Frequently Asked Questions
A healthcare flexible spending account (FSA) allows you to pay for qualified out-of-pocket medical expenses on a pre-tax basis. Money deducted from an employee's pay into an FSA is not subject to payroll taxes, resulting in substantial payroll tax savings.
Click here for a standard list of eligible items and services.
Ineligible expenses include the following:
Once you make your annual election during open enrollment, your employer will fully fund your account at the beginning of the plan year with your total election amount. Your employer will then deduct the election amount from your paychecks in equal amounts throughout the year.
It depends on how your FSA plan has been defined. Please log in to your account to determine if you can carry over up to $500 of unused FSA dollars or have a grace period in which to spend your remaining FSA dollars.
Click here for tips that will help you consider all your potential expenses when deciding how much to contribute to your FSA. The "use-it-or-lose-it" rule is a provision in the IRS Regulations. Under this provision, all money contributed to a FSA must be used to reimburse qualified expenses incurred during that plan year. Money not used to reimburse eligible expenses is forfeited. The unused portion of your healthcare FSA may not be paid to you in cash or other benefits, including transferring money between FSAs. To reduce the risk of forfeiture, it is critical for you to be conservative when choosing your annual election amount.
Our online savings calculator can help you estimate your annual expenses.
Your election is irrevocable for the plan year unless you have a change in status or other qualified event as defined in the IRS Regulations and your plan permits such qualified changes.
You will be reimbursed for any eligible expense incurred before the date you retire or leave the company. Under IRS regulations, any remaining funds in the account must be forfeited. Any expenses you incur after the end of your employment is not eligible for reimbursement.
WageWorks takes its duty to protect your privacy seriously, and as a result we have a strict policy in place to safeguard your account and private information. While you can grant your spouse and dependents and those eligible to use your account limited access, you as the accountholder are the only one with full access and rights to your account and account settings. Please see the "Authorized / Unauthorized Caller Allowable Information Chart" for more information.
An FSA account can only be used to pay expenses of a qualifying child or qualifying relative (as such terms are defined in Internal Revenue Code Section 152).
At this time, a domestic partner is not considered a spouse under federal law, so a domestic partner's medical expenses cannot be reimbursed under a health FSA unless the domestic partner is a "qualifying relative" of the participant. A qualifying spouse must be legally married.
The IRS has changed mileage reimbursement rates for medical care effective based on the date the service is incurred. Mileage for travel to / from eligible health care – on or after January 1, 2016 $.19 per documented mile.
Please include the following information with your mileage claim:
Yes. However, because of the 2011 Health Care Reform Law, you will need to submit a doctor's statement with your reimbursement request verifying that the patient's diagnosis is obesity and that the OTC was prescribed to treat obesity.
Keep in mind, an FSA will not pay for the cost of food supported by a weight-loss program that substitutes normal nutritional needs.
The IRS requires that medical expenses reimbursed through an FSA must be primarily for the diagnosis, treatment or prevention of disease.
For example, your doctor may prescribe a vitamin to treat your medical condition. Because vitamins are generally considered an ineligible expense, you will need a letter from your medical provider detailing the type of service rendered and the treatment necessary.
The grace period allows you additional time to spend the dollars that are in your FSA. Your employer must elect grace period in order for you to participate. To find out if your employer offers the grace period log in to your account.
Employers that offer a grace period for an FSA plan can also offer the grace period on the Card.
The Card grace period feature will pay Card transactions made during the grace period from the participant's previous plan year balance, until those funds are exhausted, before making payments from the current new plan year account. Grace period on the Card is only available to participants that have an FSA enrollment for the new plan year.
You can submit a reimbursement request at any time during the same plan year when the expense was incurred. You can also log in to your account at any time to see how long you have to spend or claim your funds.
Five pieces of information are required to help ensure the approval of your claim. They are:
Please ensure that your documentation contains all the above information when submitting a claim.
Review the Claim and Card Use Verification Checklist.
You may download claim forms online from here.
Some doctors’ offices, hospitals, and dentists perform services which would be considered ineligible for certain accounts.
Because the IRS requires us to obtain 100% verification of Healthcare Card transactions, we ask for itemized receipts for all transactions which we are not able to automatically approve. This is called Card Use Verification.