The Lexington School HSA and FSA Frequently Asked Questions

FAQs: HSAs

What expenses are covered?

Out-of-pocket expenses for medical, dental, vision, pharmacy, and over-the-counter medical items. For a complete listing of covered items, please visit your HSA medical plan administrator’s website.

Who is eligible to contribute to a Health Savings
Account?

You are eligible if you have enrolled in an HSA- eligible medical plan and you do not have PPO coverage in addition to your HSA Medical Plan.
You are NOT eligible for a Health Savings Account if you (or your spouse) contribute to a General-Purpose Flexible Spending Account (FSA) and
You are NOT eligible for a Health Savings Account if you are enrolled in a government-sponsored medical plan such as Medicare, Medicaid, or Tricare.

Who can I use the funds for?

You can pay for qualified expenses for yourself, your spouse, and dependent children, even if they are not covered on your insurance plans.
If your Domestic Partner meets the IRS qualifications to be considered a taxable dependent, you can use your HSA funds for his/her qualified expenses.

Can I change my contributions throughout the year?

Yes. You are not required to encounter a Qualifying Event to adjust your HSA contribution amount. Contact HR for more details and/or limitations on when changes to HSA contributions deducted through payroll should be reported.

What if I move to a PPO medical plan next year?

Once funds are deposited into the HSA, the account can be used to pay for qualified expenses tax-free, even if you are no longer covered by an HSA- eligible medical plan. Please note, additional funds cannot be contributed into the account if you are not enrolled in an HSA-eligible medical plan.

What if I incur more expenses than I have funds
available in my account?

If you do not have sufficient HSA funds to pay for an eligible expense, you will need to issue payment by some other means. However, as funds accumulate in your HSA, you can reimburse yourself for those expenses provided the account was open on or before the date the expense was incurred. You will be required to provide the receipt(s) showing proof of payment.

What expenses are covered under a Healthcare FSA?

Out-of-pocket expenses for medical, dental, vision, pharmacy and some over-the-counter items are covered. For a complete listing go to the McGregor link at the bottom of the page.

Who is eligible to contribute to the Healthcare Flex Spending Account:

You are eligible to contribute to a Healthcare Flex Spending Account as long as neither you, nor your spouse, contribute money into a Health Savings Account.

What is a Limited Flexible Spending Account?

A limited Flex Spending Account is money set aside (tax-free) for use in paying for dental and vision expense only and is allowed, under IRS guidelines, to be used in conjunction with a Health Savings Account.

Who can I use Healthcare FSA money for:

You can pay for qualified expenses for yourself, your spouse and tax dependent children, even if they are not covered on your insurance plans.
If your Domestic Partner meets the IRS qualifications to be considered a taxable dependent, you can use your HSA funds for his/her qualified expenses.

Can I change my contribution to a Flex Account throughout the year?

No. You are only eligible to make adjustments to your Flexible Spending Accounts if you have a Change in Family Status (or a Qualifying Event) throughout the year. A Change in Family Status (or Qualifying Event) would be marriage, birth or adoption of a child, death of a dependent, divorce or legal separation or loss of benefit coverage elsewhere. Should you experience a Qualifying Event, you have 30 days from the date of the event to make a change in both benefits and/or your Flex Accounts.

What if I don’t spend all of the money in my Flexible Spending Accounts?

The family of Flexible Spending Accounts (Healthcare, Dependent Care and Limited Flex Spending) are all ‘use it or lose it’ accounts. Funds in the account must be used within the specified timeframe or at risk of being lost. Some accounts have a grace period which allows additional time to spend the funds. If you find you have additional funds at risk of being lost, you can purchase healthcare items. A good resource is www.fsastore.com.

Does my employer provide my elected Flexible Spending Account money up front?

Your employer will fund the Healthcare Flexible Spending Account funds and the Limited Flexible Spending Account funds up front; however, they do not fund the Dependent Care funds up front. You can only use Dependent Care funds as they are accrued.

Who is a qualified dependent under the Dependent Care FSA?

A qualified dependent must be under the age of 13 or a disabled spouse or adult child for whom the account holder is providing more than half of that individual’s support for the year and the dependent lives with the account holder.

Do I have to use a day care facility?

You can be reimbursed for expenses of an individual providing care for your dependent in your home as long as the expenses are incurred for you and your spouse (if married) to work, look for work or attend school, full-time.

For additional information regarding Health Savings Accounts, Limited Health Savings Accounts and Flexible Spending Accounts: www.mcgregoreba.com