Medical Expense Reimbursement (FSA) Plan
Employees can save money by paying for certain medical care expenses with pre-tax dollars by participating in the Medical Expense Reimbursement Plan, a type of Flexible Spending Account (FSA). Each year, during open enrollment, you may enroll and authorize a bi-weekly deduction from your pay. When you or your dependents incur an eligible expense, file a Medical Expense Reimbursement (FSA) Plan Rembursement Claim, along with proof of payment. Reimbursement requests must be received no later than ninety (90) days after the end of the plan year for expenses incurred during the plan year.
For detailed information, refer to the Medical Expense Reimbursement (FSA) Plan documents:
HIPAA Notice of Privacy Practices
Employees must meet the eligibility requirements specified in their Memorandum of Understanding (MOU), Exempt Compensation Plan, salary ordinance or contract.
Expenses are generally considered eligible for reimbursement if the expenses are incurred for the diagnosis, cure, mitigation, treatment or prevention of disease. The expenses must be incurred primarily to alleviate or prevent a physical or mental defect or illness. Expenses solely for cosmetic reasons generally are not considered expenses for medical care. Also, expenses that are only beneficial to one's general health (e.g. health spas, vitamins, etc.) are not considered expenses for medical care.
Invoices, receipts, bills or other statements from an independent third party showing the amount and date of the qualifying medical expenses incurred must be attached to the claim form, together with proof that the expense was paid by you, and any other documentation that the Plan Administrator may request. Over-the-counter medications require a physician's prescription, an adequate receipt, and a copy of the label or packaging for the prescription. If requesting reimbursement for over-the-counter medications, the name of the medication must appear on the receipt and the item should be circled on the receipt. Click [here] for more information.
Requests for reimbursement may be made as expenses are incurred or at the end of the plan year. However, except for the final reimbursement claim for a plan year, no claim for reimbursement for less than $25.00 will be held until other reimbursement claims are made and claims received total $25.00 or more.
Contribution limits are determined by the employee's bargaining unit. Refer to the appropriate Memorandum of Understanding (MOU), Exempt Compensation Plan, salary ordinance, or contract for specific minimum/maximum contribution limits.
According to Federal tax law, any amounts in your FSA account that are not used to reimburse you for eligible medical expenses do not "roll-over" from one plan year to the next. The funds will be forfeited and applied towards the cost of administering the plan. It is important that you carefully calculate you expected medical expenses before making your FSA contribution election.