Important Updates Regarding Flexible Spending Accounts

Due to the COVID-19 situation, if you have flexible spending accounts (FSAs) for the 2019 and/or 2020 plan years, there are important updates regarding FSAs you need to be aware of.

Claims deadline extended

  • The date for submitting claims for the 2019 plan year has been extended from April 30, 2020 to December 31, 2020.
  • Please note: you still must have incurred claims prior to March 15, 2020; this extension only applies to submitting claims for eligible expenses incurred from 1/1/2019 – 3/15/2020.

Expanded eligibility list for Health Care FSAs

  • If you have a Health Care FSA for the 2020 plan year, the IRS has expanded the list of eligible items you can use this account for. This includes items such as over-the-counter drugs without a doctor’s prescription.
  • Review the full list of eligible items on the HealthEquity/WageWorks website and don’t forget to visit the FSA Store.

Dependent Care FSA options

If you have a Dependent Care FSA for the 2020 plan year, you have several options for your account due to daycare being closed and/or summer camps being cancelled. If you relate to one of the scenarios below, follow this process for completing the Offline Enrollment/Change Form :

Process to Submit Changes to Dependent Care FSA

  1. Complete the  Offline Enrollment/Change Form  on the HR website.
  2. Select "Change in Childcare" as the reason for completing the form.
  3. In the "Event Date" box, enter the date in which you were notified of the change or the date in which the change occurred.
  4. Submit the form to MSU HR within 30 days of the Event Date (see instructions on the form for further submission details).
  5. Important note : We recently received a number of questions and further clarification of IRS regulations, which resulted in an update to the answer for Scenario Example 1 below. If you have already submitted a form, MSU HR will contact you if we need to verify any information given the updates to Scenario Example 1 below.  If you have specific questions or concerns related to a form already submitted, please email  AVPHR.Benefit.Admin1@msu.edu

Scenario Examples for Dependent Care FSA:

  • Scenario Example 1: My children are school aged and participate in summer camps. I have elected $1500 to cover expenses for the year. I have contributed $375 to date, but I have incurred $0 to date. I have been notified that these summer camps have been cancelled. I no longer need any amount for Dependent Care FSA.

    Answer 1 (UPDATED 4-29-2020) : This situation would be considered a qualifying life event (change in childcare). You should complete and submit the  Offline Enrollment/Change Form  on the HR website. In this instance, you would input $375 for the Dependent Care FSA amount and select "Decrease Contribution" under the FSA section of the form. This will recalculate the amount you have elected for coverage to $375 from $1500 and stop further contributions.  Unfortunately, the IRS does not permit a refund of pre-tax dollars that are contributed and available to the member.  The amount of $375 that you’ve already contributed will be available to you to use for any qualified daycare expenses incurred for the 2020 FSA plan year (including the grace period). If the federal government decides to change this IRS regulation due to these unprecedented times, we will reach out to inform you of this update.

  • Scenario Example 2: I have a child in daycare and our daycare is currently closed.  I have elected $5000 to cover expenses for the year. I have incurred $3200 to date and I have contributed $1250 to date. I expect that my child will not be returning to daycare since they will start kindergarten in the fall and they are home with me during the summer. I no longer need $5000 to cover expenses for the year, just the $3200 I’ve already incurred. 

    Answer 2: This situation would be considered a qualifying life event (change in childcare). You should complete and submit the Offline Enrollment/Change Form on the HR website. In this instance, you would put the amount of incurred expenses of $3200 in the Amount field and select "Decrease Contribution" under the FSA section of the form. This will recalculate the amount you have elected for coverage to $3200 from $5000. Deductions will continue but the amount deducted will be lower due to recalculating the new amount needed for the remainder of pay periods in the calendar year.

  • Scenario Example 3: I have a child enrolled in before and after school care. I have elected $1200 to cover expenses for the year. I have incurred $650 to date and I have contributed $500 to date. Due to school being closed, I expect that I will not need before and after care until fall which will reduce my total costs by $250. This means I only need to elect $950 for the year instead of $1200. 

    Answer 3: This situation would be considered a qualifying life event (change in childcare). You should complete and submit the Offline Enrollment/Change Form on the HR website and select “Decrease Contribution” as the reason for completing the form. In this instance, you would put the amount of expected incurred expenses of $950 in the Amount field and select Enroll/Change under the FSA section of the form. This will recalculate the amount you have elected for coverage to $950 from $1200. Deductions will continue but the amount deducted will be lower due to recalculating the new amount needed for the remainder of pay periods in the calendar year.

Submitting claims

Please note: MSU’s flexible spending account (FSA) plan administrator, WageWorks, was recently acquired by HealthEquity. This means you will begin to see co-branding between WageWorks and HealthEquity as these companies join. No action is required from FSA participants during this transition and you can continue to use your FSA without disruption. Learn more about this transition.

There are several options to help you manage your FSA and submit claims. You can download the WageWorks EZ Receipts app, access your account on the HealthEquity/WageWorks website, or submit a claim via fax or mail using the Health Care FSA Reimbursement Form or Dependent Care FSA Reimbursement Form.

Questions

If you have questions regarding these updates, contact HealthEquity/WageWorks at 877-924-3967.