Calendar of Events

• January 1,2008   -   Effective date for the 2008 plan year
• March 15, 2008   -   Last day to incur expenses and be reimbursed from previous year's balance
• May 31, 2008   -   All 2007 expenses must be submitted to FSAFEDS in order to be reimbursed

What is an FSA?

An FSA is a benefit being extended to the Executive Branch–an account set aside using pre-tax dollars to cover expenses that are not covered, yet are tax deductible. The FSAs are voluntary. The employee chooses to reduce pay for the next plan year by a selected amount through an allotment. The Department will put that amount into the employee’s FSA. An employee must make an election for the account and amount each year. Once an employee chooses to participate, the election is irrevocable unless the employee has a qualifying life event. SHPS, Inc. is the third party administrator for the FSA program.

Additional Information:

• FSAFEDS.com's question and answers section.

What is available?

Three accounts are offered: Health Care FSA, Limited Expense Health Care FSA, and Dependent Care FSA.

The Health Care FSA (HCFSA) allows employees to use pre-tax allotments to pay for certain health care expenses that are not reimbursed by any other source and are not claimed on the participant’s income tax return. You may not use an FSA to pay for any type of insurance premiums, including Long Term Care Insurance premiums. The maximum amount an employee may set aside in any tax year will be $5,000 and the minimum will be $250.

The Limited Expense Health Care FSA (LEX HCFSA) is only available to employees who enroll in a FEHB program or under a High Deductible Health Plan (HDHP) with a Health Savings Account. Expenses are limited to dental and vision care services/products that meet the IRS definition of medical care.

The Dependent Care FSA (DCFSA) allows employees to be reimbursed on a pre-tax basis for child care or adult dependent care expenses for qualified dependents that are necessary to allow an employee or the employee's spouse to work, look for work, or attend school full time. The maximum amount for the dependent care FSA (DCFSA) is set by the IRS and it is $5000. If the employee is married and filing a separate income tax return, the maximum amount is $2,500. The minimum amount an employee may set aside is $250. In addition, to be eligible for a dependent care FSA, the person must be claimed on the employee’s tax return, and the expense must be necessary for the employee to work.

Employees will voluntarily enroll for the HCFSA, LEX HCFSA, and/or the DCFSA directly with SHPS, either on line, or through a toll free call to a SHPS customer service representative at 1-877-FSAFEDS (372-3337). Customer service representatives will be available from 9 am until 9 pm Eastern Time, Monday through Friday to answer questions and assist employees who wish to enroll via the phone. Employees will identify an annual amount of salary to be contributed to their FSA(s) via SHPS. Employees can draw upon their FSA accounts for reimbursements as they incur eligible expenses. If all the monies in the account(s) are not used, the remaining monies are forfeited. All 2007 expenses must be submitted to FSAFEDS by May 31, 2007, in order to be reimbursed.

Who is eligible?

Active civilian Federal employees who are eligible for FEHB but need not be enrolled in FEHB. An FSA is not available to annuitants. Employees whose appointments conveys eligibility for FEHB coverage may elect to enroll in the HCFSA upon entry on duty and have 60 days to make an enroll decision/election. All employees with qualified dependents may elect to enroll in the DCFSA except temporary employees with no fixed work schedule (when actually employed/WAE) whose tour of duty is six months or less.

Are there open seasons?

The FSAFEDS open season runs concurrently with the FEHB open season each year.

A web based FSAFEDS calculator is also available.

How can I enroll?

There are two ways to enroll during open season, electronically or telephonically. The electronic enrollment system is at http://www.usdoj.gov/cgi-bin/outside.cgi?https://www.fsafeds.com and is available 24 hours, 7 days a week. Employees may also call the toll free number, 1-877-FSAFEDS (372-3337) and TTY at 1-800-952-0450, and a SHPS customer representative will complete the enrollment interactively with the employee.

What is the effective date of an FSA?

FSAs will be effective on January 1 of each year, and the initial plan year will end on December 31 of each year. However, there is a two and a half month grace period from January 1 to March 15 for account holders to use the money remaining in the previous year's account. The Benefit Period will always run from January 1 of the current benefit period through March 15 of the following year. This includes the grace period from January 1 to March 15. During the grace period, eligible expenses incurred from January 1 to March 15 of the following year can be applied towards the prior year's balance. The intent is to help account holders avoid forfeiting any of the funds they deposited in FSA accounts. The deadline for claims against the prior year account (including claims incurred during the "grace period") is May 31.

Employees who make an election will be eligible to receive reimbursement for covered expenses incurred on or after January 1. In order for an expense to be eligible for reimbursement under an FSA, the expense must be incurred during the plan year, including the grace period. The HCFSA total annual allotment is available when the first allotment is received by FSAFEDS. The DCFSA’s current account balance is available for any claim reimbursement.

The following expenses may be reimbursed under a HCFSA. For a more inclusive list, please see the FSA website:

• tax-deductible;
• related to the diagnosis, treatment or cure of a medical condition, mitigation or prevention of disease that affects any part or function of the body;
• are primarily to alleviate or prevent a physical or mental defect or illness;
• are not reimbursed by FEHB or any other source;
• are incurred by you and/or any dependent you claim on your federal income tax return.
• over-the-counter medications;
• acupuncture;
• childbirth classes;
• Chiropractic care;
• co-payments, coinsurance and deductibles (but not premiums);
• expenses that exceed medical, dental, vision plan limits (dollar or visit maximums; out-of-network providers);
• dental care (including crowns, endodontic services, implants, oral surgery, periodontal services, sealants);
• eye exams, glasses, contact lenses, including prescription sunglasses;
• hearing aids;
• home medical equipment (wheelchairs, oxygen, respirators, etc);
• infertility treatments;
• Laser eye surgery;
• Occupational therapy;
• Orthondontia;
• Orthotics;
• prescription drugs;
• preventive care;
• smoking cessation programs;
• specialized equipment or services for disabled persons (automobile equipment, braille books and magazines, guide or companion animals, home alert systems for visual/hearing impaired persons; note takers or ASL interpreters; tape recorder and typewriter for visually impaired);
• Psychotherapy;
• Speech therapy,
• Transportation expenses related to medical care;
• Well-baby and well-child care;
• Whirlpool baths (with M.D.’s certification);
• Wigs for hair loss from disease (with M.D.’s certification).

Dependent care expenses for a family member may be reimbursed if the family member is under age 13; a person of any age whom you claim as a dependent on your federal income tax return; mentally or physically incapable of caring for himself or herself; and, the care is necessary to allow your employee and if married, his or her spouse to work.

DCFSA eligible expenses:

• Dependent care expenses that let you and your spouse work, look for work, and attend school full time;
• Placement fees for a dependent care provider, such as an au pair;
• Child care at day camp, nursery school, by a private sitter;
• Late pick up fees;
• Before and after school care (but not tuition);
• Care of an incapacitated adult living with you;
• A housekeeper who also cares for an eligible dependent.
• Summer or holiday camps

Insurance premiums of any kind - non FEHB coverage, Medicare Part B, Tricare, etc., do not qualify for reimbursement. FEHB premiums are already deducted pre-tax through premium conversion.

For expenses incurred from January 1, 2007, to March 15, 2008, claims must be filed by May 31, 2008. Any monies left in the account after the plan year will be forfeited.

What are the costs involved?

There are no costs to participants. On November 23, 2003, President Bush signed the National Defense Authorization Act into law. Section 1127 of this law (P.L. 108-136) requires agencies participating in FSAFEDS to cover the administrative fee(s) on behalf of their enrolled employees.

You may fax your claim forms on 1-866-643-2245 or mail your claims to FSAFEDS Program, P. O. Box 36880, Louisville, KY 40233. Expenses are incurred on date of service, not when expense is paid and expenses must be incurred within the plan year.

Can I enroll at other times outside an open season?

If you participate in an FSA, there are certain Qualified Life Events (QLEs) that allow you to change and/or enroll. These QLEs are:

• change in legal martial status, i.e., marriage, legal separation, annulment, divorce, death of spouse;
• change in number of your dependents, through birth or adoption, youngest dependent aging up; change in dependent eligibility (child at 13 not eligible for DCFSA coverage);
• change in employment status that affects your eligibility for benefits;
• change in child care/elder care or cost or coverage such as a significant cost increase charged by the current daycare provider, or a change in the daycare provider. This applies to DCFSA only. It does not apply to HCFSA or LEX HCFSA;
• LWOP is a QLE only if due to military deployment;
• death of dependent.

SHPS will make the QLE determinations for the FSAs. All changes to elections must be on account of and consistent with the status change/life event. Changes will be effective on the first pay date after approve and verification.