Flexible Spending Accounts
New FSA Vendor for 2014
Starting January 1, 2014, Benefit Express, the company that managed this year’s Open Enrollment, will be Vanderbilt’s FSA and HRA vendor. The move to Benefit Express brings many positives:
- Less paperwork – in most cases, you won’t have to submit a receipt for eligible pharmacy expenses under $500
- User-friendly website – log in with your VUnetID and ePassword
- Customer service options – get answers to your questions by phone, email or live chat
- Flexible - See your claims history online or by text message; submit claims with cell phone pictures and email
PayFlex will process claims for your 2013 FSA.
- March 15, 2014 is the last day to incur a 2013 FSA claim.
- April 15, 2014 is the last day to submit a 2013 FSA claim. There are three ways to submit a claim:
- December 31, 2013 is the last day you can use your PayFlex MasterCard. After that date, destroy the card. If you recently received a new PayFlex MasterCard, destroy that card as well.
- You can continue to use the PayFlex website to view your 2013 or other historical FSA account information.
Benefit Express will process claims for your 2014 FSA.
- Starting January 1, you can submit a 2014 FSA claim with Benefit Express. There are three ways to submit a claim:
- Benefit Express will mail you a MasterCard in a plain white envelope with a Benefit Express return address. The card is valid for 3 years from its issue date. The card will have a starting balance equal to your 2014 Health Care FSA election.
Flexible Spending Accounts (FSAs) enable you to set aside some of your pay, on a pre-tax basis, into an account to pay for eligible health care or dependent care expenses. "Pre-tax" means you do not pay federal income or FICA taxes on the amount of money you put in the FSA. You save money by paying less tax. For reimbursement from your FSA account(s), you submit a claim form and required documentation to the spending account administrator, PayFlex Systems USA, Inc.
There are two types of Flexible Spending Accounts at Vanderbilt:
- Health FSA reimburses items such as eyeglasses, co-payments, prescriptions and over-the-counter drugs — any eligible health care expenses that are not covered by a benefit plan. The annual election minimums and maximums are $104 to $2,500 per employee. If both spouses work, both can claim $2,500 - for a total household limit of $5,000.
- Dependent Care FSA reimburses the cost of day care expenses for your children (under the age of 13) or other eligible dependents. The day care must be used as a means to allow you and/or your spouse to be gainfully employed. You can contribute up to a family maximum of $5,000 (for married couples filing jointly) or a minimum of $104 each calendar year to a Dependent Care FSA.
The money contributed to your FSA account must be used during the calendar year; it does not carry over from year to year. Money not used will be forfeited. Please plan your election amount carefully.
How to EnrollFor New Employees
If you want to enroll in an FSA, you must enroll within three months of your hire date. Then your FSA start date will be the first day of the month after three months of eligible employment. You can file and be reimbursed for claims for eligible services received on or after your FSA start date. Payroll deductions begin upon the first paycheck after eligibility. For example, if you were hired on July 10, your payroll deductions would start with your November paycheck. The amount you elect will be deducted evenly from each paycheck for that year, beginning with the first paycheck after three months of employment.
For Current Employees
To continue an FSA each calendar year, you must request FSA enrollment during the benefits Open Enrollment period each fall. The FSA start date will be January 1 of the next calendar year. You can file and be reimbursed for claims for eligible services received on or after your FSA start date. Payroll deductions begin upon the first paycheck after eligibility.
PayFlex (vendor for 2013 FSAs)
- PayFlex (HealthHub) website
- Tips for Using the Payflex HealthHub Website
- Quick Reference Guide
- Reimbursement Account Claim Filing
Benefit Express (vendor for 2014 FSAs)
- IRS 2 1/2 Month Extension for FSAs
- Notice for Highly Compensated Faculty and Staff with Dependent Care FSAs
- IRS Publication 502 "Medical and Dental Expenses"
- IRS Publication 503 "Child and Dependent Care Expenses"
- IRS Publication 969 "Health Savings Accounts and Other Tax-favored Plans" (refer to Publication 969's page 14 for our FSA and page 15 for our HRA)
For 2013 FSAs
For 2014 FSAs