Flexible Spending Accounts
Medical Expense Flexible Spending Accounts Overview 2014
You can set aside pre-tax salary into a medical flexible spending account to cover out-of-pocket expenses like co-pays, deductibles and prescription costs. It’s kind of like giving yourself a raise, because you save the money you would have paid in taxes. If you divert $2,500 annually, for example, and your combined federal and state income tax rate is 40 percent, that amounts to $1,000 in savings.
The limit for how much you can put into a medical flexible spending account is $2,500. Those funds must be used for qualified medical expenses for you, your spouse and your eligible dependents. Click here for a complete list of qualifying expenses.
Limited Use Debit Card
If you set up a medical flexible spending account you'll get a debit card. Here's what you need to know about the debit card, which is administered by a company called Discovery Benefits:
Where you can use it: The debit card can only be used at major chain pharmacies, or at any Riverside facility. Click here for a complete list of pharmacies that accept the debit card.
Documentation: The card can only be used for certain kinds of expenses. That's why you will be required in many cases to provide documentation showing the date of service, name of the provider, what the visit was for, and the amount paid. If you use your card at a Riverside facility, you'll still need to provide documentation to show it was for a service that counts as a qualifying expense. Many team members use the Explanation of Benefits sent to them by their insurance provider or a copy of the visit bill as documentation.
You can also submit documentation for an amount that you paid for a qualifying expense at any location, and you will be reimbursed.
It is not necessary to provide documentation for prescriptions at pharmacies where your debit card is accepted.
Process for getting cards: All team members who enroll in the medical flexible spending account for the first time in 2014 will receive two debit cards through U.S. Mail at their home address. The cards can be used starting on Jan. 1, 2014. You may request additional cards through Discovery Benefits for your spouse, if married, and your dependents age 18 or over at no additional cost.
If you were previously enrolled in the medical flexible spending account in 2013, you can continue to use the limited-use debit card you already received. You will not need new cards.
Note that it is the participant's responsibility to ensure that the debit card is used only for qualified medical expenses in a doctor/facility setting.
Weight Loss and Your Medical FSA Account
You can include your weight loss program in your Medical FSA account if your physician has diagnosed you with a specific disease such as obesity, hypertension heart heart disease.
You cannot include your memberships to a gym, or special diet food or beverages.
You can include:
Separate fees that may be charged for weight loss activities and/or programs
Fees paid for membership with a weight reduction group
Attendance fees for periodic meetings.
Dependent Care Flexible Spending Accounts Overview 2014
Flexible spending accounts for dependent (child/elder) care offer the opportunity for you to set up a personal account with pre-tax dollars to pay for up to $5,000 in qualified out-of-pocket dependent care expenses.
Discovery Benefits has mobile apps for iPhone and Droid. Once your account has been opened, you can sign up for their mobile app. You can subscribe to text alerts for receipt reminders, view claim transactions, and much more.
Discovery Benefits Information
Learn more about flexible spending accounts and the services of Discovery Benefits by viewing the information below.