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Health Flexible Spending Accounts FAQs

The maximum benefit for Health FSA is $2,650 per eligible employee. Before the plan (calendar) year begins you will need to determine your annual election. Utilize the  Health FSA Worksheet  to help calculate your estimated expenses. A listing of the monthly and bi-weekly pay dates can be found on the Web at . 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.

Once you sign up online for the Health FSA, MSU's FSA Plan Administrator will automatically mail you a card.

Yes, provided you have received a prescription from your doctor and submitted it to the pharmacist. You must submit an Health FSA Debit Card Substantiation form along with an itemized receipt to MSU's FSA Plan Administrator.

Yes. However, you still need to submit an Health FSA 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.

Yes, since Health FSAs 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 Health FSA Debit Card may be suspended until the issue is resolved. You will need to submit an Health FSA Debit Card Substantiation form and an itemized receipt to substantiate the claim.
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 Health FSA.
Acceptable supporting documentation contains five pieces of information: 1) Date of Service; 2) Description of Service (such as co-pay); 3) Patient Name; 4) Provider's Name; 5) Amount of Transaction. An EOB from your insurance carrier contains all five pieces of information and would be available to you from your insurance carrier if you used insurance for your card transaction.
 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 Health FSA. This definition may be different from that provided under MSU's other group benefit plans. Special rules for dependent status apply to the Dependent Care FSA. These requirements are specified by the IRS. Please review the IRS requirements on eligibility on their website at:
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. Please review the IRS eligible expense list which can be found on their website at:
 In order to ensure your confidentiality, your employer will not have access to your specific health related expenses.
 You can include in medical expenses, amounts paid for transportation primarily for, and essential to, medical care. Please review the IRS eligible expense list which can be found on their website at: .
Yes, when you use your debit card, the card will use remaining funds from the previous year until the funds are exhausted or until the grace period ends on March 15 of the current year. Then it will use your current plan year funds.
Do not throw away your debit card. You will not receive a new debit card every year.