New Information on your FSA
FSA Mid-Year Special Enrollment Period
A special enrollment period opens on April 19, 2021, to allow additions, changes, or decreases in Healthcare and Dependent Care Flexible Spending Accounts (FSAs). This allows employees to make changes because of provisions in the recently passed Consolidated Appropriations Act and the American Rescue Plan Act. The special enrollment period for these changes is April 19 to April 30, 2021.
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Some of the highlights of the changes that can be made to these plans are as follows:
- If you have enrolled in a healthcare Flexible Spending Account for the 2021 calendar year, and you have used all the healthcare Flexible Spending Account funds available to you, you are not able to decrease or opt out of your healthcare Flexible Spending Account for 2021. You can enroll or increase your healthcare Flexible Spending Account up to the maximum of $2,750.
- Enroll, increase, decrease, or opt out your healthcare Flexible Spending Account (enroll up to the maximum of $2,750)
- Enroll, increase, decrease, or opt out of your Dependent Care Flexible Spending Account (enroll up to the maximum of $10,500)
- File dependent daycare claims for dependents who may have turned 13 or 14 during the pandemic. You will be allowed to carry forward any balance from 2020 wherein your child reached the limiting age. For example, you enrolled in November 2019 for an FSA with a plan year beginning January 1, 2020, but your dependent turned 13 on July 13, 2020. You will be able to use any balance related to childcare expenses under the Dependent Care Flexible Spending Account and seek reimbursement through July 12, 2021.
- Extension periods have been extended for all FSA participants who had balances or who will have balances in their Flexible Spending Accounts on December 31, 2020, and December 31, 2021. Balances on December 31, 2020, have until December 31, 2021, to be used. Balances on December 31, 2021, have until December 31, 2022, to be used. If you terminated your FSA plan due to a life event, you may still file healthcare claims even if your FSA benefit was terminated during the 2020 or 2021 plan years.Payroll deductions based on changes you make will be spread over the May through December pay periods.
If you have any questions or require additional information, please call the Benefits Service Center at 1-877-780-4473 or email us at BenefitsOffice@houstonisd.org
FAQs
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Can you carry forward your FSA balance under this new Act?
Answer: Yes. If you have a balance as of December 31, 2020, you may carry forward to December 31, 2021. All funds for this year must be exhausted by this date. If you have a balance as of December 31, 2021, you may carry forward to December 31, 2022. All funds for this year must be exhausted by this date.
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What if I terminated from my FSA plan but I am still an active employee?
Answer: Any active employee who terminated the plan with a balance based on question 1 would be allowed to seek reimbursement from the FSA healthcare administrator (PayFlex).
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What if I had a child who aged out at 13 during the 2020 plan year under Dependent Care FSA?
Answer: Your child’s benefits will extend to age 14 and be available for one year from the child’s birthdate to use the benefits.
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Am I able to change my election amount for Healthcare and Dependent Care FSAs?
Answer: Yes, you can change your amount without a life event. There is a special enrollment period April 19-30, 2021, during which you can enroll, increase, decrease, or opt out of your Healthcare and Dependent Care Flexible Spending Accounts. You will receive email notification about this special enrollment opportunity.
Please read your email carefully and decide what you would like to do so you will be ready when the window is open. You will have one opportunity to enroll and one opportunity to opt-out, so make your selections wisely. Payroll deductions will be adjusted according to your choices.
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What is the effective date of the special enrollment changes?
Answer: All changes will be prospective, so the effective date is May 1, 2021. You will not be able to use your FSAs for expenses prior to this effective date unless you were already enrolled and have not used all of the initial funds.
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When is the FSA special enrollment period?
Answer: The Benefits Service Center will notify you, but the Healthcare and Dependent Care FSA special enrollment period is April 19–30, 2021.
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Am I able to change my Dependent Care FSA amount under this new act passed in March 2021?
Answer: Yes, you will be able to change your Dependent Care Flexible Spending Account election, as well as take advantage of the extended time in which to use any balance you may have in this account. You can elect up to $10,500 for this Flexible Spending Account for the 2021 plan year only.
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Am I able to change my Healthcare FSA amount under either of these acts?
Answer: Yes, you can change your Healthcare amount up to $2,750.00
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Who do I call if I have questions about the administration of the Consolidated Appropriations Act and the American Rescue Plan Act Flexible Spending Account provisions?
Answer: Call the Benefits Service Center at 1-877-780-4473 or email them at BenefitsOffice@houstonisd.org.
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Your FSA claim filing deadline is extended
You can submit eligible claims from the previous year
The Internal Revenue Service (IRS) recently implemented a mandate that allows employees more time to submit reimbursement account claims. This means, your deadline to submit claims for reimbursement has been extended if you:1. Were enrolled in either of the following accounts during the previous plan year:
a. Health Care or Dependent Care Flexible Spending Accounts (FSAs)
b. Health Reimbursement Arrangement (HRA)2. Have unused reimbursement account funds from the previous plan year.
3. Paid for an eligible out-of-pocket expense during the previous plan year that you haven’t submitted for reimbursement yet.How to submit claims If you meet the criteria above, here’s how to file a claim for reimbursement:
- Log into payflex.com, your PayFlex member website.
- If you’re enrolled in a PayFlex account for this current plan year, select the previous plan year to confirm your new claim filing deadline.
- You can also log into the PayFlex Mobile® app.
- If you have eligible claims to submit, select file a claim to get started.
- If needed, you can complete a paper claim form. Then, fax or mail it to us. Claim forms are found on your PayFlex member website.
Note: If you had a claim/s denied due to a submitting past your original claim filing deadline, we’ll automatically re-process those claims if we have all the information needed.
Eligible Expense Scanner
In addition, if you aren’t sure what’s considered an eligible expense simply click here to review the list on payflex.com. You can also check out the new Eligible Expense Scanner on the PayFlex Mobile app.
Questions?
Log into your PayFlex member website. Click Help & Support to email or chat with us. We’re here to help Monday – Friday, 7 a.m. – 7 p.m. CT, and Saturday, 9 a.m. – 2 p.m. CT.
