SMART people know there are rules and regulations.

The Internal Revenue Service code section 125 spells out the regulations. In exchange for the favorable tax treatment of the HFSA, the IRS has a few rules.

Reimbursement of eligible expenses: You may incur expenses and request reimbursement from your HFSA as early as May 1. You can get reimbursement up to your entire annual election, even if the entire amount has not been deducted.

For example: You elect $240 for the year. Deductions of $10 begin in May. On June 1, you incur an out-of-pocket expense of $45 for an allergy specialist office visit and a prescription copayment of $30. You will be reimbursed the entire expense of $75, even though only $20 has been deducted from your two paychecks in May. Payroll deductions of $10 will continue for the rest of the year.

Changing your election: After the annual enrollment, you can only change your HFSA election during the plan year, May 1 – April 30, if you have a change in family status. Events such as marriage, divorce, legal separation, or birth of a child allow you to increase your annual contribution, but only up to a maximum of $2,000. You may not reduce or stop contributing during the plan year.

Use it or lose it explanation: It is very important that you carefully calculate the amount you put into the HFSA. Here’s why: If money is remaining in your HFSA account at the end of the plan year, April 30, and unclaimed through the 90-day claim period that ends July 29, it will not be returned to you.

You will forfeit the account balance. Your balance will not rollover to the next year. Because of the use-it-or-lose-it rule, it is very important for you to carefully estimate your out-of-pocket health care costs for the upcoming 12-month period.
While the plan year ends April 30, you will have until July 29, to file claims for any expense you incurred between May 1, and April 30.

Don’t let these rules scare you away from this important benefit, especially if you or your family will have unreimbursed health care expenses in the next 12 months. Don’t let the federal government take more than its fair share of your hard-earned dollars!

		SMART idea Staring at the computer screen eight hours a day is drying out your contacts. But you don’t like wearing your glasses, which are a little crooked and pinch your nose. So you’re considering laser eye surgery, but it seems a little expensive. Laser eye surgery is one of many expenses eligible for HFSA, meaning you can save money on the procedure if you allocate a portion of your paycheck to your personal account. It’s like saving money on the procedure.

How much should I contribute?

How much did you pay in copayments this year for doctor and dental visits? For prescriptions? Plan to get a new pair of glasses? Are you expecting to go to the hospital next year? Do you calculate your mileage to and from the doctor? Use these questions to estimate your expenses for next year. Use the worksheet on the back cover to help you with your calculation.

To estimate how much you should contribute to your HFSA, add up the anticipated costs for routine medical and dental checkups and for major expenses, such as braces, for you and your family that will not be reimbursed by any other insurance plan. Estimate what you will spend May through April. Any expense the IRS considers deductible, that is not reimbursed through a health plan, is eligible for reimbursement from your HFSA.

Some of the most common reimbursable expenses are annual deductibles, copayments, contact lenses, glasses, hearing aids, and prescription drug copayments.

Expenses not recognized by the IRS, and not reimbursable, include cosmetic surgery and health club dues for general health purposes.

I’m in! How do I enroll?

Enrollment is voluntary and is as easy as completing an enrollment form available from your HR liaison.

As an employee, you can only enroll in this benefit during open enrollment, and your election is valid for the upcoming plan year. You will have to enroll every year during the annual open enrollment period.

Employees who begin work after May 1 can enroll during the first 90 days of employment. Coverage is effective on the 1st or 16th of the month after 90 days of employment. Your enrollment is valid for the rest of that plan year. You will have to enroll every year during the annual open enrollment period.

Annual open enrollment for this plan is held during March. Employees wishing to participate in the next plan year, May 1– April 30, MUST make an election during the this open enrollment.

To enroll, you must complete the applicable form and submit the form to the Human Resources Department.

Is it easy to file a claim?

It’s as easy as sending a fax. To file a claim for reimbursement from your account, obtain the flexible spending account claim form from the benefits division or online at www.aflac.com/us/en/docs/benefits/flexclaim.pdf and complete it. Provide the required documentation for your eligible health care expense.

Receipts from your health care provider must show:

* The name of the provider of the service.
* A description of the service or a list of the supplies furnished,
* The charge(s) for each service,
* The date(s) of service,
* The name of the person(s) receiving the service

Most official receipts from your doctor’s office will work.

Send your completed form and receipts to:
FLEXONE
1932 Wynnton Road
Columbus, GA 31999-9950

or fax it to: (877) 353-9256

Claims are paid weekly, on Tuesdays.

You can expect to receive your reimbursement check within 10 days after the Tuesday processing schedule. Most claims are paid and mailed within 7 days. You can receive faster payments when you sign up for direct deposit.

		Direct deposit sounds like a SMART idea. Direct deposit is a simple, convenient and safe way to automatically deposit your reimbursements into your bank account. With each deposit, you’ll receive a deposit notice which will contain the same information that comes with a check. To enroll in direct deposit, just complete the direct deposit authorization form and return it to FLEXONE. Be sure to include one of your voided checks or a savings deposit slip. After they receive your authorization agreement, FLEXONE will verify all information with a prenotification to your financial institution. Direct deposit will begin 10 calendar days following the prenote.

Where can I see how much money is in my account?

There are several ways that you can see your account balance:

Changes in family status
Because the plan allows you to reduce your taxable income, the IRS has some rules about changes during a plan year.

During a plan year, you can only change your participation in the plan if you experience a change in family status. Changes in family status, as defined by the IRS, include:

* Marriage or divorce,
* Gaining or losing a dependent,
* Termination or commencement of your spouse’s employment, or
* A change in job status from full-time to part-time and vice versa for you or your spouse.
* A child turning age 18 is not a change in family status.

If you have a change in family status and would like to increase your contribution, contact your HR liaison within 30 days of the change. The change must be consistent with the change in your family status. You may not reduce or stop contributing during the plan year.

Any change you make will apply for the rest of the plan year, unless you have another change in family status.

You can change your participation during the annual enrollment period for the upcoming plan year.

How do I get more information?
You can learn more about the Healthcare Flexible Spending Account from the following resources:

		SMART idea You’ve been allocating a portion of your paycheck into an HFSA to pay for over-the-counter medicines. But your doctor recently told you you’ve got diabetes. Although you hadn’t planned on this medical complication, you can use your HFSA to pay for your diabetic supplies. That’ll lessen the wallop to your wallet.