Medical Plan Spending Account(s) Important Updates for Calendar Year 2020
Over the Counter Item (OTC) List Expands (FSA & HSA)
Due to the passage of the CARES Act, the following items are now eligible for reimbursement through your Flexible Spending Account and/or Health Savings Account:
Please note: the following applies to Health Care Flexible Spending Accounts (FSA) only; this does not apply to Health Savings Accounts (HSA).
In light of the COVID-19 pandemic, the IRS has revised the carryover amount for employees who participate in calendar year 2020 Health Care Flexible Spending Account(s) (FSA). In order to be eligible for this carryover provision, participants must have elected the Health Care FSA coverage for calendar year 2020. The carryover is available for one year while enrolled and any unused carryover funds remaining in the account at the end of the plan year will be forfeited. This carryover is managed by PayFlex and these funds will be automatically transferred upon the conclusion of the run-out period.
What does this mean for me?
Due to the passage of the CARES Act, the following items are now eligible for reimbursement through your Flexible Spending Account and/or Health Savings Account:
- Menstrual care/feminine hygiene products are now reimbursable.
- Over-the-counter drugs no longer require a prescription to be reimbursed.
- Please visit www.fsastore.com for more information about reimbursable expenses.
Please note: the following applies to Health Care Flexible Spending Accounts (FSA) only; this does not apply to Health Savings Accounts (HSA).
In light of the COVID-19 pandemic, the IRS has revised the carryover amount for employees who participate in calendar year 2020 Health Care Flexible Spending Account(s) (FSA). In order to be eligible for this carryover provision, participants must have elected the Health Care FSA coverage for calendar year 2020. The carryover is available for one year while enrolled and any unused carryover funds remaining in the account at the end of the plan year will be forfeited. This carryover is managed by PayFlex and these funds will be automatically transferred upon the conclusion of the run-out period.
What does this mean for me?
- The carryover provision for unused FSA funds has increased from $500 to $550.
- Participants who do not exhaust 2020 elections are permitted to have a maximum of $550 of the remaining FSA balance carryover into your PayFlex account for the 2021 plan year.
- You do not need to take any action for the rollover. The University will work with PayFlex on the transition at the end of the year.