Employee Benefits in the Age of COVID-19 – Part Three: Flexible Spending Accounts
In light of the ongoing COVID-19 pandemic, Exchange associates may enroll or make some changes to their DoD NAF health care Flexible Spending Accounts (FSA) from July 13-24 of this year. More information about DoD NAF FSAs can be found at www.nafhealthplans.com.
This is the third in a weekly series to help Exchange associates understand how their benefits can help them navigate the uncertainty of the COVID-19 pandemic. This week’s story explores Flexible Spending Accounts.
As Americans’ health care needs continue to evolve amidst the COVID-19 pandemic, the Internal Revenue Service (IRS) is making guidelines for health care Flexible Spending Accounts (FSAs) a little more flexible.
Per IRS Notice 2020-29 and 2020-33 for calendar year 2020, employers—including the Exchange—may permit employees to make mid-year FSA elections and adjustments. From July 13-24 of this year, Exchange associates may:
- Enroll in a health care FSA
- Increase their FSA election
- Decrease their FSA election
- Note: Although you cannot cancel your FSA, you will be able to decrease the amount. In these cases, employees may only decrease this amount to their current YTD contributions or the amount of claims that have already been paid (whichever is greater).
- Decrease dependent care FSA election to their current YTD contributions
Additionally, the FSA rollover amount for 2020 has increased from $500 to $550, allowing associates to carry over more contributions into 2021.
An FSA is a special, tax-exempt savings account that can be used to pay for certain out-of-pocket health care costs, including copayments, deductibles, some prescription and non-prescription drugs, and more.
In other benefits news, the Exchange’s eBenefits site is undergoing a major upgrade, including new, user-friendly features and more self-service options. Starting in mid-July, associates will be able to sign up to receive text messages, download forms and documents, and review their Summary of Benefits and plan descriptions. Stay tuned for more.
Once the updated elections has been made when will it go into affect.
Hi Erica, thanks for the question! Per FA-Benefits, it will be effective the day the election is made during the period between July 13 and 24. For example, if someone changes their elections on July 15, it will become effective the same day, July 15.
Are we suppose to receive a card to be charges to when we go to the doctor? If so whom do I need to contact in order to receive one?
Breyanka:
Thank you for writing to your Exchange Post. I’ve sent your question to the proper people who’ll be able to answer your question.
Steve Smith
Exchange Post
I would like to increase my FSA deduction during this period. What is the new maximum for FSA deductions?
Hi, Joseph,
Great question — can you kindly drop us a note at ExchangePost@aafes.com? We can help with an answer.
Once an increase is elected & in effect when will funds be on your payflex card?
Hi Tracy, thanks for the comment! I checked with the benefits team, who advised changes are sent every Thursday to the vendor. The special enrollment period ends July 24, so that means it will be sent on July 30. It takes a couple of days for the vendor to update their systems. Hope this helps!
Hi there, Please advise when funds will be available on the Payflex card?