commonwealth of massachusetts 2015 gic flexible spending account program 1
TRANSCRIPT
Commonwealth of Massachusetts
2015 GIC Flexible Spending Account Program
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Payroll Coordinator PacketsEmployee letter, brochure and poster – please
post and distribute
Coordinator letter – reminders for the FSA open enrollment
2014 Participants – must re-enroll online; instructions enclosed.
2015 Enrollment Form – for new hires and new participants. Check for completeness and complete bottom section. Forms due to ASIFlex no later than December 10, 2014.
Claim Form and Physician Statement – also on www.asiflex.com/gic and www.mass.gov/gic/fsa
Today’s presentation
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ASIFlexBased in Columbia, MO; 400 Clients Nationwide in
27 states, many public sector clientsWill take over 2014 grace period and 2015 claims
processing effective 1/1/2015Extended Customer Service Hours
8 am to 8 pm Monday through Friday 10 am to 2 pm Saturday
Participant Email [email protected]
Toll-Free Phone 1.800.659.3035 Fax 1.877.879.9038
The GIC has Selected a New Administrator for 2015
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Lower HCSA Minimum Election for 2015
Health CareSpending Account
(HCSA)
Dependent Care Assistance Program
(DCAP)
Maximum Election $2,500* $5,000
Minimum Election $250 No Minimum
* This may increase by $50 subject to IRS regulations
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Administrative Fee Reduced by 30%!
Monthly Participant Fee Reduced to $2.50!Savings of $1.10 per monthFor HCSA only, DCAP only, or bothCharged to participant account on pre-tax
basisDeducted in first pay period of each monthThis gives employees who have never
enrolled a chance to test it out!
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What is a Flexible Spending Account (FSA)?
Allows participants to set aside money on a pre-tax basis for certain expenses. Tax savings help offset rising costs of out-of-pocket health care and day care expenses.
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How Does a FSA Work?
Employee must enroll annuallyPre-tax elections are reduced from participant’s
pay checks including pre-tax administrative feeParticipant/Dependent(s) uses their Health Care
FSA debit card to pay for out-of-pocket HCSA expenses; funds immediately taken from their account
DCAP participants and non-debit card HCSA expenses processed through claim form
Participants must keep copies of all receipts per IRS regulations
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Health Care Spending Account (HCSA)
•For out-of-pocket health care expenses not paid by insurance – includes dental and vision care •Annual election available January 1•If a participant leaves state service, he/she is eligible for the entire annual election regardless of their contributions. However the employee can only file claims for dates of service prior to the termination date
•Participant may be eligible for COBRA• Reminder: when employees leave state
service – let them know about COBRA HCSA
HCSA Eligible ExpensesDoctors Fees and Expenses Ambulance Co-payments Deductibles for medical or dental Hospitalization Laboratory fees Physicals Vaccinations and immunizations
Dental Care Dental bridges Dental crowns Implants Orthodontia Routine dental cleanings
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Vision Care
Contact lenses Eye exams Eyeglasses Lasik eye surgery Prescription
sunglasses
Treatment, Therapy, and Wellness Programs
Acupuncture by a licensed practitioner Chiropractors Hypnosis for treatment of an illness Massage therapy* Mental health care Therapy by licensed therapists Weight loss programs*
*Must be medically necessary, meaning you have a qualified medical diagnosis and a recommended treatment plan from a health care professional. Claims must be filed manually accompanied by a physician's statement (required each year/available on website) or a prescription.
HCSA Eligible Expenses (Continued)
Athletic treatments Bandages Blood pressure monitors Cholesterol meter test kit and
supplies Contact cleaning Crutches, canes, walkers Diabetic monitors and supplies Eye glasses Eye related equipment Family planning products
Fertility monitors First aid kits Hearing aids and batteries Insulin test strips, testing materials and supplies Medical monitoring and testing
devices Orthopedic and surgical supports Pregnancy tests Urological products Wheelchair and repairs
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Note: Over-The-Counter drugs and medicine are only eligible for reimbursement through the FSA if accompanied by a doctor’s prescription.
Over-The-Counter Supplies
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Ineligible HCSA ExpensesCosmetic services (unless resulting from disease
or illness)Expenses claimed on tax returnExpenses reimbursed by other sources (e.g.,
insurance)Fees for exercise or health clubs (unless
prescribed by a physician for a medical problem)Hair transplantsInsurance premiumsVitamins for general well-beingWeight loss programs for general well-being
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HCSA Debit Card• Easy access to HCSA account funds
• Free set of 2 cards to all enrolled participants ($5.00 per additional set of cards)
• Use for co-pays, deductibles, co-insurance and other items not covered by insurance and over-the-counter medications
• Funds are deducted immediately from your HCSA
• No need to file claims
• Updates your account balance and transaction history
• Participants must retain all receipts – IRS mandate
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Dependent Care Assistance Program (DCAP)
• For eligible dependent care expenses that allow the employee (or the employee and their spouse, if married) to work or look for work, or that allows the spouse to attend school full time.
• Expenses must be for a dependent you can claim on your income tax return, who is under age 13, or physically/mentally incapable of caring for him/herself
• Your dependent must live in your home at least 8 hours per day
• Funds are available as contributions are made• If a participant separates from the plan, they are
eligible up to the contribution amount for any dates of services within the plan year
DCAP maximum: $5,000 per household* ($0.00 minimum)*Household maximum per plan year as per IRS
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Eligible Dependent Care Assistance Program Expenses
Care for dependent children up to 13th birthday
A person of any age who can be claimed as a dependent on federal income tax return and who is mentally or physically incapable of self care (includes elder care)
Child care at a daycare center, day camp, nursery school or by a private sitter
Before and after-school care (not tuition)Housekeeper caring for an eligible dependentAu Pair placement fees and weekly stipend
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Ineligible Dependent Care Assistance Program Expenses
Education or tuition fees
Late payment fees
Overnight camps
Agency fees for finding a care provider
Sports lessons, field trips, clothing
Mileage reimbursement to/from the care provider
Comparison of Post-Tax versus Pre-Tax Savings
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With FSA Without FSA
Annual Income $50,000 $50,000
Annual Pre-Tax FSA Contribution -$2,000 -$0
Annual Taxable Income =$48,000 =$50,000
Annual Tax Withholdings (approximately 25% of the annual taxable income)
$12,000 $12,500
TOTAL ANNUAL SAVINGS (approximately $250 for every $1,000 withheld in the FSA per year)
$500 $0
Multiple Claim Filing Options
Video – How to File a Claim
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Multiple Claim Filing OptionsReimbursement Options
Upload your scanned receipt online by logging into your FSA account www.asiflex.com/gic;
Take a picture of your receipt with your mobile phone and upload it using an iPhone or Android; or
Print the confirmation page and send in to ASIFlex with a copy of your receipt.
Claims Processing
Claim Forms are online at www.asiflex.com/gic and www.mass.gov/gic/fsa
Claims reimbursed within 1-3 business days of receipt
Multiple Claim Filing Options (continued)
iPhone/iPad and Android Mobile Applications Applications can be found via
Apple App Store Google Android Market
Through the application: Available balance Important filing dates View claims that require a receipt: submit those receipts using the mobile
device’s camera!
Text Message and/or Email Alerts Receive notifications about the following:
Receipt Reminders Claim Confirmation Denial Notifications Account Statements
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Help Employees EnrollDistribute materials to employees including a link to the
Kimberly video – the GIC will send to you via emailExplain why it’s helpful to the employee and his/her
family:- How much do you spend annually on prescription
drugs?- Do you purchase eye glasses or contact lenses?- How often do you visit the doctor?- How many dental visits do you anticipate?- What are your health insurance co-payments and
deductibles?- Do you have day care, elder care or after school care
costs?
Election Calculation AssistanceTax Saving Estimator
www.asiflex.com/gicHealth Care Expense Planning Worksheet
In your coordinator packetwww.mass.gov/gic/fsa
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“Use It or Lose It” RuleParticipants forfeit money unspent at the end of the
plan year
IRS Rule (Section 125 of IRS Code)
Funds cannot be rolled over to the next plan year and cannot be paid out without eligible expenses
Participants must plan carefully when making elections
2 ½ month grace period to spend down balances – expenses through March 15, 2016 for 2015 elections; claims must be submitted no later than April 15, 2016 (otherwise forfeited).
Transition to ASIFlex2014 FSA benefits administered by Benefit
Strategies through Monday, December 22, 2014. Contact them for 2014 claims: 1.877.353.9442
Benefit Strategies debit card active through Monday, December 22, 2014, if sufficient balance to cover the expense.
Deadline for 2014 paper claims through Benefit Strategies is Friday, December 19, 2014.
No 2014 claims will be processed through the end of the year after these two cutoff dates (December 22 for the debit card and December 19 for paper claims).
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Remaining Balances from 2014Beginning January 1, 2015, if employees have
remaining 2014 FSA balance:Submit claims to ASIFlex using the ASIFlex claim
form: www.mass.gov/gic/forms. Employees who re-enroll in benefits for 2015 can
use new ASIFlex debit card for 2014 balances. 2014 balances will be spent down before 2015
election.Participants in Comptroller’s pre-tax transportation
program, continue to use Benefit Strategies Visa debit card (“Benefits Card” and the Benefit Strategies logo are on the card).
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How Grace Period Claims Processed
If a participant has an available prior plan year account balance and is also participating in the current year plan
Expenses are paid from the prior plan year first for debit card or manual claim submission
Based on what claim/debit card transaction is recorded first (not what the earliest Date of Service is)
Not applicable to participants with a $0 prior plan year account balance or if participant did not have a prior plan year account
New Hire Benefit Effective Dates
60-day waiting period for HCSA benefit; refer to payroll calendar on next page for effective dates of new hires
No waiting period for DCAP benefit; effective immediately from hire date
Example: Susan Smith hired on 6/15/2015 would have an HCSA effective date of 9/1/2015 and a DCAP effective date of 6/15/2015.
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Payroll CalendarDate of employment is from HCSA Coverage begins on
Jan 2 – Feb 1 1 – Apr
Feb 2 – Mar 2 1 – May
Mar 3 – Apr 2 1 – Jun
Apr 3 – May 2 1 – Jul
May 3 – Jun 2 1 – Aug
Jun 3 – Jul 3 1 – Sep
Jul 4 – Aug 2 1 – Oct
Aug 3 – Sep 2 1 – Nov
Sep 3 – Oct 2 1 – Dec
Oct 3 – Nov 2 1 – Jan
Nov 3 – Dec 3 1 – Feb
Dec 4 – Jan 1 1 – Mar
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Qualifying Change in StatusEnroll in either plan, change contribution or terminate election during the Plan Year if have :Change in legal marital statusChange in number of dependentsChange in employee’s or spouse’s employment status (for example, employee hours increase making him or her eligible for the program, or spouse loses employment affecting enrollment in another FSA program. Change in work schedule which changes eligibility for the program.Dependent satisfies or ceases to satisfy eligibility requirements.Judgment, decree or order pertaining to child or spouse.
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Coordinator Ongoing Procedure Changes
See the GIC’s website for updated step-by-step procedures: www.mass.gov/gic/coordinator
Fax, don’t mail, to ASIFlex enrollment/change forms for qualifying status changes and new employeesNew hires: enrollment formStatus changes: change form
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Offline AgenciesContact ASIFlex to set up program: payroll file,
funding requirements, and instructions for setting up secure portal for communication.
Five days before each pay date, send FSA Contribution and Change Report to ASIFlex. If a report is not sent all participant accounts for your agency will be placed on hold. See website for report details: www.mass.gov/gic/coordinator.
You will receive a Discrepancy Report via secure portal or fax within two business days listing each discrepancy between what the FSA Carrier expected, and what was sent in the FSA Contribution and Change Report. You must resolve these discrepancies.
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2015 Payroll Audit Process – All
AgenciesAny participant not on each payroll file will
immediately have their Health Care FSA debit card and account placed on hold until the issue is resolved
Agency/Division payroll coordinators will be notified via email when an account is placed on hold
When issue has been resolved, Health Care FSA debit card will be reactivated and there won’t be a gap in coverage
Refunds Avoid refund requests: enter the correct deduction code(s),
deduction amount(s) and end date deduction(s) when entering terminations/leaves of absence.
To request a payroll refund check: Send the request via email to [email protected] Include the following information:
o Employee Nameo Employee IDo Deduction code(s) and amount(s) of refund; e.g. DCAP $50, HCSAF
$2.50o Reason for the refund; e.g. terminated state service, deduction
taken in erroro Name and address for the refund check: Refund checks will be
made payable to the Commonwealth of Massachusetts. The agency must refund the employee.
The GIC must approve the refund request and will work with ASIFlex to research.
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Important Dates Collect all HCSA/DCAP enrollment forms/online confirmation
pages (signed and dated) by December 5.Return all completed paper enrollment forms to ASIFlex by
December 10. (Don’t send online re-enrollment confirmation pages)
HR/CMS Agencies and UMASS: Enter both the DCAP and/or HCSA and HCSAF deductions into HR/CMS. The HCSAF fee is for either or both programs – HCSA and DCAP
Review payroll calendar for 2015 to ensure deductions are entered correctly. Both the HCSA/DCAP will be deducted each pay period. HCSAF deductions will be taken the first pay period of each month.
Prevent payroll errors: carefully review the enrollment forms, payroll deductions, codes, beginning and end dates entered into payroll system
Deductions must be entered into the payroll system by December 26, 2014 for the January 2, 2015 payroll including the HCSAF fee
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Final Reconciliation Before January 1
Final enrollment roster will be sent by ASIFlex to Payroll Coordinators on December 17, 2014.
If there is an employee on the enrollment report that you don’t have an enrollment form or the online enrollment confirmation for, contact that employee to obtain one on file and update the payroll for 2015.
If you have an enrollment form for someone that is not on the enrollment report, notify ASIFlex ASAP.
You will receive report of employees who didn’t re-enroll for 2015 – confirm FSA deductions stopped
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