Healthcare Flexible Spending Account
If you’re looking for frequently asked questions, how-to videos, and tips for managing your Healthcare Flexible Spending Account, also known as an HCFSA or Healthcare FSA, you’ve come to the right place.
What is an HCFSA?
A Healthcare Flexible Spending Account, or HCFSA, allows you to deduct money from your paycheck, pre-tax, and deposit those funds into your account to pay for eligible medical expenses. Expenses include prescriptions, dental and vision essentials, deductibles, and copayments.
Healthcare FSA FAQs
How do I access my HCFSA online?
If you already have an American Fidelity online account, simply log in to your account and select Access My FSA/HRA Account. If you have not created an account, click here to register now. Then, follow the prompts to complete the registration process. You will use this same registration information on the mobile app, AFmobile®.
How much can I contribute to my HCFSA?
The 2018 maximum allowed by law to contribute pre-tax into this account is $2,650 per plan year. Please note, this amount may be further limited by your employer.
What happens to unused money in my account?
HCFSAs are “use or lose” accounts. This means, at the end of your plan year, the funds remaining in your account may be forfeited and returned to your employer.
If your employer has elected a carryover provision, you may be able to carry over up to $500 of unused HCFSA contributions to the next plan year.
If your employer has elected a grace period, you will have 2.5 months following the end of your plan year to incur HCFSA claims for the previous plan year’s account balance.
Your plan also includes a runoff period that allows you to file claims for the previous plan year’s expenses. However, these expenses must have been incurred during the plan year or grace period (if applicable).
Log in to your online account to view your plan dates or talk to your employer to discuss specifics.
Who is covered by an HCFSA?
Only an individual who is a spouse, “qualifying child,” “adult child,” or “qualifying relative” of the account holder can be considered a qualifying dependent for reimbursement of medical expenses. View your account information by logging in to your American Fidelity account.
What is the difference between an HCFSA and a Health Reimbursement Arrangement (HRA) or Health Savings Account (HSA)?
There are several differences between these accounts. For example, unlike an HCFSA, HRAs are funded solely by your employer. And unlike an HCFSA, the funds in an HSA roll over from year to year.
For more examples, check out this chart of differences between HCFSAs, HSAs, and HRAs.
What is the difference between an HCFSA and a Limited Purpose FSA (LPFSA)?
If you have an HSA, you cannot enroll in an HCFSA. However, you can enroll in an LPFSA. Additionally, LPFSAs are typically reserved for paying specific expenses, like dental and vision costs.
What is the difference between an HCFSA and a Dependent Care Account (DCA)?
An HCFSA covers eligible medical expenses that you would otherwise pay for out of pocket. A DCA covers employment-related expenses for dependent care. These expenses must be services that allow you to go to work, and typically include day care and elder care for legal tax dependents.
Can I transfer money from my DCA to my HCFSA?
No. Contributed funds must remain in their designated account.
Benefits Debit Card
What is a Benefits Debit Card?
A Benefits Debit Card allows you to pay for eligible expenses, such as prescriptions and copayments. If your employer has elected to provide a Benefits Debit Card, you may use this card instead of paying out of pocket.
Please note – if you use your Benefits Debit Card to pay for eligible medical expenses, you must submit a receipt* for every transaction.
Where can I use my Benefits Debit Card?
My Benefits Debit Card was lost or stolen. How do I get a new one?
Why do I have to submit receipts for every HCFSA claim?
The Internal Revenue Code (IRC) regulations have requirements stating that expenses must be substantiated using itemized receipts, third party statements, or an Explanation of Benefits. To comply with IRC guidelines, we request documentation of your expense to verify the eligibility of the purchase.
How do I submit documentation to an existing HCFSA claim?
First, log in to your online account or log in on AFmobile® and select Access My FSA/HRA Account. Then, click the Claim Activity tab from the Claims section of the portal. Then, select Add Receipt next to the specific claim you’d like to modify.
You can also add documentation by accessing the Transactions tab from the My Accounts section of your account. Click Add Receipt next to the applicable claim.
Note: Transactions that don’t need additional documentation will not have the Add Receipt functionality.
What information does a claim documentation or receipt need to include?
Your documentation should include:
- Itemized receipts for an expense
- Original date of service
- Description of service rendered or expense
- Charges for the service or expense
- Provider of the service or expense
- Recipient of the service or expense
Why did I receive a “request for documentation” letter in the mail?
You will receive a request for documentation via mail if you used your Benefits Debit Card to make a Healthcare FSA purchase, or if you submitted an out of pocket reimbursement claim without a receipt. You also may receive this letter if the documentation you submitted wasn’t sufficient.
These letters are sent the day after a purchase is made or when the claim is reviewed and determined to be missing documentation or containing insufficient information. So, when receiving this letter, you may have already submitted the necessary documents.
Why did I receive an “ineligible” or “insufficient documentation” letter, and what should I do now?
You will receive this letter if your Benefits Debit Card was used for an expense incurred outside the plan year, an ineligible expense, or if the documentation you submitted was insufficient.
When the documentation cannot be provided or the expense is ineligible, you have three options:
- Submit a different itemized receipt to offset the transaction amount.
- Contact American Fidelity to make a credit card payment.
- Submit a check in the amount of the transaction to be applied to your Healthcare FSA account.
How do I file an HCFSA claim?
The fastest way to file a claim for reimbursement is through your online account or with AFmobile. Simply log in to your account to get started, or download AFmobile from the Apple App Store or Google Play Store.
To mail or fax your claim, complete a Healthcare FSA and HRA Reimbursement Claim Form and include all applicable receipts and documentation. Please note, paper claim filing is not the fastest option. File a claim online or through AFmobile to get your money faster.
Eligible expenses generally must have been incurred during the current plan year. Log in to your online account or check with your employer for specific rules applicable to your plan.
When will my claim be paid?
Once your claim and all required documentation have been received, the turnaround time for claims processing is generally 5-7 business days.
How will I receive my reimbursement?
For additional assistance or to file an HCFSA claim, please log in to your account.