HCFSA - Health Care Flexible Savings Account Fact Sheet

Last updated: 12/28/2018

The Health Care Flexible Spending Account is a tax-free account that allows you to pay for essential health care expenses such as deductibles, copays, coinsurance and prescription drugs that are not fully covered by your medical, dental and vision insurance plans.  See eligible expenses from our plan administrator, ASIFlex.

HCFSA Basics

  • Our HCFSA is administered by ASIFlex.
  • This account is regulated by the Internal Revenue Service (IRS), who determines contribution limits, qualifying expenses and has designated it as a “use it or lose it” account. 
  • Enrollment in a medical, dental and/or vision plan is not required for you and/or your federal tax dependents to participate in the HCFSA.
  • Your FSA becomes effective on your benefits eligibility date if you are a new hire or July 1, if enrolled during Open Enrollment.
  • HCFSA enrollment elections do not rollover year after year.  You must re-enroll every year, during Open Enrollment, in order to continue your account for a new plan year.

HCFSA Contributions

  • Your pre-tax contributions can be a minimum of $10 per month up to $2,700 per Plan Year (July 1 to June 30) per employee. The money is deducted from your paycheck pre-tax.
  • The amount you elect will be divided by the number of remaining pay periods in the plan year.  Your final contribution will be June 30. 
  • Your election is fixed for the Plan Year however, changes are permitted if you experience a Qualifying Life Event. 
  • For tax purposes, you are responsible ensuring that your total calendar-year contributions do not exceed $2,700.  For example, if you are hired by CU in the middle of our Plan Year and have contributed to a HCFSA with your prior employer, you must keep track of the total contribution amount.

Spending HCFSA Funds

  • Funds in the account must be utilized on qualifying healthcare expenses, or you will pay both taxes and penalties.
  • Expenses qualify for the HCFSA when they are incurred, not when they are paid.
  • ASIFlex, our FSA Administrator, will mail you a Debit Card that you must activate.  The Debit Card will be pre-loaded with the FULL amount you elect at your enrollment. When you need to pay for an eligible expense, present your ASIFlex debit card at the time of purchase. This will then pay for the health care service/product straight from your HCFSA account. The use of the card is not paperless, and supporting documentation may be required to substantiate a transaction.
  • If you don’t have your ASIFlex Debit Card with you at the time of purchase/services, you can file a claim online at www.asiflex.com or you can download the free mobile app for Android and Apple devices.

Use it or Lose it Accounts

Failure to incur the expense and claim the reimbursement by the deadline will result in the forfeiting of your funds.

  • You must incur expenses from July 1, 2018 to Sept. 15, 2019.
  • You must file claims for reimbursement by Nov. 15, 2019.

Effect on Social Security

Cafeteria plan dollars are deducted from your pay pretax, meaning before federal, state, Social Security and Medicare taxes are paid. Participating in cafeteria plans reduces the salary on which annual contributions to Social Security are calculated, which may result in a reduction of the Social Security benefits received at retirement.

Effect on PERA

Cafeteria plan dollars are deducted from your pay pretax, meaning before federal, state, and Medicare taxes are paid.  Your PERA retirement annuity or disability retirement is based on your PERA Highest Average Salary (HAS) calculation. Since cafeteria plans reduce the salary on which PERA calculates benefits, your PERA retirement benefits may be reduced.

Review the FSA plan document.