A Flexible Spending Account (FSA) allows you to save money by using “before tax” dollars to pay for certain healthcare and dependent care expenses. To enroll, you elect an amount to be deducted pre-tax from your paycheck over 24 pay periods and deposited into your FSA. You may request reimbursement from the account when eligible expenses are incurred.
Medical Spending FSA
- Your Medical Spending FSA may be used to reimburse out-of-pocket medical expenses for you, your spouse, and your dependents.
- Eligible expenses include deductibles, coinsurance and prescriptions. Dental, vision and hearing expenses may also be reimbursed.
- The maximum annual Medical Spending FSA election is $2,700. The entire annual amount you elect may be used at any time during the plan year and is available January 1.
Dependent Care FSA (DCAP)
- The annual maximum contribution to a Dependent Care FSA is $5,000 or $2,500 if you are married and filing taxes separately.
- The Dependent Care FSA is used to reimburse you for expenses for children under age 13, or individuals unable to care for themselves. Unlike Medical Spending FSAs, Dependent Care FSAs may only reimburse expenses up to the amount you have contributed at any time during the plan year.
- Funds are available one business day after payroll deduction.
- Dependent Care FSA is for dependent daycare only.
| ||Medical Spending FSA||Dependent Care FSA|
|Elect up to:||$2,700 tax free||$5,000 tax free|
When you enroll in the Medical Spending or Limited Purpose FSA, you will receive a debit card from Cigna in the mail. The card will hold Medical Spending, Limited-Purpose, and/or HRA funds. It will NOT hold Dependent Care funds.
If you use the card at an Inventory Information Approval System (IIAS) merchant, the transaction will be approved at the point of sale. Generally, large pharmacies, grocery stores, and box stores (i.e.: Walgreens, Albertsons, Walmart) have IIAS capability.
If the expense will be considered for insurance and/or HRA reimbursement, try to wait until you receive the Explanation of Benefits (EOB) from the insurance company to be sure that the debit card transaction is for the correct out-of-pocket amount.
If the merchant does not accept the card, submit the expense through the Cigna website (www.mycigna.com) or by mail.
Medical Spending/Limited Purpose reimbursement requests, as well as debit card transaction documentation, can be sent electronically, by fax, or by mail to Cigna. Claims are normally reimbursed within a week of Cigna receiving the claim.
For dependent care, you must submit the expense through
www.mycigna.com or by mail. After submission, you will be asked which method of reimbursement you prefer (electronic transfer, check, etc.).