A. The maximum that can be deferred to the FSA for the 2021 calendar year is $2,750 for medical expenses and $5,000 for dependent care.
A. First, an accurate estimate of expenses assures maximum savings, so estimating too little does not take full advantage of the FSA. Second, the Federal "use it or lose it" rule requires that any amount over $550 remaining in the medical reimbursement account after December 31 be forfeited. There is a 2.5-month grace period for dependent care expenses..
A. Pre-tax contributions to the FSA do not affect the salary basis that the employer uses to calculate the contribution made to the Annuity Plan; they do not lower the contributions payable to the member's Annuity Plan account. The salary basis reported to the Pension Boards is the amount before FSA contributions are deducted. When filing taxes, the pre-tax FSA contributions should not be included in the gross salary reported on the W-2, which reduces the federal income tax and the FICA tax that are due.
A. Under the Affordable Care Act (ACA), the cost of over-the-counter medicines cannot be reimbursed from the FSA Plan unless the medicine is prescribed. Therefore, the Flexible Benefit Plan for UCC Ministries is not permitted to reimburse participants for expenses incurred for over-the-counter items purchased without a prescription.
A. Yes. However, the new employee must enroll and make a salary election before the medical or dependent care expenses can be covered by the FSA.
A. While this will cause a loss to the Plan there will be some employees who do not use all of their deferrals, thus helping balance the Plan.
A. Employers will be billed a $12 monthly administrative fee for FSA Plan employees who are not participants in the UCC Health Plan. There is no administrative fee for employees who participate in the UCC Health Plan.
A. No, only contributions to the employee's FSA can be deferred from pre-tax salary.
A. The last day to submit claims is March 31 of the following year.
A. You may use your Highmark debit card; submit claims by logging in to www.highmarkbcbs.com and clicking on the Spending tab; or file a paper claim form. Visit www.highmarkbcbs-fsa.com to learn more about the features of your FSA account.
A. It’s always a good idea to check the balance first to see how much money is in your FSA. You can split the balance between two payment methods. Tell the person at checkout how much to apply to the FSA debit card, then provide another form of payment for the remaining amount.
A. Not all receipts can be used. You can’t use credit or debit card receipts, canceled checks or medical statements. Here is what the IRC allows:
A. Contact Highmark BCBS Member Service at 1.866.763.9471 to report a lost card.
A. The PIN is available for added security and is only necessary if you select the debit option when using your card. The PIN is not needed if you select the credit option when making a qualifying purchase.
A. Login at www.highmarkbcbs.com and click Spending, then Debit Card or call 1.800.763.9471
A. You may be asked to provide a receipt to confirm your purchase was eligible. (See also Internal Revenue Requirements section for question about debit card receipts.)
A. Please keep your new card for future use.
A. Yes. Because of the special tax treatment of the FSA, the Internal Revenue Service has a series of rules that must be followed. We have arranged with an FSA administrative firm to assist in meeting these requirements and keeping the FSA operating within those rules.
A. The Internal Revenue Code (IRC) requires that you use your FSA only for eligible expenses. You may need to provide documents to prove that your medical claim is an eligible expense before you are paid back from your FSA. You can upload these receipts to your member website when you submit a claim, or when you get a request for documents.
A. The IRC requires that all transactions be verified. Usually, when you use your debit card to pay a medical expense, verification occurs automatically. But sometimes there’s not enough information available through the electronic transaction to prove that the expense is eligible under your plan. That’s when you receive a letter requesting additional information about your health expense purchase. You just need to respond by attaching a proper receipt or document to the claim. And it’s best to do it quickly, as you will receive a follow-up letter if you don’t respond. Your debit card may be deactivated until the information is received, as all FSA plans require that expenses are verified to make sure they comply with the IRC. (See also Debit Card Questions section.)