Flexible Spending Accounts

Introduction

Flexible Spending Accounts, commonly referred to as "FSAs" are proven to save you money on your health care and dependent care expenses. By setting money aside on a pre-taxed basis for your qualified experses, you will save tax dollars.

As your administrator, EBS-RMSCO is dedicated to providing you with the best possible tools to effectively manage your accounts and maximize your savings.

What are FSAs?

A FSA is a voluntary, employee benefit plan sponsored by your employer that allows you to pay for certian qualified expenses on a pre-tax basis.

Here are the two types:

• Health Care Accounts
• Dependent Care Accounts

Health Care Accounts: Qualified Expenses

Health Care Accounts are used to pay for expenses not covered by: medical, vision, and dental plans, such as:

• Dental
• Optical Care
• Prescription Drugs
• Certain Over-The-Counter (OTC) Drugs
• Health Plan Deductibles
• Co-Pays
• Co-Insurance

Dependent Care Accounts

Dependent Care Accounts are for expenses for the care of your dependent children under the age of 13 that allow you to work or attend school full-time.

The most common dependent expenses are:

• Child Care Centers
• Babysitters

Qualified expenses also include care for a physically or mentally disabled dependent adult that is not capable of caring for himself such as an elderly parent that attends adult day care.

How do FSAs work?

You must decide how much money to contribute into your FSA each year.

To help you with this process, you can click here to see an FSA worksheet.

Once you determine how much you want to put into your account, your gross pay is reduced by that amount before taxes. Your FSA deductions are taken out of your paycheck in equal payroll deductions during the year and are maintained by your FSA administrator.

EBS-RMSCO Flex Card

The quickest and easiest way is to use your EBS-RMSCO Flex Card to pay the provider directly for your qualified FSA expenses. Both your Health Care Account and Dependent Care Account are maintained on the same card. Since your card works at all providers that accept Visa©, it should be accepted almost everywhere.

With no out-of-pocket expenses, your EBS-RMSCO Flex Card is the best way to pay for your qualified expenses.

Manual Submissions & Claims Forms

If you don't have an EBS-RMSCO Flex Card or if your provider doesn't accept the EBS-RMSCO Flex Card, simply save the receipts and submit them with the appropriate claim form directly to EBS-RMSCO.

Claim forms are available from your employer or our website.

The claims can be mailed, faxed or submitted on-line to us. Once received, they will be processed and a check will be mailed to you.

Why use a FSA?

The most important reason to use a Flexible Spending Account is to save money! Because your contributions are taken out before taxes, you don't pay federal, state, Social Security and Medicare (FICA) taxes. The savings usually range from 15% to 40% of your contributions, depending on your income level.

To estimate your savings, use our FSA Savings Estimation Calculator by clicking here.

A Flexible Spending Account also allows you a convenient way to budget and pay for unreimbursed health care and dependent care expenses.

EBS-RMSCO Flex Card: Important Points

A few things to remember if using the EBS-RMSCO Flex Card:

• The EBS-RMSCO Flex Card is a convenient and easy way to pay for your FSA expenses.
• No double out-of-pocket
• No waiting for a check to be mailed
• Minimal paperwork
• Works wherever Visa© is accepted
• Use the EBS-RMSCO Flex Card only for qualified expenses
• Certain claims will be audited, so please save your receipts
• You can always submit claims to us for manual payment

EBS-RMSCO Website Access

EBS-RMSCO's FSA Website Access will allow you to:

• Make inquiries to look at account balances
• Check claim submissions and claim status
• Get forms and information
• Submit claims
• Make inquiries regarding your accounts
• Download generic FSA forms including Claim and Direct Deposit Authorization Forms
• Download FSA informational Brochures

Important points to consider

A few very important things to consider when enrolling or using your Flexible Spending Account:

• You should carefully estimate your expected eligible health care expenses during the plan year to determine the total amount of your pay you will contribute to your FSA.
• For dependent care, be sure to factor in holidays, vacations and other time during the plan year when dependent care will not be required to determine the amount of your annual contribution to your FSA.
• Expenses reimbursed from your FSA during the plan year must be for dates of service/dates of purchase during that plan year and after you have become a participant in the plan.
• You may not change the amount of your pay period contribution to your FSA during the plan year unless you experience a "change in family status" as defined by IRS regulations.
• Year end purchases of OTC drugs will be limited to reasonable amounts.
• You will typically have a 120 day run-out period after the end of the year to submit manual claims for that year.
• Any remaining balance in your FSA at the end of the plan year for which you have no eligible expenses must be forfeited to the employer based upon IRS regulations.

Please see your employer’s benefits representative for specific information on your FSA.

To find our more about Flexible Spending Accounts, you can click here.