Health Care FSA
The Health Care Flexible Spending Account (HCFSA) administered by HealthEquity provides you with a way to pay for eligible health care expenses with pre-tax dollars. See below for important information on the “use it or lose it” rule.
In order to contribute to a Health Care FSA, you must enroll within 31 days of your date of hire. To continue the FSA in subsequent years, you must actively enroll each year during the Annual Enrollment period.
A Health Care FSA pays for qualified health care expenses incurred by you and/or your eligible tax dependents that are not covered or reimbursed by your health insurance plan (e.g. copays, coinsurance, etc.). If you enroll in a 2022 FSA, only qualified expenses incurred between January 1, 2022 and December 31, 2022 will be eligible for reimbursement. Claims must be submitted to HealthEquity by March 31, 2023.
The maximum amount you can contribute to a Health Care FSA in 2022 is $2,850.
Health Care FSAs are ordinarily subject to an IRS “use it or lose it” rule that permits a maximum of $550 unused HCFSA funds to be carried over into the following plan year. The Consolidated Appropriations Act allows for all unused HCFSA funds from plan years 2021 to automatically carry over to the following plan year. Even if you do not re-enroll in a HCFSA for 2022, you will still be able to use the funds remaining in your account from 2021. Carryover funds from 2021 will be posted to participant accounts on or about April 15, 2022. HCFSA elections for 2022 will be subject to the IRS "use it or lose it" rule.
Reimbursement Options through HealthEquity
If you enroll in a Health Care FSA, you will be issued a HealthEquity debit card that may be used instead of cash or credit at health care providers and pharmacies for eligible services, goods, and prescriptions. Payment comes from your Health Care FSA; in most cases, you will not need to submit a claim or wait for reimbursement.
Through HealthEquity’s “Pay My Provider” option, you may choose to have HealthEquity pay a provider directly, or you may choose to submit a claim online through HealthEquity’s “Pay Me Back” feature.
For more information regarding tools and resources available to manage your FSA, visit the HealthEquity website.
Note about Health Care FSAs and HDHP with HSA Plans
Participants may enroll in either the Health Care FSA or the Health Savings Account (HSA); per Federal law, you may not enroll in both accounts in one plan year. Additionally, participants in the HDHP with HSA may not elect the Health Care FSA; the HSA is designed to reimburse you for all eligible, out-of-pocket health care expenses.
First make sure that you or your provider submits the expense to any benefit plan in which you are covered for the same services. As a new hire or first-time participant in the Health Care FSA, your account is set to reimburse you automatically for eligible expenses using HealthEquity’s Automatic Health Plan Claim (AHPC) feature. You may use the AHPC feature as long as you do not activate your HealthEquity debit card; activating the card will turn the auto-pay feature off.
Automatic Health Plan Claim (AHPC)
When you visit a health care provider such as a doctor or dentist and are enrolled in one of the NYU medical plans, the NYU Dental Plan, and/or the NYU Vision Plan, your insurance carrier provides the amount of the transaction not covered by the health plan to HealthEquity. The amount not covered represents the "out-of-pocket" cost for which your FSA can be used. A payment will be made directly to you from your FSA as long as the claim is filed and processed by the claims administrator by March 31 of the following calendar-year deadline.
Use Your HealthEquity Health Care Card
You may use your Card instead of cash or credit at health care providers and pharmacies for eligible services, goods, and prescriptions. You can also use the Card at general merchants and through stores that have an industry standard (IIAS) check-out system that can automatically verify if the item is eligible for purchase with your account. If HealthEquity is unable to determine that your Card was used to pay for eligible health care products and services, you will be contacted with instructions on how to submit verification of the expense.