Health Care FSA
Important note regarding your FSA
Your 2020 FSA card will continue to work after Jan. 1, 2021. Claim forms can be found under 2020 forms on the Benefits website at www.HISDBenefits.org. The IRS has extended the deadline for employees to use pre-tax funds set aside through their 2020 flexible spending accounts to Dec. 31, 2021. The extension is possible because of federal legislation passed late last year due to COVID-19. You may contact Payflex at 888-678-8242 or visit Payflex.com for any FSA questions.
Money you set aside for health care expenses
- A healthcare FSA lets you set aside pre-tax dollars to pay for eligible health care expenses, even for dependents not covered under your HISD medical plan.
- It’s available to participants in all plans.
- You can contribute up to $2,750 per year through automatic payroll deductions over 24 pay periods.
- The full amount you set aside is available to you from the day your coverage begins. Since your contribution is pre-tax, it takes less out of your paycheck.
- Aetna/Payflex is the new provider for your FSA.
What your healthcare FSA covers
- Deductibles, coinsurance and copays under your medical, dental and vision plans
- Other eligible health costs that are not covered by your health care plan (for example, dental costs not covered by your dental plan)
- Prescription drugs
- Hearing aids
- Individual psychiatric and psychological counseling
- Lasik or other vision correction surgery
- Special medical equipment
- Special education devices
- Smoking-cessation programs or related prescription drugs
- Weight-loss programs for individuals diagnosed as obese
Over-the-counter medical supplies and products, such as:
- Bandages and wraps
- Braces and supports
- Contact lens solutions and supplies
- Contraceptives and family planning items
- Denture adhesives
- Insulin and diabetic supplies
What's not covered
- Cosmetic surgery
- Health plan premiums
- Weight reduction programs (unless prescribed by a physician for obesity)
- Over-the-counter smoking cessation medications, such as nicotine gum and patches
Rules and restrictions
In return for the favorable tax advantages, the IRS has strict rules on these accounts.
- You can’t change the amount you contribute until the next plan year, unless you have a qualified life event
- You can’t transfer money from this account to another FSA account
- To be reimbursed, you must be enrolled in the FSA when you incur expenses
- You need to keep all of your records to substantiate all claims
- You may use your FSA funds for expenses incurred through March 15 of the following year, and you have until May 15 of that year to submit documentation for those expenses
- You lose any funds that you don’t spend by March 15 of the following year
Determining your contribution
Only list expenses that are not paid through your medical, dental, vision, cancer and specified diseases, hospital indemnity, other district health care coverage selections or any other health plan. Using last year’s expenses can help. You can also use the Health Care FSA worksheet Estimate from the date your coverage begins if you’re hired or if you become eligible for benefits during the year.
Please Note: Effective January 1, 2017, HISD no longer offers the HealthFund. You may continue to use any funds you have left over from previous years to pay for eligible expenses as long as you are enrolled in an HISD medical plan. You use your HealthFund first to pay for all eligible health care costs, including services under your medical plan. After you have used all the money in your HealthFund, you may use your FSA debit card to cover medical expenses.
How it works
After enrollment, we begin automatically deducting your contribution from your pay. Your health care FSA can reimburse you up to your maximum planned contribution at any time during the year.
You can submit claims for reimbursement from your contributions online here, or by mail using this claim form.
If you need help with the claims process call contact Payflex at 888-678-8242 or visit Payflex.com.
For more information on tax-deductible expenses, visit the IRS online or call 800-TAX-FORM (800-829-3676). If you’re not sure whether an expense is eligible, check with your tax advisor.