCSA Debit Cards without cost.


Can I use the HCSA Debit Card to pay for over-the-counter (OTC) medications?

Yes, you must submit an HCSA Debit Card Substantiation form along with an itemized receipt to MSU's FSA Plan Administrator.  Should your receipt not be itemized, you will need to submit your receipt with the OTC item circled, sign the receipt and provide a copy of the OTC's box with the price tag to MSU's FSA Plan Administrator.


Can I use the HCSA Debit Card to pay for dental or vision services?

Yes, the money will be deducted from your account.  However, you still need to submit an HCSA Debit Card Substantiation form and an itemized receipt to substantiate the claim.  You may choose to wait to pay dental claims after you have received your EOB (Explanation of Benefits) to ensure claims are paid correctly.


If I use the HCSA Debit Card do I need to save my itemized receipts?

Yes, since HCSAs are IRS-regulated benefits, save all receipts. MSU's FSA Plan Administrator may contact you to submit a receipt to verify an expense. To meet IRS requirements, if such receipts aren't sent to MSU's FSA Plan Administrator in the time frame indicated in their correspondence, your HCSA Debit Card may be suspended until the issue is resolved.  You will need to submit an HCSA Debit Card Substantiation form and an itemized receipt to substantiate the claim.


If my prescription is written for 20 tablets but Caremark will only pay for 12 tablets for a 3-month period, can I use the HCSA Debit Card to pay for all 20 tablets?

You can use the HCSA Debit Card to pay the co-pay for the 12 tablets allowed by Caremark.  You would need to pay out-of-pocket for the remaining 8 tablets and submit the receipt and a reimbursement request form to MSU's FSA Plan Administrator for reimbursement.

Yes. Your Explanation of Benefits (EOB) statement will satisfy proof of your claim. Remember that an EOB is any statement received by you, which identifies benefits paid and not paid under the terms of the insurance plan. It is the unpaid benefits that may be eligible for reimbursement from the HCSA.

No. Proper documentation must accompany a claim for reimbursement and must reflect your obligation to pay the expense; however, a paid receipt is not necessarily required. Eligibility for reimbursement is based on the date of service, not the date of payment.

MSU's FSA Plan Administrator does not necessarily require an EOB statement, although attaching an EOB to your claim certainly minimizes any potential questions and delays in processing your claim. However, if you do not have an EOB statement, you must submit an itemized receipt for services, which reflects the type of service, your responsibility for the portion of costs not covered by insurance, and the date of service.

If a person qualifies as your dependent for federal tax purposes, they qualify as a dependent under the HCSA. This definition may be different from that provided under MSU’s other group benefit plans. Special rules for dependent status apply to the DCSA. These requirements are specified by the IRS.

Expenses must be incurred by qualified dependents as specified by the IRS regulations. As a result, expenses incurred by a MSU recognized same-sex domestic partner would not qualify for reimbursement.

No. Insurance premiums are an ineligible expense. However, health and dental premiums paid through your MSU paycheck are automatically processed on a pre-tax basis. The Eligible and Ineligible Expense List is available for your use.

In order to ensure your confidentiality, your employer will not have access to your specific health related expenses.