Department of Management Services

Savings and Spending Accounts

The state offers eligible employees three reimbursement accounts (also called flexible spending accounts or FSAs) that can provide you with a tax break on your predictable out-of-pocket costs. Use the chart below to see how the accounts work and check out the Frequently Asked Questions and/or see the Savings and Spending Accounts Guide at the bottom of the Resources page; then use the tax savings calculator to help you decide if the reimbursement accounts have value for you. If you have a high deductible HMO or PPO plan, read more about opening a health savings account or HSA. Chard Snyder is the administrator for all savings and spending accounts. 

Carryover

For the healthcare FSA and limited purpose FSA, December 31, 2018, is the last day to incur claims for the 2018 plan year, and you must submit all claims by April 15, 2019. Otherwise, if you have funds remaining at the end of 2018, a maximum of $500 will carry over to the next plan year while any funds in excess of $500 will be forfeited.

Here are some examples of how the healthcare FSA and limited purpose FSA will work moving from plan year 2017 to 2018 and from plan year 2018 to 2019.

2017 to 2018 Plan Year

Mary elected the maximum contribution of $2,600 for the 2017 plan year. On Dec. 31, 2017, Mary has $275 remaining in her 2017 healthcare FSA. Mary must incur eligible expenses by March 15, 2018, to use or be reimbursed from her 2017 remaining balance and must file all claims by April 15, 2018. Mary incurs services on March 1, 2018, in the amount of $200. On April 15, 2018, Mary files her claim for $200 and is reimbursed from her healthcare FSA. On April 16, 2018, Mary has $75 left in her account which she will forfeit since she did not file any other claims before the April 15 deadline.

2018 to 2019 Plan Year

Mary elects the maximum contribution of $2,650 for the 2018 plan year. On Jan. 1, 2019, Mary has $475 remaining in her 2018 healthcare FSA. The $475 will carry over to the 2019 plan year. Mary elected the maximum contribution of $2,650 for the 2019 plan year. Mary then has $3,075 for the 2019 plan year. Mary can file claims for services incurred in 2018 through April 15, 2019. Any services incurred in 2018 will be deducted from the $475 carried over.

IMPORTANT NOTE:

The carryover does not apply to the dependent care FSA. For the dependent care FSA, March 15, 2019, is the last day to incur claims for the 2018 plan year, and you must submit all claims by April 15, 2019. Otherwise, you lose any remaining money.

      

Stay in Touch with Your Mobile App

Do these tasks from the palm of your hand: view your account balances and transaction details, file claims, attach receipts through your phone, add receipts to claims already submitted and receive the text alerts you choose by submitting your phone number.

Download Chard Snyder's free mobile app at the App Store or Google Play. View these videos to learn more.

  

Savings and Spending Accounts Comparison Chart
PDF version of this chart (Adobe PDF Document 78.21 KB)

How it Works

Healthcare FSA

You deposit pretax money into the account through payroll deductions to pay for eligible medical, dental, vision, preventative and prescription drug expenses.

  • Using the Benefit Card to pay for eligible services and items;
  • Pay your provider directly from your account online; or
  • Pay out of pocket for eligible medical expenses; then submit claims to be reimbursed.
Limited Purpose FSA

You deposit pretax money into the account through payroll deductions to pay for eligible dental, vision and preventive care expenses not covered by your health plan.

  • If you are enrolled in a high deductible health plan (HDHP), you can choose a Limited Purpose FSA. You cannot choose a Healthcare FSA if you are enrolled in an HDHP and eligible for the HSA.
  • Use the Benefit Card to pay for eligible services and items;
  • Pay your provider directly from your account online; or
  • Pay out of pocket for certain eligible expenses; then submit claims to be reimbursed.
Dependent Care FSA

You deposit pretax money into the account through payroll deductions. You get reimbursed for eligible services (not healthcare related) to care for children under age 13 or a dependent age 13 and older who live with you at least 8 hours a day and who need supervised care, such as an elderly parent or spouse with a disability.

  • Use the Benefit Card to pay for eligible dependent care services;
  • Pay your provider directly from your account online; or
  • Pay out of pocket for eligible dependent care expenses; then submit claims to be reimbursed.
Health Savings Account (HSA)

The state contributes pretax money to your personal bank account each month for you to pay for eligible health expenses and save for future costs. You may also deposit pretax money into the account. Enroll in an HDHP online in People First, which automatically opens your HSA AdvantageTM  account.

  • The state contributes $41.66/ month for single coverage (up to $500/yr) and $83.33/month for family coverage (up to $1,000/yr).
  • Pay for eligible expenses from this savings account at time of service or purchase;
  • Pay your provider directly from your account online; or
  • Pay out of pocket for eligible expenses; then reimburse yourself from the account.
Health Reimbursement Account (HRA) and Post-Deductible HRA

Shared Savings Program rewards are credited to your account as they are earned. HRA money is used to pay for eligible medical, dental, vision, preventive and prescription drug expenses.

  • Use the Benefit Card to pay for eligible services and items;
  • Pay your provider directly from your account online; or
  • Pay out of pocket for eligible expenses; then submit claims to be reimbursed.

The Post-Deductible HRA works the same way except funds are not available for use until you have met the federal health plan deductible. Single deductible is $1,350 and Family deductible is $2,700.

Who is Eligible

Healthcare FSA Benefit-eligible employees.
Limited Purpose FSA Benefit-eligible employees.
Dependent Care FSA Benefit-eligible employees.
Health Savings Account (HSA) Employees enrolled in an HDHP.
Health Reimbursement Account (HRA) and Post-Deductible HRA Enrollees who have a State Group Insurance health plan are eligible. If you enroll in an HDHP, you are only eligible for the Post-Deductible HRA. Your HRA becomes active once your first reward has been credited to the account.

Shared Savings Program Rewards

Healthcare FSA Yes. Earn up to $500 in Shared Savings rewards.
Shared Savings Program rewards are credited to your account on January 1st of the following plan year.
Limited Purpose FSA Yes. Earn up to $500 in Shared Savings rewards.
Shared Savings Program rewards are credited to your account on January 1st of the following plan year.
Dependent Care FSA No.
Health Savings Account (HSA) Yes. Earn up to the annual contribution limit in Shared Savings rewards.
Shared Savings Program rewards are credited to your account as they are earned.
Health Reimbursement Account (HRA) and Post-Deductible HRA Yes. There is no limit in the amount of Shared Savings rewards earned.
Shared Savings Program rewards are credited to your account as they are earned.

Employee Contribution Limit

Healthcare FSA Yes.
  $60 minimum/year
  $2,650 maximum/year.
Limited Purpose FSA Yes.
  $60 minimum/year
  $2,650 maximum/year.
Dependent Care FSA Yes.
  $60 minimum/year
  $5,000 maximum/year/household.
Health Savings Account (HSA) Yes.
  $3,500/year for single coverage
  $7,000/year for family coverage (Limits include the state’s contribution.)
     Employees ages 55+ may make catch- up contributions of an additional
  $1,000/year.
Health Reimbursement Account (HRA) and Post-Deductible HRA N/A

When is Money Available

Healthcare FSA

You deposit pretax money into the account through payroll deductions to pay for eligible medical, dental, vision, preventative and prescription drug expenses.

  • Using the Benefit Card to pay for eligible services and items;
  • Pay your provider directly from your account online; or
  • Pay out of pocket for eligible medical expenses; then submit claims to be reimbursed.
Limited Purpose FSA

You deposit pretax money into the account through payroll deductions to pay for eligible dental, vision and preventive care expenses not covered by your health plan.

  • If you are enrolled in a high deductible health plan (HDHP), you can choose a Limited Purpose FSA. You cannot choose a Healthcare FSA if you are enrolled in an HDHP and eligible for the HSA.
  • Use the Benefit Card to pay for eligible services and items;
  • Pay your provider directly from your account online; or
  • Pay out of pocket for certain eligible expenses; then submit claims to be reimbursed.
Dependent Care FSA

You deposit pretax money into the account through payroll deductions. You get reimbursed for eligible services (not healthcare related) to care for children under age 13 or a dependent age 13 and older who live with you at least 8 hours a day and who need supervised care, such as an elderly parent or spouse with a disability.

  • Use the Benefit Card to pay for eligible dependent care services;
  • Pay your provider directly from your account online; or
  • Pay out of pocket for eligible dependent care expenses; then submit claims to be reimbursed.
Health Savings Account (HSA) As the state deposits amounts into your Chard Snyder HSA AdvantageTM personal savings account.
Health Reimbursement Account (HRA) and Post-Deductible HRA HRA funds will be available within 5 business days of the reward notification to Chard Snyder.
If you choose a Post-Deductible HRA, funds are available for use after you have met the deductible. Single deductible is $1,350 and Family deductible is $2,700.

Payment Card

Healthcare FSA Yes. The Chard Snyder Benefit Card.
Limited Purpose FSA Yes. The Chard Snyder Benefit Card.
Dependent Care FSA Yes. The Chard Snyder Benefit Card.
Health Savings Account (HSA) Yes. The Chard Snyder Benefit Card.
Health Reimbursement Account (HRA) and Post-Deductible HRA Yes. The Chard Snyder Benefit Card.

Deadline to Use Funds

Healthcare FSA Yes. Use funds by December 31 and submit all claims by April 15 of the next plan year. If any funds are remaining, up to $500 will be carried over into the following plan year.
Amounts over $500 will be forfeited.
Limited Purpose FSA Yes. Use funds by December 31 and submit all claims by April 15 of the next plan year. If any funds are remaining, up to $500 will be carried over into the following plan year.
Amounts over $500 will be forfeited.
Dependent Care FSA Yes. Grace period to use funds ends March 15 of the next plan year and you must submit all claims by April 15 of the next plan year. Otherwise, you lose any remaining money.
Health Savings Account (HSA) No. HSA works just like your savings account. Balance rolls over from year to year; take the money with you if you leave state employment.
Health Reimbursement Account (HRA) and Post-Deductible HRA Use funds by December 31 and submit all claims by April 15 of the next plan year. Balance rolls over from year to year.

Health Plan

Healthcare FSA N/A
Limited Purpose FSA High Deductible PPO or HMO.
Dependent Care FSA N/A
Health Savings Account (HSA) High Deductible PPO or HMO.
Health Reimbursement Account (HRA) and Post-Deductible HRA Any health plan offered by the state.

Enroll in Another Savings or Spending Account

Healthcare FSA Yes. Dependent Care FSA, HRA.
Limited Purpose FSA Yes. HSA, Dependent Care FSA, and Post-Deductible HRA.
Dependent Care FSA Yes. Healthcare and Limited Purpose FSA, HSA, HRA or Post-Deductible HRA.
Health Savings Account (HSA) Yes. Limited Purpose FSA, Dependent Care FSA, and Post-Deductible HRA.
Health Reimbursement Account (HRA) and Post-Deductible HRA Yes. Healthcare FSA, Limited Purpose FSA, and Depended Care FSA. If enrolled in an HDHP, you must choose the Post-Deductible HRA.

How to Enroll

Healthcare FSA
  1. Enroll online in People First.
  2. Complete the Dependent Verification process.
  3. Complete the Choose Plan step by selecting the Change or Add icon in the Change column for the spending account type.
  4. Enter the Annual Election Amount and click the Save button.
    • Enrolling during the year? Be careful. We divide this annual dollar amount by the remaining number of payrolls left in the year and subtract accordingly from your pay.
    • You may want to choose a lower annual amount today and raise it during open enrollment for next year.
  5. Complete the Dependent Summary, Plan Summary and Shared Savings Program* screens.
  6. Enter your password and select the Complete Enrollment button. Once you enter an amount, you can change only during open enrollment or during the year with a QSC event.
Limited Purpose FSA
Dependent Care FSA
Health Savings Account (HSA)
  1. Enroll online in People First.
  2. Complete the Dependent Verification process.
  3. Enroll in a high deductible health plan.
  4. If you want to contribute money in addition to the state’s contribution, enter your contribution amount. You may change this amount at any time.
  5. Enter your password and select the Complete Enrollment button.
  6. We automatically enroll you in the HSA, which starts the state’s contributions.
Health Reimbursement Account (HRA) and Post-Deductible HRA

You do not need to enroll into the HRA.

  • At the time of enrollment into your benefit plans, you can select the HRA as your account of choice for rewards earned through the Shared Savings Program. (There will be prompts to walk you through the process after you complete your benefit enrollment.)
  • You may update your account selection at any time by logging into People First and clicking on the Shared Savings Quick Link.

  

  

How FSAs work

  1. You set aside pre tax dollars from your paycheck.
  2. You submit eligible expenses for reimbursement throughout the year.
  3. You are reimbursed from your FSA for the eligible expenses you submit.

If you pay federal income tax and Social Security tax, this creates about a 20% savings on most of the health or dependent care services you buy. The savings could be more - depending on your income tax rate. And yet, even when you pay no income taxes, the Social Security tax savings is about 7.5% - or $7.50 for each $100 you spend. How much can I save using an FSA?

  

Estimate Your Expenses

Before enrolling:

 

Claiming Your Reimbursement Account Benefits

You claim reimbursement account benefits by submitting a claim form (Adobe PDF Document 104.57 KB) and appropriate supporting documentation to Chard Snyder by April 15.

      

Frequently Asked Questions (FAQ)
Still have questions? Check out the Frequently Asked Questions for each plan type to find out more.

Flexible Spending Accounts (FSA) - FAQ  (Adobe PDF Document 166.14 KB)  including:

  • Healthcare FSA
  • Limited Purpose FSA
  • Dependent Care FSA

Health Savings Account (HSA) - FAQ  (Adobe PDF Document 160.91 KB)

 

Health Reimbursement Account (HRA) and Post-Deductible HRA - FAQ (Adobe PDF Document 160.47 KB)