How the Plan Works
During Open Enrollment, an employee who chooses to participate in a flexible spending account elects the monthly dollar amount for pretax payroll reduction. This amount is deposited into the flexible spending account on a monthly basis. After the employee incurs and pays out of pocket expenses, the employee submits a copy of the receipt and a claim form to BAC for reimbursement from the account. Alternately, for the healthcare flexible spending account only, the employee may obtain a debit card that will come preloaded with the employee's chosen annual election. As always, the employees that participate in flexible spending are required to keep all receipts for these qualified purchases - but in the case of the debit card user, they only need to turn them in to BAC when requested.
Expenses are claimed based on the date services were provided, not on the date services are paid. Qualified expenses incurred during the plan year (July 1 - June 30) are reimbursable. In addition, a grace period has been instated which allows the employee to continue incurring qualified expenses through August 31 as part of the previous July 1 - June 30 plan year.Expenses incurred must be filed as claims prior to September 30, each plan year. Any expenses incurred for flexible spending that have not been submitted for reimbursement by September 30 are considered unclaimed funds and will be forfeited.
Health Care Flexible Spending Account
This account allows employees to set aside pre-tax dollars for out-of-pocket medical, prescription and dental expenses (amounts that have not already been paid or reimbursed by insurance) such as deductibles and coinsurance, copayments, vision expenses and other health care related expenses. Over-the-counter medications (except insulin) are no longer eligible for reimbursement. Over-the-counter medications with a prescription, will continue to be reimbursable through your flexible spending account.
Dependent Care Flexible Spending Account
This account allows an employee to pay for child care or for the care of a disabled child or elderly dependent parent living with the employee, with pre-tax dollars. Because total family income is one factor in determining whether this plan will provide favorable tax treatment over the current child care tax credit, please review examples provided in the Flexible Spending Account Summary Plan Description and in the Dependent Care flyer.
Limited Purpose Flexible Spending Account
As of July 1, 2015, SPU will be adding a limited purpose FSA that can be used for dental and vision expenses only. This is the only FSA option that can be used by employees who also have a Health Savings Account (HSA).
Why would I wanted to have a limited FSA and an HSA?
- Having a limited FSA along with your HSA can allow you to maximize your tax savings! For example, if you anticipate that you will have dental and/or vision expenses this year, you can defer up to $2,550 into your limited FSA, save the taxes on those expenses and let that money accumulate in your HSA for future use.
Once you reach the minimum deductible for medical expenses, the monies in your limited FSA can be used for medical expenses as well after that date. This is helpful if you anticipate medical costs that will end up exceeding the deductible.
What if I terminate?
- If you or your coverage terminates, you keep the account balance with your HSA and are responsible for all fees incurred by this account. Contributions can only be made while you are enrolled in the HDHP but the funds in the account are available for qualified medical expenses, as well as for COBRA or continuation of coverage premiums if on unemployment.
- The limited FSA will terminate based on the last date of employment, and expenses incurred after this date will not be eligible for reimbursement.
Please see the flyer for more information.
Premium Only Plan
Seattle Pacific University makes it possible to pay benefit premiums such as medical, dental and vision with pretax dollars through the Premium Only Plan. Participation is automatic unless the employee completes a waiver form.
During the annual Open Enrollment employees are automatically re-enrolled in the Premium Only Plan, unless the employee completes a waiver form at that time.
Forms
FSA's are administered by Benefit Administration Company (BAC). Forms may be printed or filled in online.
- Healthcare Reimbursement Form
- Dependent Care Reimbursement Form
- Benefits Card Enrollment Form
- Reimbursement Direct Deposit Authorization
- IRS-Allowed Reimbursable Expenses (may be used for both Healthcare FSA and Health Savings Account (HSA)
BAC Contact Information
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