Benefits Administration Letter
Number:
|
04-803
|
Date: October 8, 2004
|
Subject:
|
FSAFEDS - Open Season for the 2005 Plan Year for the Federal Flexible
Spending Account Program
|
|
GENERAL INFORMATION
Background
The Federal Flexible Spending Account Program (FSAFEDS) Open Season begins
on Monday, November 8, 2004 and runs through Monday, December 13, 2004. These
are the same dates as the Federal Employees Health Benefits (FEHB) Program Open
Season. This will be the only time Federal employees who work for the Executive
Branch or adopting agencies may enroll in the FSAFEDS Program for 2005, outside
of a qualified status change.
Unlike FEHB enrollments, enrollments in FSAFEDS do not carry over from year
to year. Employees wishing to enroll in FSAFEDS for 2005 must make a positive
enrollment during Open Season, even if they are currently enrolled in the Program.
PROGRAM INFORMATION
Types of FSAFEDS Accounts
FSAFEDS offers two types of flexible spending accounts: a health care flexible
spending account (HCFSA) and a dependent care flexible spending account (DCFSA).
Employees may enroll in neither, one or both types of accounts.
An HCFSA pays for qualified medical expenses for the employee (and all eligible
family members) that are not covered or reimbursed by an FEHB plan or any other
type of insurance. Insurance premiums, including premiums for long term care
insurance, are not qualified medical expenses. Employees may elect a minimum
annual amount for an HCFSA of $250 up to a maximum annual amount of $4,000.
A DCFSA pays for childcare or adult dependent care expenses that are necessary
to allow the enrolled employee and his/her spouse (if married) to work, look
for work, or attend school full-time. The DCFSA minimum annual amount is $250
and the maximum annual amount is $5,000.
Both accounts allow employees to pay for qualified expenses with pre-tax dollars
-- money that is deducted from the employee's paycheck before taxes are taken
out.
Use-It-Or-Lose-It and Non-Cancellation
Employees lose any money in their accounts for which they did not submit a
claim by April 30 following the end of the Plan Year, for eligible expenses
incurred during the Plan Year. This is known as the "use-it-or-lose-it"
rule.
Enrollments in FSAFEDS cannot be cancelled or changed after their effective
date, unless the employee experiences a qualified status change (QSC). The FSAFEDS
website at www.FSAFEDS.com has more information
on QSCs.
ENROLLMENT INFORMATION
Who Can Enroll
Active Federal employees of Executive Branch agencies and other Federal employers
who have agreed to offer FSAFEDS to employees are eligible to participate for
one or both accounts. Eligible participants for the HCFSA are those Federal
employees eligible to enroll in the FEHB program (whether or not they are actually
enrolled). All Federal employees of agencies noted above may participate in
the DCFSA except intermittent employees whose appointment is six months or less.
How to Enroll
Eligible employees who wish to enroll during this Open Season for the 2005
Plan Year may do so in one of two ways:
-
Through the website at www.FSAFEDS.com
by clicking on the "Enroll" link; or
-
By contacting an FSAFEDS benefits counselor Monday through Friday from
9:00 a.m. to 9:00 p.m. Eastern time at 1-877-FSAFEDS (372-3337), TTY 1-800-952-0450.
FSAFEDS enrollments are received and processed by the Program's third-party
administrator, SHPS, Inc.
When to Enroll
Enrollments will be accepted on the web and by phone starting on November 8,
2004, through December 13, 2004. Please also see the sections on pre-open season
enrollments and belated enrollments.
Effective Date of Open Season Enrollments
Timely Open Season enrollments are effective on January 1, 2005, for the Plan
Year that runs from January 1 through December 31, 2005.
Pre-Open Season Enrollments
Employees who know that they will be unable to enroll during Open Season, due
to extenuating circumstances beyond their control, may submit their enrollment
before Open Season by completing a Pre-Open Season enrollment form which can
be downloaded from the "Forms" section of the FSAFEDS website at www.FSAFEDS.com.
The form will not be available once Open Season begins. The form requires employees
to verify the extenuating circumstance(s) preventing timely enrollment and authorize
FSAFEDS to enroll them on their behalf. Early enrollments have the same effective
date as timely enrollments.
Belated Enrollments
Employees who wish to make a belated enrollment after Open Season due to extenuating
circumstances that prevented them from making a timely enrollment during Open
Season must complete a Belated/Absentee enrollment form. The form can be downloaded
from the "Forms" section of the FSAFEDS website at www.FSAFEDS.com.
Regardless of circumstances, no enrollments or qualified status changes (QSCs)
are permitted after October 1 of any Plan Year.
Belated enrollments are NOT effective at the same time as timely enrollments.
Belated enrollments are effective the day after FSAFEDS receives the employee's
Belated/Absentee enrollment form.
MISCELLANEOUS INFORMATION
FSAs and HSAs/HRAs/HDHPs
This year we have introduced a new option under the FEHB Program -- High Deductible
Health Plans (HDHP) with either a Health Savings Account (HSA) or Health Reimbursement
Account (HRA). Employees who enroll in an HDHP with an HSA cannot participate
in an HCFSA under FSAFEDS, but may still participate in a DCFSA if they are
otherwise eligible for such account. More information on these new options is
available at www.opm.gov/hsa. If your agency
has its own flexible spending account program, you will need to advise your
employees on how this new FEHB option works with your cafeteria plan.
Additional Information on FSAFEDS
In addition to the enrollment feature, the FSAFEDS website at www.FSAFEDS.com
contains a wealth of information regarding the FSAFEDS program. Site features
include an overview of FSAs; a calculator to help estimate how much to put into
either an HCFSA or DCFSA; Frequently Asked Questions (FAQs); a "juke box"
listing eligible expenses including over-the-counter medicines and products;
information on paperless reimbursement; and much more.
Please encourage your employees to visit the FSAFEDS website, or to contact
a benefits counselor by phone (1-877-372-3337, TTY 1-800-952-0450) to become
more familiar with the FSAFEDS program before or during the upcoming FSAFEDS
Open Season. Additionally, they may email any questions about FSAFEDS to FSAFEDS@shps.net.
FSAFEDS Educational Materials
You may order the following materials for the upcoming FSAFEDS Open Season:
-
Program overview brochures which describe FSAFEDS and include details on
eligible expenses (minimum order of 100 brochures)
-
Promotional posters, 10" x 13" (there are three versions in each
"set". The minimum order is 5 sets, for 15 total posters)
-
Program overview videos in VHS closed-captioned format
Materials are free of charge to you. Brochures and posters will be ready to
ship by October 15 and videos will be ready to ship by October 26.
Send your request to FSAFEDS-HR@shps.net
and be sure to include how many of each you need, the mailing address(s) where
materials should be shipped, and a name, phone number and email address of a
point of contact. FSAFEDS will begin processing your requests in the order received,
starting on October 15. Processing is usually complete within 48 hours. Once
your order is processed, FSASFEDS will send an email to the email address given
in the order, confirming that the order was placed, along with a phone number
to call if you do not receive your order within seven business days from the
date of the confirmation email. Orders will be shipped using an express ground
delivery carrier with a five-day guaranteed delivery date, unless you specifically
request shipment via the U.S. Postal Service. Orders may be split into two shipments,
since the posters and brochures will be ready to ship sooner than the videos.
Please order your materials as soon as possible!
FSAFEDS Presentations
You may also request a speaker for your agency benefits fairs by sending an
email to FSAFEDS-HR@shps.net.
A calendar of already-scheduled fairs, updated weekly, is available on the Benefits
Officers page at www.FSAFEDS.com. FSAFEDS
will accommodate requests for speakers on a first-come first-served basis, with
priority given to fairs with projected attendance of over 300 employees.
FSAFEDS Agency Contact List
Additionally, if you are not now receiving "blast" emails from FSAFEDS
regarding the program, please send an email to FSAFEDS-HR@shps.net
and request that your name and contact information be added to the FSAFEDS agency
contact list.
As always, we appreciate your support of FSAFEDS and look forward to another
successful FSAFEDS Open Season.
|
Frank D. Titus
Assistant Director for Insurance Services Programs
|
PDF version of this BAL
