It will save money by allowing you to pay for unreimbursed health expenses with pre-tax dollars.
You can enroll between September 17 and November 9, 2001 for the year beginning January 1, 2002.
First you must enroll. To request an enrollment kit, call 1-800-358-7202 and press 1. You can also download enrollment forms at www.flexspend.state.ny.us. Once you receive the kit, fill out the enrollment form and submit it to your agency Health Benefits Administrator (HBA) by November 9, 2001. The enrollment form requires you to estimate your out-of-pocket expenses for the coming calendar year. Based on your estimate, you decide how much to deduct from your paycheck before taxes to contribute to your HCSAccount.
Your estimate can include any of the following for you as well as family members: copays for prescriptions, office visits and lab costs; deductibles and other fees paid to non-participating providers; dental and vision costs that exceed annual insurance maximums; and medically necessary services and expenses not covered by insurance. You should include regular, recurring expenses, not one-time costs.
Yes. You may contribute any amount from $150 to $3,000 annually in pre-tax dollars.
The Internal Revenue Service sets the rules on eligible expenses, which include: any unreimbursed medical, dental and vision expenses such as copays and deductibles, acupuncture, braille books and magazines, capital expenses to install special equipment in your home for medical care for a family member, contact lenses and products required for their care, dental services, laser surgery for vision correction, and special telephone equipment for a hearing-impaired person. More details are available in IRS Publication 502 which is available at their website: www.irs.ustreas.gov/prod/forms_pubs/pubs/p502toc.htm
You will receive claim forms for reimbursement. Fill out a claim form and attach a receipt, bill or invoice from your provider. The Plan Administrator will either send you a check or electronically deposit the money in your bank account. At any time during the calendar year, a claim will be paid in full, up to the annual amount for which you have enrolled, even if your claim is greater than the balance in your account.
It is very important to estimate conservatively because the IRS has a rule called "use it or lose it." This means that if you don't file claims for reimbursement by the end of the calendar year, or during the extra 3 months following the end of the year, you will lose any money remaining in your account.
Once you sign up your deduction is set for the calendar year according to IRS rules. Only certain "qualifying events" such as marriage, divorce, or the birth or adoption of a child may permit you to change the amount of your deduction.
You are eligible if you meet the following criteria:
- Must be eligible for enrollment in the New York State Health Insurance Program, although you don't have to be enrolled, i.e., you could receive health insurance through a spouse employed elsewhere but still participate in HCSAccount as long as you're eligible for NYSHIP enrollment;
- Must be permanent, i.e., not hired on a temporary basis;
- Must be in an annual salaried position; and
- Must work 50% or more on a regular schedule.
Employees are not eligible if they are paid on an hourly, daily or fee basis, student employees, casual or seasonal employees, hired as temporary employees, or scheduled to retire before the plan year begins.
Call the Plan Administrator at 1-800-358-7202 or visit the web site at www.flexspend.state.ny.us. If you can't get an answer to your question, call PEF Health Benefits at 1-800-342-4306 or 518-785-1900, ext. 283.
