No, there are no administrative fees for either flexible spending account. The amount of pre-tax money you choose to contribute from your paycheck goes directly into your FSA account.
The IRS requires re-enrollment for participation every year. If you don’t re-enroll each fall, you can’t participate the following year.
You must submit a claim form, or use your FSA debit card, if you have one. The claim form provides information about required documentation and claims payment. For information on claim forms for 2017 and 2018, go here. The rules about when you can receive reimbursement vary by account.
IRS rules don’t allow transfers between flexible spending accounts. The Internal Revenue Code regulations specifically state that any amount set aside on a pre-tax basis to a specific type of flexible spending account can’t be used for any other type of expense.
The Internal Revenue Code states that, once a participant enrolls for a specific pre-tax contribution amount, the participant can’t change the amount unless he or she has a qualified family status change. More information about family status changes is available here.
Unfortunately, you lose any money left in your account. That’s why it’s important to always plan your spending account contributions carefully. You also can’t carry over contributions from one year to the next or transfer contributions from one flexible spending account to another.
You can use your account to reimburse expenses for over-the-counter (OTC) medical supplies and products including bandages and wraps, braces and supports, catheters, contact lens solutions and supplies, contraceptives and family planning items, denture adhesives and diabetic supplies. OTC drugs, such as antacids and cold, pain and allergy medications aren’t eligible unless you have a prescription from your doctor. You’re not reimbursed for products that promote general health, such as vitamins, nutritional supplements, toothpaste and moisturizing lotion, even if your doctor suggests them.
As with all reimbursement requests, you must submit a claim form and any additional required documentation. For OTC items you need to include a cash register receipt showing the date, amount of the purchase and the product description. Only OTC medicines require a doctor's prescription.
If you have an FSA debit card, you can use that for OTC medications at CVS, Walmart, Sam’s Club, Walgreens and drugstore.com.
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.
You can also use the FSA debit card for prescription drug, dental and vision expenses.
We advise you to be cautious when paying for medical provider up-front costs, such as deductibles and/or coinsurance. Ask the medical provider to file the claim with Cigna (depending on when you incur the charge) before you use your debit card to make sure you’re paying the correct out-of-pocket amount and to make sure your claim includes any contract discounts.
Yes. However, because your doctor’s office may charge more than is allowed under the vendor's agreement, the charges you pay at your doctor’s office with an FSA debit card may be incorrect. Here’s how doctor office visits should be handled: