Board Meeting

Report
Lincoln Public Schools
Plan Year:
September 1, 2012 through August 31, 2013
1
© 2007 PAYFLEX SYSTEMS USA, INC.
What is an FSA?
Flexible Spending Accounts (FSAs)
Allows you to pay for certain out-of-pocket health care
expenses with “pre-tax” dollars. This means you get a tax
deduction for these expenses before you ever file your tax
return.
You don’t pay Federal income or Social Security taxes on
this money and, in most states, you don’t pay state taxes
either. On average you will save about 30% on your total
FSA contribution.
2
© 2007 PAYFLEX SYSTEMS USA, INC.
What does this mean to you?
Tax Savings!


Decrease Taxable Income
Increase Spendable Income
3
© 2007 PAYFLEX SYSTEMS USA, INC.
FSA Savings - Example
Real world example:

Let’s say someone in your family needs braces at an average
cost of $4,500. This is typically paid over the course of one or
two years. If you put this money into a Health Care Flexible
Savings Account you will save approximately $1,350 in taxes.
4
© 2007 PAYFLEX SYSTEMS USA, INC.
Eligible FSA Expenses
 Medical & dental deductibles,
co-pays and co-insurance
 Prescriptions
 Hospital expenses
 Selected durable medical
 Orthopedic devices
5
© 2007 PAYFLEX SYSTEMS USA, INC.
Eligible FSA Expenses
 Eye Glasses, contact lenses
 Saline/cleaning solutions
 LASIK surgery
 Hearing aids and batteries
 Orthodontic care
 Chiropractic expenses/
co-pays
 Insulin, syringes for insulin
6
© 2007 PAYFLEX SYSTEMS USA, INC.
Ineligible Healthcare Expenses










Over-the-Counter medication 
(certain OTC are eligible – refer 
to plan for more details)

Anti-Bacterial Soaps

Acne Treatments

Dandruff Shampoo

Dry Skin Creams/Treatments

Foot Care Products

Hair Loss Treatments
Electrolysis – hair removal
Cosmetic surgery
Teeth Bleaching
Mouthwash
Suntan /Sunscreen Lotion
Dietary Supplements
Supplements
Varicose veins treatment
Tattoo removal
Herbal supplements
Child birth classes
© 2007 PAYFLEX SYSTEMS USA, INC.
7
Calculating Your Contribution
 Determine out-of-pocket expenses that recur every year for you
and all of your dependents.
 Prescriptions, co-pays, etc.
 Braces
 Routine doctor visits – co-pays/non covered visits
 Estimate out-of-pocket expenses that you plan to incur during the
plan year (e.g., laser surgery, extra glasses, acupuncture)
 Use our expense planning worksheets to assist you in determining
your annual contribution (available at www.HealthHub.com)
8
© 2007 PAYFLEX SYSTEMS USA, INC.
Special IRS Plan Rules
 Once you establish your plan year contribution, you may only
change it if you experience a “life event” change.
 Qualifying events include: marriage, divorce, and death
 Any amount left in your flexible spending account at the end of
the plan year will be forfeited.
 Even if you or another family member are covered under
another health insurance plan, you can still participate in the
PayFlex FSA plan.
9
© 2007 PAYFLEX SYSTEMS USA, INC.
FSA Educational Tools







Comprehensive participant website
Online FSA expense planning
calculator and worksheets
Frequently Asked Questions
Eligible FSA expenses
Express Claims
Web-based FSA tutorial
Printable enrollment and claim forms
www.HealthHub.com
10
© 2007 PAYFLEX SYSTEMS USA, INC.
FSA Education Tools



Online FSA tutorial
Expense planning tools
Enrollment & claim forms
www.HealthHub.com
11
© 2007 PAYFLEX SYSTEMS USA, INC.
Frequently Asked Questions
How does an FSA account work?

You estimate the amount you will spend on out-of-pocket health care expenses

You decide how much you wish to set aside into your FSA Health Care
account

The amounts you wish to set aside into your accounts will come out of your
paycheck (on a pretax basis) in equal amounts each pay period

As you incur health care expenses throughout the year, you can submit a
claim form along with documentation of your expenses OR file your claims
online using our Express Claims

You will be reimbursed via check or direct deposit
12
© 2007 PAYFLEX SYSTEMS USA, INC.
Frequently Asked Questions
How much can I put into my FSA Account?
 Health Care account- $4000 for LPS this decreases to
$2500 for the 2013-2014 plan year
 Dependent Care account- $5,000 maximum per plan year
per the IRS
How often can I enroll?
 Annually – new employees can join off cycle
How much can I expect to save with and FSA?
 This depends on your tax bracket but on average about
30% of your total contribution/election.
13
© 2007 PAYFLEX SYSTEMS USA, INC.
Frequently Asked Questions
Do I have to save and turn in my receipt?
 Yes. You can file your claims via fax, mail or online
through our Express Claims service. Express Claims
makes it easy to submit your claim and in most cases
your claims are processed within 1 to 2 days.
If I don’t use the money in my account do I lose it?
 Yes. You must spend all the money in your account by
the end of the benefit year.
14
© 2007 PAYFLEX SYSTEMS USA, INC.
Dependent Care
15
© 2007 PAYFLEX SYSTEMS USA, INC.
Dependent Care Expenses
 Expenses necessary for you and, if married, your spouse to work
 Child Care or Adult Day Care Expenses
 Care for children under 13 or incapable of support
 Care for adult dependent incapable of self care
16
© 2007 PAYFLEX SYSTEMS USA, INC.
Qualifying Child Care Providers

Private Sitter

Licensed Day Care Provider

An in-home provider as long as the care provider is not
your child under age 19, or someone you claim as a
dependent for income tax purposes

Summer camps, except overnight camps

Tuition considered a day care expense through
preschool
17
© 2007 PAYFLEX SYSTEMS USA, INC.
Filing Paper Claims
 Complete a claim form and submit to
PayFlex via mail or fax
 Include itemized statement or an
Explanation of Benefits (EOB) statement
showing your out-of-pocket expense
 File paper claims as often as you wish
 Claims can be direct deposited to a
checking or savings account
18
© 2007 PAYFLEX SYSTEMS USA, INC.
PayFlex Contact Information
Please contact us with any questions!
PayFlex Systems USA, Inc.
Toll-free: (800) 284-4885
Website: www.HealthHub.com
19
© 2007 PAYFLEX SYSTEMS USA, INC.
Thank You
www.payflex.com
20
© 2007 PAYFLEX SYSTEMS USA, INC.

similar documents