Flex Spending Account Update
The Flex Spending Account (FSA) is a negotiated state employee benefit that helps save you money by allowing you to pay certain expenses with pre-tax dollars. The Health Care Spending Account and the Dependent Care Advantage Account are benefit programs under New York State’s FSA.
On March 27, 2020, the CARES Act (Coronavirus Aid, Relief and Economic Security), which includes important provisions for users of health care spending accounts was signed into law.
New York State employees who currently participate in the Health Care Spending Account will receive notice from the plan administrator regarding enhancements to the program made by the CARES Act, which include:
• Over-the-counter drugs and medicines can be paid for or reimbursed through the flexible spending account; they no longer require a doctor’s prescription to be FSA qualified medical expenses.
• Menstrual care products (tampons, pads, liners, etc.) are now considered FSA qualified medical expenses and can be paid for or reimbursed through the flexible spending account.
WageWorks, the Health Care Spending Account program administrator, is updating its system to reflect these requirements from the CARES Act to soon enable debit card payment at the point-of-sale. Should FSA account enrollees incur costs for qualifying medical expenses, claims can be submitted through the WageWorks app or online at www.flexspend.ny.gov.
Although the CARES Act does not appear to make changes impacting the Dependent Care Advantage Account (DCAA), the following information may be helpful to enrollees during this difficult time:
- DCAA enrollees can stop their DCAA deductions or change their election amounts if they experience an eligible change in status.
- A change in status could mean a change in care providers or change in work schedule (for the employee or their spouse).
- For further information, please visit the Dependent Care Advantage Account page.
- Submission of enrollment change requests should be made to GOER’s Enroll Online page.
- There is no limit to the number of changes an employee can submit to the DCAA during the year. Please see the website for additional information.
- Reducing or stopping DCAA payroll contributions does not impact an existing DCAA balance. Any money contributed (including the employer contribution) to DCAAs remain in the account for employees to use during the plan year.
- Any money contributed remains in your account to pay for qualified expenses until Dec. 31, 2020.
The claims deadlines have been extended to April 30, 2020. Enrollees with a balance remaining in their 2019 Health Care Spending Account and/or their 2019 Dependent Care Advantage Account were emailed a notice to submit claims for reimbursement by the April 30, 2020 deadline.
Additional information is available by calling the FSA hotline at 1-800-358-7202 or visiting www.flexspend.ny.gov.