Health Reimbursement Account (HRA)
If you choose the Deductible HMO you are also electing the Health Reimbursement Account. The HRA helps reduce your and your covered dependents’ out-of-pocket expenses by reimbursing you for deductible expenses that exceed $1,000 for any covered individual or $2,000 for a family. For example, with a deductible for one family member of $2,000, you would pay the deductible directly and once you have paid more than $1,000 you then submit a claim for reimbursement of any cost above the first $1,000 of that deductible. You will be reimbursed tax-free for qualified medical expenses through the Health Reimbursement Account.
You are responsible for submitting HRA claims to 24HourFlex, the County’s HRA Administrator. You can submit expenses as they are incurred and 24HourFlex will track when you have paid your share ($1,000 individual/$2,000 family) and then will begin reimbursing you for the remaining amount of the deductible when a proper claim form and Explanation Of Benefits are submitted. The unused balance does not carry forward to the next year. If you prefer paper, HRA claim forms can be found on My Benefits.
Any reimbursed funds are not eligible under the Healthcare Flexible Spending Account.
Flexible Spending Account (FSA)
Flexible Spending Accounts are bank accounts in which you set aside a predetermined amount of your biweekly pre-tax pay (approximately 25% savings), to be used toward qualified medical and dependent care expenses. You can use your FSA to pay medical, dental and vision deductibles, copays, and/or child care expenses. To participate, you must make an annual election which is then deducted from your paycheck pre-tax, biweekly and deposited into a Healthcare FSA and/or Dependent Care FSA throughout the Plan Year. All claims must be submitted to 24HourFlex no later than February 28 of the following Plan Year. You must budget carefully. The IRS has strict rules:
Rule 1 – Use it or lose it Any money left in your FSA at the close of the Plan Year will be forfeited. You will also forfeit money in your account when your participation in the FSA ends. If employments ends, you may choose to continue the Healthcare FSA through COBRA continuation.
Rule 2 – Separation of plans Your FSA can be used only for qualified expenses as determined by the IRS and accounts must be kept separate. If you have money left in your Dependent Care account, you may not use that money to pay for healthcare expenses. Likewise, money in your Healthcare FSA cannot be used toward dependent care.
Rule 3 – Irrevocability You cannot change the annual election for your Healthcare FSA and Dependent Care FSA until the next Open Enrollment or until you experience a qualified life event.
Healthcare FSA
You can use a Healthcare FSA to pay for eligible healthcare expenses that you incur for yourself or your dependents.
Eligible Expenses
- Deductibles, coinsurance and copays for medical, dental or vision care that are not reimbursed under the HRA
- Any qualified expenses for medical care, dental care or vision care that are not paid under an insurance plan
- Out-of-pocket costs for prescription drugs, including oral contraceptives
- Over-the-counter drugs, contraceptives, feminine hygiene and first-aid supplies
- Orthodontia
- Chiropractic services
- Eyeglasses, contact lenses, contact lens cleaning solutions and supplies and vision correction surgery Specialized equipment for disabled persons
- Guide or guide dog for persons who are visually or hearing impaired
Hearing exams, hearing aids and necessary batteries
*See 24hourflex.com/eligible-expenses for an all inclusive list.
Dependent Care FSA
You can use a Dependent Care FSA to pay for eligible dependent care expenses, such as daycare, for your dependents under the age of 13. If you are married, your spouse must be employed, a full-time student, looking for full-time employment, or disabled.
Eligible Expenses
• Day care
• Pre-school
• Day camp
• Before and after school care
• Adult/elder care (adult may qualify as dependent if you provide more than
Transit FSA
Qualified transportation plans allow you to deduct money from your paycheck before taxes to pay for transit expenses (public mass transit or 7 + passenger van pools) to and from work. Unlike other pre-tax accounts, a transit plan allows greater flexibility with enrollment and election changes, making it a simple way to save money on your public transportation commute.
You may elect to deduct an amount from your paycheck each pay period, up to the monthly limits set by the IRS. You can enroll, change your election, or revoke your election at any time before the start of each pay period via MyBenefits. You will receive a 24HourFlex debit card which can be used to pay for eligible transit expenses. You can also submit claims to be reimbursed for money you spend out-of-pocket on eligible expenses. Funds are available on your debit card after they are deducted from your paycheck.
Adoption FSA
Adoption Flexible Spending Accounts allow you to set aside pre-tax dollars to pay for eligible adoption expenses. This plan will allow you to reimburse yourself for reasonable and necessary expenses that you incur in the process of legally adoption an eligible child, including; adoption fees, court costs, attorney fees and related travel costs. The pre-tax treatment of a child that is not a US citizen only applies in the year in which the adoption is final. This plan can be elected during Open Enrollment or upon starting the adoption process as a Qualified Life Event.
*All FSAs have stringent rules and regulations. For details on eligible or ineligible expenses, please visit the IRS website at www.irs.gov.
Contribution Limits:
- Healthcare FSA $2,750 annual maximum
- Dependent Care FSA $5,000 annual maximum
- Transit FSA $270 monthly maximum
- Adoption FSA $14,300 annual maximum