FSAFEDSTHE FEDERAL FLEXIBLE SPENDING ACCOUNT PROGRAM

MORE MONEY IN YOUR POCKET!

Program Overview

THAT’S MORE MONEY IN MY POCKET!

April 10, 20233

What is a FlexibleSpending Account?

An account where you contribute money from salary BEFORE taxes are withheld

A way to save money on day care and health care services and items for you and your family

A Fed-friendly tax breakKey Benefit: More Money in Your Pocket!

April 10, 20234

How does FSAFEDS work?

1. Estimate your expenses and determine your annual contribution from salary, pre-tax

2. Enroll in a Health Care, Limited Expense Health Care or Dependent Care FSA

3. Incur eligible expenses

4. Submit your claims*

5. Get reimbursed FAST*A few exceptions, discussed later

April 10, 20235

How do you save money with FSAFEDS?

Your contributions to FSAFEDS are deducted from your salary BEFORE taxes…just like Thrift Savings Plan contributions.• You’re going to have these expenses, so why pay more in taxes

than you have to?• The average person will save about 30% each year• A Fed earning $50,000 and contributing $2,000 to an FSAFEDS

account will have around $600 more to spend • PUTS MORE MONEY IN YOUR POCKET!

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Savings Illustration

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Three types of FSAs

1. Health Care FSA (HCFSA)

- For eligible health care expenses not paid by FEHB, FEDVIP or any other insurance

$250 minimum election per year$2,500 maximum election per year – this IS NOT a household limit,

your spouse may have a separate account

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Three types of FSAs (cont.)

2. Limited Expense Health Care FSA* (LEX HCFSA)

- For those enrolled in or covered by a High Deductible Health Plan (HDHP) with a Health Savings Account (HSA)

*Limited to only eligible dental and vision expenses not paid by FEHB, FEDVIP or any other insurance

$250 minimum election per year$2,500 maximum election per year – this IS NOT a household limit,

your spouse may have a separate account

April 10, 20239

Three types of FSAs (cont.)

3. Dependent Care FSA (DCFSA) - For eligible non-medical day care expenses (childcare, eldercare)

so you (or your spouse) can work, look for work or attend school full-time.

$250 minimum election per year$5,000 maximum election per year – this IS a household limit and

includes any child care subsidy amounts and other FSA dependent care accounts

Note: You (and spouse) must have earned income during the year, even if looking for a job.

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Eligibility for FSAFEDS

Must be employed by an Executive Branch Agency or another organization offering FSAFEDS

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Eligibility for FSAFEDS (cont.)

HCFSA • Must be FEHB eligible• Participants do not have to be enrolled in FEHB

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Eligibility for FSAFEDS (cont.)

LEX HCFSA • Must be enrolled in or covered by an HDHP with an HSA under

the FEHB

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Eligibility for FSAFEDS (cont.)

DCFSA • Do not need to be FEHB-eligible or enrolled in FEHB

• Ineligible: intermittent employees expected to work fewer than 180 days/year

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Administrative Fees

All agencies pay the fees for their employees Employees do not pay fees to participate

PUTS EVEN MORE MONEY IN YOUR POCKET!

Eligible Expenses

USING FSAFEDS IS EASY AS PIE

April 10, 202316

HCFSA Eligible Expenses

Health care expenses not paid by FEHB or FEDVIP or any other insurance

Expenses incurred by you and/or your

dependents are eligible

April 10, 202317

Typical HCFSA Expenses

Co-payments, co-insurance and deductibles (but not insurance premiums)

Chiropractic careContact lenses, solutions, cleaners and casesDental care (Including crowns, endodontic services,

implants, oral surgery, periodontal services, sealants, etc.)

Diabetic suppliesFirst aid kits

April 10, 202318

Typical HCFSA Expenses (cont.)

Flu shotsFoot care (e.g., athlete’s foot products, arch supports,

callous removers, etc.)Hearing aids (including batteries)Home diagnostic test and kits (e.g., cholesterol,

colorectal screenings, etc.) Home medical equipment (wheelchairs *, oxygen,

respirators, etc.)Orthodontia

*With Letter of Medical Necessity

April 10, 202319

Typical HCFSA Expenses (cont.)

Over-the-counter non-medical items, such as, but not limited to band aids, braces & supports and reading glasses

Over-the-counter drugs and medicines WITH a prescription – insulin is the exception

Physical therapyPrescription drugsProstheticsPsychiatric services and care

April 10, 202320

Typical HCFSA Expenses (cont.)

Substance abuse treatment

Transportation expenses related to medical care

Vision care (including eyeglasses, prescription sunglasses, refractions and vision correction procedures)

For a complete list of eligible expenses, go to www.FSAFEDS.com and click on “Eligible Expenses Juke Box” under the “Quick Links” drop-down menu

April 10, 202321

Ineligible HCFSA Expenses

Day care expensesCosmetic procedures (unless required to restore

appearance or function due to disease of illness)Expenses you claim on your tax income returnExpenses reimbursed by other sources, such as

insuranceFitness programs (unless medically necessary*)

*With Letter of Medical Necessity

April 10, 202322

Ineligible HCFSA Expenses (cont.)

Hair transplantsInsurance premiums, including COBRA, Tricare, dental,

vision and long term care insuranceOver-the-counter drugs and medicines (except insulin)

unless prescribed by a physicianPhysician retainer fees including boutique and

concierge practice membership feesWeight loss programs and drugs for general well-beingExpenses incurred after March 15, 2015

April 10, 202323

LEX HCFSA Eligible Expenses

ONLY Dental and Vision expenses• Not paid by FEHB, FEDVIP or other insurance

Expenses incurred by you and/or your dependents including:• Dental – cleanings, fillings, crowns, orthodontics and over-the-

counter items such as denture care products, but not toothpaste• Vision – eyeglasses, refractions, vision correction procedures,

contact lenses, solutions, cleaners and cases

April 10, 202324

DCFSA Eligible Expenses

Day care expenses that let you (and your spouse):• Work• Look for work• Attend school full-time

For children under age 13 and any dependent who is mentally or physically incapable of self-care

Services cannot be provided by your dependent If you or a spouse have looked for work, you must have found a

job and have earned income at some point during the year. If a spouse is a full-time student or incapacitated, he or she does not to have any earned income during the year.

April 10, 202325

Typical DCFSA Expenses

Child care at a daycare center, day camp, sports camp, nursery school or by a private sitter

Late pick-up feesBefore and after-school care (but not tuition)Adult day care expensesAu Pair placement fees and weekly stipendExpenses for a housekeeper who also cares for an

eligible dependent

April 10, 202326

Ineligible DCFSA Expenses

Health care expensesEducation or tuition feesLate payment feesOvernight campsSports lessons, field trips, clothingTransportation to/from care providerExpenses incurred after March 15, 2015

April 10, 202327

Benefit Period

Employees must enroll each Open Season to participate in the following benefit period

Enrollments do not carry over year-to-yearBenefit Period = January 1 through March 15 (of the

next year)Salary contribution deducted equally

among pay dates during the calendar year (January 1 – December 31)

April 10, 202328

Online Calculator

Interactive savings calculator available online at www.FSAFEDS.com • Enter salary and tax information• Enter FSAFEDS contribution amount• Enter estimated expenses• Calculate potential annual tax savings

April 10, 202329

Payroll Deduction Process

Employee identifies employing agency during enrollment

FSAFEDS submits enrollment information to BENEFEDS

BENEFEDS coordinates payroll deductions with your payroll provider

BENEFEDS provides FSAFEDS with confirmed allotment information. FSAFEDS updates participant accounts.

April 10, 202330

Availability of Funds

DCFSA: only amount of current account balance is available for claim reimbursement

HCFSA & LEX HCFSA: total annual election is available once agency information is confirmed

April 10, 202331

“Use-or-Lose” Rule

You must forfeit money unspent at the end of the Benefit Period (March 15th)• IRS Rule (Section 125 of IRS Code)• No exceptions

You must file claims by April 30th following the end of the Benefit Period

Plan carefully when making elections

April 10, 202332

Extra 2 ½ Months

If you enroll during Open Season, you have from January 1 to March 15 of the next year to incur eligible expenses

14 ½ months to spend your annual electionYou forfeit any FSA money not spent on eligible

expenses by March 15, 2015 You have until April 30, 2015 to file claims

April 10, 202333

Tracking Account Balances

Secure online account access via My Account Summary

www.FSAFEDS.com Call toll-free

1-877-FSAFEDS (372-3337)TTY line: 1-800-952-0450

Reimbursement Statement sent when claims processed

Account Statements sent in January, March and October

Federal Benefits Open Season EnrollNovember 11 – December 9, 2013Enroll early to avoid the last minute rush!

THAT’S MORE MONEY IN MY POCKET!

April 10, 202335

Enroll Online

Go to www.FSAFEDS.com Follow the simple enrollment process Receive personalized confirmation

• Will appear at the end of the enrollment process• Will automatically be emailed to you if you provide an email

address during enrollment• Will be available via My Account Summary

April 10, 202336

Enroll By Telephone

FSAFEDS Benefits Counselors • Toll-free 1-877-FSAFEDS (372-3337) • TTY line: 1-800-952-0450• Monday – Friday, 9:00 a.m. – 9:00 p.m. ET

April 10, 202337

Enrollment Requirements

Must meet eligibility requirements for FSAFEDS participation

Must agree to Electronic Funds Transfer (EFT)• Fast reimbursement

April 10, 202338

Enrollment Options – HCFSA Only

Paperless Reimbursement (PR)• Available with many (not all) FEHB plans• Claim filed with FEHB plan • FEHB plan forwards out-of-pocket expenses directly to FSAFEDS • Often no out-of-pocket payment• Payment made directly to you from FSAFEDS account via

Electronic Funds Transfer • Some dental and vision claims require manual submission –

please check the website

April 10, 202339

PR - Participating Plans

Aetna Medical PlanAPWU Health PlanBlue Cross and Blue Shield Service Benefit PlanCompass Rose Health Plan (formerly ABP)Foreign Service Benefit PlanGEHA HumanaMail Handlers Benefit Plan

April 10, 202340

PR - Participating Plans (cont.)

M.D. Individual Practice Association Inc.NALC Health Benefit PlanSAMBA Health Benefit PlanUnitedHealthcare Insurance Co., Inc.

April 10, 202341

PR - Participating Plans (cont.)

FEDVIP PlansAetna (Dental)GEHA (Dental)United Concordia (Dental)FEP Blue Vision (Vision)Vision Service Plan (Vision)

April 10, 202342

New Employee Enrollment

New employees have 60 days to enroll Must enroll before October 1Otherwise, must wait for next

Federal Benefits Open Season

April 10, 202343

Enrollment Changes

May change election(s) at any time during Open Season

Qualifying Life Event (QLE) required outside Open Season

April 10, 202344

Qualifying Life Event

QLEs defined by IRS:• Change in marital status• Change in number of dependents• Change in dependents’ eligibility

(e.g., child turning age 13)

• Change in cost or coverage (DCFSA only) (e.g., day care fee increase)• Change in employment or residence• Change in military duty status

April 10, 202345

Qualifying Life Event (cont.)

Requested change must be consistent with event that prompts change

For example:• Increase DCFSA or HCFSA election after birth or adoption of

child• Decrease DCFSA election if spouse stays home with child

April 10, 202346

Qualifying Life Event (cont.)

Must notify FSAFEDS of QLE from 31 days before to 60 days after event

To submit a request online, login to “My Account Summary” and access the “Qualifying Life Event” section.

Follow the simple instructions to submit your request online

If you prefer to print a QLE form and save a copy for your records, the QLE form is still available under “Forms” at www.FSAFEDS.com

April 10, 202347

Qualifying Life Event (cont.)

Fax or mail your form to FSAFEDS You may submit your request either online or by form,

but you may not do BOTH

FSAFEDS will verify that event was a QLE and process requested election change

QLE for birth/adoption of child is retroactive to date of event; all others are prospective

Can only reduce elections to the amount already on deposit or reimbursed

April 10, 202348

Separation/Retirement

No further allotmentsDCFSA balance, at separation, is available for eligible

expenses incurred until end of Benefit Period or until balance is depleted• No refund available

HCFSA terminates at separation• Only expenses incurred before separation are eligible

for reimbursement • No refund available

April 10, 202349

Leave Without Pay (LWOP)

Agencies will not withhold allotments during non-pay status

Options:• Pre-pay elections through accelerated allotments• Freeze account until return to pay status (Allotments

recalculated across remaining pay dates)If LWOP is due to a QLE, participant can cancel or

reduce annual election, if consistent with the QLE

Claims & Reimbursement

USING FSAFEDS IS EASY AS PIE

April 10, 202351

Claim Forms

Available online

www.FSAFEDS.com Request by telephone or email

• 1-877-FSAFEDS (1-877-372-3337)• TTY line: 1-800-952-0450• FSAFEDS@adp.com

FAX or mail claim to FSAFEDS • 1-866-643-2245 (toll-free, inside U.S. only) or• 1-502-267-2233

April 10, 202352

Required Documentation: HCFSA and LEX HCFSA

Completed and signed claim form

AND Explanation of Benefits form (EOB)

• From FEHB or FEDVIP or other insurance• Must indicate type of service, date(s) of service, amount owed

April 10, 202353

Required Documentation: HCFSA and LEX HCFSA (cont.)

OR Detailed receipts

• Must indicate type of service, date(s) of service, amount paid

None, with Paperless Reimbursement

April 10, 202354

Required Documentation: DCFSA

Completed and signed claim form

ANDCopies of bill or signed receipt

ORHave provider complete Part III of claim form Include provider’s tax ID or SSN on all claims

April 10, 202355

Online Claim Submission (NEW!)

Go to www.FSAFEDS.comSelect “Online Claim Submission”Enter and save claim information as directed Upload appropriate claim documentation as

a .PDF, .JPG or .TIF fileCheck the box and select the “I Certify” button to

submit the claim

April 10, 202356

Reimbursement Reminders

Expenses are incurred on date of service, not when expense is paid (Orthodontia is an exception)

Expense must be incurred AFTER effective date of enrollment AND during the Benefit Period

All claims must be postmarked or faxed by April 30, following end of Benefit Period

Unclaimed funds are forfeited and used to offset administrative costs of the FSAFEDS program

April 10, 202357

Contact Us

www.FSAFEDS.com FSAFEDS@adp.com 1-877-FSAFEDS (372-3337) TTY line: 1-800-952-0450 Benefits Counselors are available Monday through Friday, 9:00

a.m. to 9:00 p.m., ET