There is still time to incur and file claims for both a medical and dependent care Flexible Spending Accounts (FSA), though the deadline is starting to approach. The eligible expenses section of WEX’s HSA and FSA toolkit provides an interactive listing of many medical goods and services that FSA or Health Savings Account (HSA) funds can be used for. The WEX mobile app provides an additional tool that allows users to scan an item’s bar code and be shown whether or not it is an eligible FSA and HSA expense.
Benefit eligible employees are able to support their financial wellness by making tax-free contributions to either a medical FSA or HSA depending on their medical insurance plan election. These contributions can be used to pay for medical bills, including co-pays, co-insurance and deductibles, as well as be used for medical goods and services such as over-the-counter medicine and other medical-related items found at pharmacies and retail stores. The number of eligible items has increased over time, so reviewing what is currently covered can help you maximize this benefit.
To be eligible for enrollment into an HSA, an employee must be enrolled in the High Deductible Health Plan (HDHP). Those enrolled in the PPO plan or not enrolled in any Marquette medical plan may enroll in a medical FSA. Whereas funds for an HSA roll over from year to year, FSA funds are tied to the plan year (which is the calendar year) and are forfeited if not used by the designated deadline. Marquette provides a 2.5-month grace period after the plan year ends to incur claims and file claims for reimbursement, with a firm March 15 deadline to do so.
Dependent Care FSA is an additional tax-savings opportunity that does not require enrollment into a medical insurance plan. This benefit allows eligible employees to contribute tax-free to an account that can be used to pay for eligible childcare expenses and, in certain circumstances, eligible elder care expenses. Like the medical FSA, claims need to be submitted by March 15 of the year following enrollment or unused funds will be forfeited. WEX’s eligible expenses list provides a listing of eligible expenses for dependent care FSAs as well.
With most individuals having some healthcare expenses each year, the HSA and medical FSA benefits provide a practical opportunity to lower taxable income and make it easier to pay for both expected and unexpected expenses. The dependent care FSA benefit furthers the tax savings opportunity for those who face the rising cost of childcare and other dependent care expenses.
Enrollment into either FSA benefit can only be done at annual enrollment, though HSA enrollment can take place year-round for those on the high deductible health plan. Information on these benefits can be found on Benefits and Wellness website, and any questions on these benefits can be directed to benefits@marquette.edu.
