Enrolling in HFSA - A SMART Play

All games have rules and regulations. So does the HFSA.

In exchange for the favorable tax treatment of the HFSA, the Internal Revenue Service has a few rules, which are spelled out in code section 125.

Reimbursement of eligible expenses: You may incur expenses and request reimbursement from your HFSA as early as May 1. You can be reimbursed up to the 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 $30 for a prescription copayment. You will be reimbursed the entire $75, even though only $20 total 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 open enrollment, you can only change your HFSA election during the plan year 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
It’s important that you carefully calculate the amount you put into the HFSA. If money is remaining in your HFSA account at the end of the plan, 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 roll over to the next year.

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!

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 this year? Are you expecting to go to the hospital early next year? What’s the mileage to and from your doctor? Use these questions to estimate your expenses for next year. View the calculation worksheet.

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 and that is not reimbursed through a health plan is eligible for reimbursement from your HFSA.

Some of the most common reimbursable expenses are 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.

Put me in coach!
Enrollment is voluntary and is as easy as completing an enrollment form available from your HR liaison. You have to submit the form to the Human Resources Department, benefits division, 611 Walker, 4th Floor.

You can only enroll in this benefit during open enrollment, and your election is valid for the upcoming plan year only. 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.

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 Healthcare 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 following:

• The name of the service provider
• 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.

Fax your completed form and receipts to 877-353-9256, or mail them the address below:

FLEXONE
1932 Wynnton Road
Columbus, GA 31999-9950

Claims are paid every Tuesday, barring a holiday.

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

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

1. There are several ways that you can see your account balance:
   Each reimbursement check contains account balance information.
2. A quarterly balance statement will be sent to you if you have not received a reimbursement check within the previous 45 days.
3. A balance statement will be sent to you prior to the end of the plan year and 90 days after the end of the plan year.
4. You can access reimbursement information by calling toll-free, 800-323-5391 or 877-353-9487.
5. For a sample log to maintain a record of your expenses, get a copy of IRS Publication 502. See page 20 of that document. You can get it at www.irs.gov/pub/irs-pdf/p502.pdf

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

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