Flexible Spending Accounts (FSA)


Overview

An FSA allows an employee to set aside a portion of earnings on a pre-tax basis to pay for qualified expenses (medical, dental, vision, and day care) incurred during the plan year. The IRS sets pre-tax contribution limits for FSAs and enforces rules related to plan administration, enrollment, and status changes.

The State's FSA program is administered by Navia Benefit Solutions.

Key Things to Remember

  • You save money on taxes by setting aside pre-tax income for eligible expenses.
  • FSA funds are subject to the "use it or lose it" rule—any unused health FSA funds over $500 by the end of the plan year will be forfeited; no carry over is allowed for dependent care FSA funds.
  • FSA must be re-elected every year during the annual open enrollment period
  • An FSA is not the same as an HSA (Health Savings Account):
  • FSA HSA
    Contribution period Payroll contribution must be re-elected every year during open enrollment Payroll contribution may be adjusted any time during the year
    Investment option Funds may not be invested (they are simply kept on an FSA debit card) Funds may be invested and are tax-free when withdrawn to pay for qualified medical expenses
    Funds expiration General/Limited Purpose Health FSA
    Up to $500 of unused funds may be carried over to the following plan year. Any unused funds over $500 by the end of the plan year will be forfeited

    Dependent day care FSA
    No carry-over feature; any unused funds by the end of the plan year will be forfeited
    No expiration

    If you leave state service, change health plans or retire, your HSA money stays with you

    If you switch to a health plan that makes you ineligible to continue contributing to your HSA, you may continue to use the money in your account for qualified medical expenses (however, you can no longer make additional contributions)
    Enrollment eligibility Any State employee can enroll Must be enrolled in a high-deductible health plan (Choice Plus Plan with HSA)

FSA Details

The State offers three kinds of FSAs to eligible employees:

  1. General purpose health care FSA
    Standard health FSA intended for employee not covered under an HSA-qualified medical plan; covers all qualified medical expenses
  2. Limited purpose health care FSA
    Alternative health FSA intended only for employee covered under an HSA-qualified medical plan; only covers qualified preventive care, dental and vision expenses
  3. Dependent day care FSA
    Covers qualified dependent care expenses

FSA type Who should enroll Qualifying expenses Contribution limit (2018 plan year)
General purpose health care FSA Eligible individuals that are not covered under an HSA-qualified medical plan* General medical expenses $2,650
Limited purpose health care FSA Eligible individuals and/or their spouse that are covered under an HSA-qualified medical plan* Preventive medical care, dental and vision expenses $2,650
Dependent day care FSA Eligible individuals that have:
  • Dependents 12 and under, or
  • Dependents physically/mentally incapable of caring for themselves
Preschool, day camps, day care, before/after school care
  • Individuals and married couples filing jointly: $5,000
  • Married couples filing separately: $2,500

* For example, Choice Plus Plan with HSA

See the FSA FAQ for more information.

Any State employee that satisfies all of the following criteria is eligible to enroll:

2018 Plan Year
Navia Account Registration

Please use the following steps if you need to register for an account with Navia:

  1. Go to www.naviabenefits.com
  2. Click "register" in the top right hand corner of the homepage and click "I'm a Participant" to proceed to the registration form
  3. You will need the following information to create an account:
    • Company Code: RHI
    • First initial and last name
    • Date of Birth
    • Email Address
Qualified FSA Expenses
Letter of Medical Necessity

Certain medical expenses—e.g., dietary supplements, cosmetic procedures, and weight loss programs—are not reimbursable under a Health Care FSA unless a licensed health care professional states that the service or product is medically necessary.

To claim reimbursement for such expenses, please have your licensed health care professional complete the Letter of Medical Necessity and submit it to Navia as indicated on the letter.

FSA funds can be accessed through:

Both Healthcare FSA plans allow up to $500 of usued dollars to be carried over to the following plan year. Dependent day care FSA has no carry-over feature.

Please contact Navia if you have questions regarding your FSA:

  • Visit www.naviabenefits.com
  • Email
  • Call (800) 669-3539