There are two types of Flexible Spending Accounts (FSA’s) available: Healthcare FSA (medical, dental, vision, pharmacy, and other related expenses) and Dependent Care (primarily dependent day care expenses). Medcom is the administrator for the FSA plans. An FSA allows you to pay for out-of-pocket costs with pre-tax dollars, saving you money. Because you do not receive the amount of your FSA contributions in your paycheck, you do not pay income tax on this money. Plus, the reimbursements are tax-free.
FSA plan participants pay a $3.50 monthly post-tax administrative fee via payroll deduction. Only one fee applies if you are enrolled in both the Dependent Care and the Healthcare FSA.
You can contribute up to $2,750 during 2022 into a Healthcare FSA. Eligible Healthcare FSA expenses include deductibles, copays, coinsurance, prescription drugs, over-the-counter drugs (no prescription required), dental, and vision expenses.
The Dependent Care FSA enables you to pay for certain dependent care expenses using before-tax dollars. You may contribute up to $5,000 in a Dependent Care FSA for 2022. Eligible dependent care expenses include day care / after-school / program fees for children up to age 13 and certain adult day care expenses
Debit Card Purchases
Participants in the FSAs receive a debit card so that many expenses can be paid at the time of service, eliminating the reimbursement process. The funds are debited from the account and paid to the doctor’s office, pharmacy, or day care facility directly at the time of purchase. When the debit card is not accepted, you are required to pay for the expense and submit a claim for reimbursement.
Please remember to keep all FSA claim receipts, even if you use your debit card. Some debit card claims will require you to provide a receipt to the plan administrator. In the event the FSA administrator needs additional information from you, you will receive a communication requesting receipt(s).
Not all vendors accept the debit card. Should you need to pay for an eligible expense and be reimbursed from your FSA, you will need to submit a claim to the address indicated on the claim form with appropriate documentation.
Claims must be incurred by December 31, 2022 to be eligible for reimbursement for the 2022 plan year. The IRS requires that any unused money in your account at the end of the plan year is retained by your employer and forfeited by the employee. However, the IRS allows Healthcare FSA plan members to roll over up to $550 of unused funds for future use. The $550 roll over option does not apply to the Dependent Care FSA.
IRS regulations require appropriate documentation to ensure your claims are valid expenses. You will be asked to provide receipts as documentation for most expenses. Retain receipts and provide them promptly upon request.
Once you are enrolled, you may access https://medcom.wealthcareportal.com and register as a member. You may access your balance and claims information, and view other important FSA plan information on this website.
Medcom also offers a free mobile app for FSA participants to access your accounts from anywhere at any time. You will enjoy convenient mobile options to check balances, view transaction details, request a reimbursement, and submit documentation on the go.