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Contact Information
Provess Flexible Benefits
4050 Katella Avenue, Suite 213
Los Alamitos, CA 90720
Phone: (866) 639-5289
E-Fax: (866) 264-4093
E-mail: admin@provess.com
Palm Springs and Midwest Locations...
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Health Care Flexible Spending Account (FSA) Explained.
A Health Care Flexible Spending Account (FSA) is designed to reimburse for out-of-pocket health care expenses incurred by you or your eligible dependents that are not reimbursable through any other benefit. Examples of eligible expenses are deductibles, copays, prescription eyeglasses, vision exams, dental expenses and many others. Consider for a moment the savings...20% to 40% less out of your pocket for health care expenses you have to pay for anyway! This is the value of a Flexible Spending Account.
Here is how an FSA works. You decide to have an amount of your choice (goal amount) to be deducted incrementally from your paycheck. These contributions to your personal flexible spending account are made before any taxes (payroll or income) are taken from your earnings. You then file claims against your FSA for reimbursement of eligible expenses you have incurred during the plan year. It is the opportunity to pay for eligible medical, dental, pharmacy and vision expenses with earnings that have not been taxed that provides the great value of an FSA. You may be reimbursed for eligible expenses up to the annual goal you have elected to contribute.
The Internal Revenue Service has defined what expenses are eligible for reimbursement and it is always best to verify the eligibility of an item or service prior to incurring the expense.
It is worth noting that your entire elected annual contribution goal amount is immediately available upon your enrollment in the Health Care FSA plan, even before you have made all of your payroll contributions to meet your elected goal amount. You must also remember to use all of your contributions each plan year as no contribution amount may be carried over to subsequent plan years.
Open enrollment for the Health Care FSA occurs annually. You must elect to participate in an FSA each year before the plan year begins. New employees may enroll in an FSA during their designated benefits election period. Changes to your FSA elections can only be made if you have experienced a qualified life status change.
It is important to remember that a Flexible Spending Account is not a savings account. You must use all of your contributions each year or risk losing any unused balance at the end of the plan year.
Plan Your Contributions
To avoid having any left over unused contributions at plan year end, you simply need to plan your contributions and monitor your account balance regularly. The planning part occurs during the annual enrollment period for the upcoming new plan year. You are asked to re-elect your annual contribution to your FSA each year. Before you make your election you should make a list of anticipated eligible expenses for yourself and any covered dependents. It is also a good idea to identify in advance a few eligible expenses and hold them "in reserve" in case you find you have an account balance remaining as the end of the benefit plan year approaches. For example, in order to use up any remaining account balance, you could purchase a pair of prescription sunglasses, have your teeth cleaned or replace an expiring prescription.
You may also print a copy of the FSA Employee Brochure CC-24 ca 0509 and use it to tabulate your anticipated eligible expenses.
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Flexible Benefits
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January 2010