Policy

The University provides access to Flexible Spending Accounts for eligible employees.

Eligibility:

Regular full-time and part-time (50% - 89.9%) faculty, academic staff and University support staff with appointments of nine months or more.

Effective date:

Coverage will be effective the first of the month following the month of enrollment (e.g., enroll in the health care spending account in June, services must occur after July 1 for reimbursement.

Summary of benefits:

Flexible Spending Accounts (FSA) provide tax-free reimbursement to employees for health care and dependent care expenses that are not reimbursed by any other insurance or reimbursement program. IRS regulations require any money not used for eligible expenses in a plan (calendar) year, be forfeited.

Health Care Spending Account (HCSA)

A Health Care Spending Account provides employees the opportunity to pay for medically related expenses, on a pre-tax basis, that are not reimbursed by an insurance plan. The amount you contribute and the amount you are reimbursed from your HCSA are income tax-free. The annual maximum reimbursement for HCSA is $5,000 per eligible employee and $10,000 per household when both the employee and the spouse are MSU employees.

Eligible expenses may include the following examples:

Office and prescription co-pays
Deductibles
Eyeglasses, contact lenses
Orthodontics
Over-the-counter medications

Reimbursements can be made only for services that are incurred during the plan (calendar) year. Services must occur after the first of the month following the month of enrollment (ex. enroll in HCSA in June, services must occur after July 1 for reimbursement). A complete list of HCSA eligible/ineligible expenses is available online or in the FSA brochure.

To determine how much money to set aside from your paycheck for your HCSA, estimate annual medically related expenses and divide this amount by the number of pay periods for the plan (calendar) year. This amount you elect to deposit into your HCSA accumulates tax free in your account.

Each time you incur a qualified health care expense at a health care provider or pharmacy, you may present your DirectCard (to any provider that accepts MasterCard), swipe your DirectCard through the card reader and select credit. The amount of your qualified purchases will be deducted automatically from your HCSA.

To file a claim for reimbursement from your account, complete and submit an HCSA Reimbursement Claim Form along with an insurance explanation of benefits (EOB) or an itemized bill for services not covered by the insurance plan. Mail or fax the request to Weyco, Inc. for reimbursement via check or direct deposit.

Dependent Care Spending Account (DCSA)

A Dependent Care Spending Account provides employees the opportunity to pay for dependent care expenses for a child, disabled spouse or dependent parent, on a pre-tax basis. The amount you contribute and the amount you are reimbursed from your DCSA are income tax-free. You may contribute up to $5,000 per household. If you are married and file a separate income tax return, contributions cannot exceed $2,500 for each of you.

Eligible expenses must be work related and include the following example:

o The cost of care provided in or out of your home for a qualified dependent

According to IRS regulations, the following are examples of expenses that are non-reimbursable:

o Payments made to anyone you claim as a tax dependent

o Payments made to your children under age 19 who provide care to one of your dependents

o Overnight summer camp expenses

o Schooling for children in kindergarten or higher

Reimbursements can be made only for dependent care services that are provided during the plan (calendar) year. A complete list of DCSA eligible/ineligible expenses is available online or in the FSA brochure.

A qualifying dependent is defined as a child under age 13 who is your IRS tax dependent; your spouse who is physically or mentally disabled and unable to care for herself or himself; or your IRS tax dependent, such as an elderly parent or child over the age of 13, who is physically or mentally disabled and unable to care for herself or himself. According to IRS definition, a disabled person is one who is not physically or mentally able to dress, clean, or feed himself or herself or requires constant attention to prevent self-injury.

To file a claim for reimbursement from your account, complete and submit a DCSA Reimbursement Claim Form along with a receipt from your day-care provider. Mail or fax the request to Weyco, Inc. for reimbursement via check or direct deposit.

Please note that if a reimbursement request exceeds the account balance, reimbursement will only be up to the balance available in the account.

Changes in FSA Elections

IRS regulations require any money not used for eligible expenses in a plan (calendar) year, be forfeited. Once you enroll in an FSA, participation must continue unchanged until the end of the plan (calendar) year unless you have a qualifying life event (marriage, divorce, death, birth/adoption or change in employment). An adjustment in your election must be consistent with the change in status, i.e. if your employment status goes down, then your election would too. Any adjustment to your election must occur within 31 days of the occurrence.

Reimbursement

To receive reimbursement from the HCSA or DCSA account, complete the Reimbursement Request Form or contact MSU's FSA Plan Administrator to receive a form.

Attach a receipt from your dependent care provider for DCSA or an EOB from your insurance company (if applicable), or itemized receipt for HCSA and mail or fax to:

WEYCO, INC.
P.O. Box 30132
Lansing, MI 48909
Fax: 517-381-6639
Local: 517-349-7010
Toll-free: 800-748-0003

Checking the status of your account:

You may call Weyco, Inc. toll-free at 800-748-0003 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 MSUnetID and press the Tab key. Enter your password and click Submit. On the eHR Main Menu click the Flexible Spending Account Status Link to view your personal Flexible Spending Account information.

Refer questions to:

MSU Human Resources Benefits (telephone 517-353-4434 or e-mail benefitsinfo@hr.msu.edu)