Flexible Spending Account

Flexible Spending Account Program

P.O. Box 19000, Portland, OR, 97280-0990; Tax I.D.#: 93-0575187

Open Enrollment for Flexible Spending Account

November is open enrollment time for the flexible spending account program for the plan year (calendar year) 2012. Flexible spending accounts (FSA’s) are a great way to save money. For more information follow one of the links below:

Open Enrollment for monthly benefits eligible employees
Open Enrollment for bi-weekly part-time faculty who have completed 600 contact hours (eligible for dependent care expense account only)

Important News About Over-the-Counter Medicines

As of January 2011, many over-the counter (OTC) medicines are no longer be eligible for FSA reimbursement without a prescription or letter of medical necessity from a medical provider. These changes are required by federal healthcare reform legislation passed in March 2010. Examples of items no longer eligible for reimbursement without a prescription or letter of medical necessity are cough medicines, pain relievers, allergy medicines, acid controllers, and diaper rash ointments. The new rule does not apply to insulin, nor does it apply to items for medical care that are not medicines or drugs (e.g., crutches, bandages, diagnostic devices, etc.). For more information, please read Important News about over-the-counter medicines. (Please note when reading the information in this link that the Benny Prepaid Benefits Card does not apply to PCC employees).

What is a flexible spending account?

A flexible spending account (FSA) is a benefit plan that allows you to set aside tax free dollars from your pay check into a special account that can be used throughout the year to reimburse yourself for eligible out-of-pocket expenses. Since you are “paid back” out of an account that is never subject to taxes, the bottom line is that you pay less tax on your total earnings. PCC has adopted the FSA program, administered by Manley Services to provide money-saving alternatives for qualifying, participating employees and their dependents.

Who is eligible to participate?

Eligible employees include Classified, Managerial, Academic Professional, Confidential, full-time faculty, and part-time faculty who have completed 600 contact hours (part-time faculty are eligible for dependent care expense account only).

What type of accounts may I set up?

You may set up a “Health Care Expense Account” to pay for certain out-of-pocket medical/dental expenses not covered by insurance, and/or a “Dependent Care Account” to pay for eligible daycare expenses. Part time faculty may set up a Dependent Care Account only.

When may I enroll?

If you are a regular, benefits-eligible employee, you may enroll within the first 30 days of your date of hire, or during FSA open enrollment in the fall. Part-time faculty may enroll within 30 days of completing 600 contact hours, and also during open enrollment in the fall, provided they have completed the requisite hours. Certain qualifying events may allow you to add an FSA outside of open enrollment including changes in legal marital status, number of dependents (birth, adoption, death), and employment status.

How do I set up an account?

You will first need to determine how much money you want to set aside from your paycheck for your flexible spending account(s). Consider last year’s out-of-pocket medical and dependent care expenses, any medical/dental care costs you foresee that might not be covered by insurance, and any changes in your family or work situation that may impact these expenses. This worksheet may be helpful in determining your expenses.

If you choose a health care account, you may elect up to $3,000 per year for eligible health care expenses. If you choose the dependent care account, you may elect up to $5,000/ year per household for day care expenses, or $2,500 each if married and filing a separate tax return. Your salary reductions for a dependent care account will be used to pay for expenses you incur for the care of an eligible dependent as defined by the Internal Revenue Code which may include elder care for a parent living in your home.

After determining how much money to set aside monthly from your paycheck, you will need to complete and submit a FSA enrollment form to Employee Benefits, DC 321. Unlike health benefits, you must re-enroll each plan year to continue your participation in the FSA program.

How do I get money out of my accounts?

An FSA reimbursement form with required documentation will need to be submitted by fax (1-866-446-6090) or mail (P.O. Box 2797, Portland, OR 97208-2797) to Manley Services. If you wish, you can directly deposit your reimbursement check into a bank account.

How Does FSA Operate?

General Rules

Only expenses incurred on or after your FSA participation start date and prior to the end of the plan year are eligible for payment under the plan. An expense incurred on the date that a service is provided or rendered is eligible for payment, and not on the date that the service is billed or paid. In the cases of termination, participation ends on the last day of the month in which you terminate.
Expenses for domestic partners and their children are not eligible for reimbursement since the federal government does not recognize domestic partnerships.
You may submit claims incurred during your plan year for 90 days after the end of the plan year, March 31. Claims submitted beyond this “run out” period, following the end of the plan year will be ineligible for reimbursement.
Once enrolled, you must remain a participant for the entire plan year unless a qualifying event occurs which may allow you to make an election change (see “When May I Enroll?”)

Use It or Lose It

This is a key point you must understand: If you have set aside dollars through salary reduction, and you do not use those dollars for claims incurred by the end of the plan year, you will lose your money. Because of this, it is recommended that you be conservative in the amount you set aside, especially if this is your first time using the FSA accounts. Also, it’s worth noting that many medically-related, over-the-counter expenses can be reimbursed from the Health Care Account. If you’re ending up the plan year with money left over, check to see what over-the-counter products you could purchase to take full advantage of the money you’ve set aside.

Appeals

You may appeal a claim denial by submitting a Request for Review to Manley Services within 60 days after the earlier of the date of notice of your claim denial or the expiration of ninety (90) days after your claim was submitted. Contact a Benefits Specialist for more information (see below).

Additional Information

The above summary is intended to highlight only the major benefit provisions of the FSA plan. It is not meant as a Summary Plan Description for plan participants, nor does it intend to summarize the full provisions, limitations and exclusions of this plan. Please refer to the College’s Summary Plan Description for detailed information regarding the operation of the FSA program.

Questions?

Check out Frequently Asked Questions web page or contact a Benefits Specialist: Kim Searcy, Paula Johnson , Jonna Alexander.