Please send your comments on this program to fsa@opm.gov.

FSAFEDS - Limited Flexible Spending Account (LEX HCFSA) Option for 2006
BAL 05-801 provides an explanation of the new limited expense health care spending account (LEX HCFSA). It's designed for those enrolled in high deductible health plans with health savings accounts. Eligible expenses are limited to dental and vision expenses only.

Annual Open Seasons
FSAFEDS holds an annual open season during November/December, at the same time as the FEHB Open Season. For more information about FSAFEDS, please visit www.fsafeds.com.

FSAFEDS Open Season for 2005 Plan Year
The Federal Flexible Spending Account Program (FSAFEDS) Open Season begins on Monday, November 8, 2004 and runs through Monday, December 13, 2004. Unlike FEHB enrollments, enrollments in FSAFEDS do not carry over from year to year. Employees wishing to enroll in FSAFEDS for 2005 must make a positive enrollment during Open Season, even if they are currently enrolled in the Program.

BAL 04-803 provides important information to agency benefits officers about the upcoming open season, including how to order materials and request additional information from FSAFEDS.

FSAFEDS Billing Process
We've received some questions from agencies about paying FSAFEDS administrative fees on behalf of their enrolled employees. Therefore, we just issued BAL 04-802 which explains that process in more detail.

BAL 04-801 discusses changes in FSAFEDS Program for the 2004 Plan Year
Based on feedback from the Chief Human Capital Officer (CHCO) community, Director Kay Coles James decided to increase the amount that employees could elect for a health care flexible spending account (HCFSA) from $3,000 to $4,000. In addition, agency CHCOs agreed that an increase in fees is warranted, since coverage for over-the-counter (OTC) medicines and products began January 1, 2004. For the 2004 Plan Year, the fee for a HCFSA will be $7.50 per participant per month. The Dependent Care Flexible Spending Account fee remains the same, at one and a half percent (1.5%) of the elected amount. The National Defense Authorization Act for Fiscal Year 2004, Public Law 108-136, signed on November 24, 2003, requires all Executive Branch agencies, as well as other employing entities of the Government which provide the FSAFEDS program to its employees, to cover the administrative fee(s) on behalf of their employees.