Flexible Spending Accounts
lexible Spending Accounts (FSA’s) allow you to use pretax money to pay for necessary health care and dependent care expenses, thus allowing you to save taxes. By participating in the FSA, you lower your taxable income and then can be reimbursed for qualified expenses with tax free money. Important: All pretax funds that are not used for eligible expenses incurred during the plan year will be forfeited. This is mandated under the IRS “use it or lose it” rule. To avoid forfeiture, you should plan carefully. Elections cannot be changed during the plan year unless you experience a qualifying event.
Medical Flexible Spending Accounts
Medical FSAs can be utilized for your own, your spouse and your dependents’ non-reimbursed expenses including medical, dental, vision, copays and prescription drugs. Visitwww.discoverybenefits.com to get a complete list of qualified expenses. You may elect to contribute up to $2,500 per year. The minimum annual election is $100. Employees electing the HD/HSA plan cannot enroll in the Medical FSA.
Benefits Debit Card (Medical FSA Only)
The benefits debit card is free and can be used to pay your medical expenses.
Now you can shop for prescriptions, vision, dental, copays, deductible, etc. instead of spending cash, writing checks or using other credits cards, with virtually no need to submit receipts.
The debit card may only be used in conjunction with your Medical FSA and not your Dependent Care FSA. You do not need to elect to receive the benefits debit card, you will automatically receive one if you elect a medical flexible spending account. It is your option to use it. Employees with an existing card will have their balance updated.
If you choose not to use the card, you may complete and submit a reimbursement request form with the receipt/statement attached and a check will be sent in two business days; or the amount can be direct deposited at no expense to you, in two business days.
Some expenses you incur during the year may not be eligible for reimbursement under current IRS regulations. For a complete list of ineligible expenses, see IRS Publication 502 “Medical and Dental Expenses,” visit the IRS website: www.irs.gov. If Discovery Benefits needs to review a receipt to determine if the expense was eligible, they will send you a receipt reminder. If you don’t respond, Discovery Benefits will deactivate the debit card after 72 days. To avoid the need for review of receipts, use your card at participating merchants that utilize the Inventory Information Approval System (IIAS). Be sure to retain your receipts.
Dependent Care Flexible Spending Accounts
Dependent Care FSAs are for daycare expenses for dependents up to the age of 13 and disabled spouse/dependent of any age. You may elect from $100 minimum up to $5,000 maximum ($2,500 if married filing separately). Elections cannot be changed during the plan year unless you experience a qualifying event.
You may elect to enroll in a Health Care Spending account and/or a Dependent Care Spending account.
You can use the FSA Calculator to estimate how much to contribute based on your anticipated medical expenses. It also calculates how much you can save in taxes by contributing pre-tax dollars into your FSA.
Discovery Benefits Website and Contact Information:
Visit www.discoverybenefits.com to create a personal login to access forms, balances, payment status, debit card activity and submit claims. You can also speak to a live representative Monday through Friday 7:30a.m. – 7:30p.m. toll free (866)451-3399.