What is an FSA?
Healthcare (FSA)
Dependent Care (FSA)
What are the advantages of an FSA?
Who is eligible to set up an FSA?
How much should your employee contribute?
What if the employee doesnt use all of the money that was deposited in their FSAs by the end of the plan year?
When are healthcare expenses eligible for reimbursement?
When are the dependent care expenses eligible for reimbursement?
How will an HRA work with a FSA?

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What is an FSA?
With an FSA account, an employee may set aside pre-tax dollars for certain eligible medical and dependent care expenses. An FSA is funded by employee contributions deducted directly from their paycheck. Employers may also contribute funds to an employees account.

Healthcare (FSA)
Employees may set aside pretax funds in a healthcare account on an annual basis to pay qualified healthcare expenses. These funds can be used to pay medical, dental, and vision expenses not covered by insurance.

Dependent Care (FSA)
Employees may set aside pretax funds in a dependent care account to be used to pay qualified dependent care expenses (e.g., child care, elder care, etc.).

What are the advantages of an FSA?
An employers total payroll will be reduced by the amount contributed by employees to an FSA account. A smaller total payroll will allow an employer to save significantly on matching FICA tax contributions.

Who is eligible to set up an FSA?
FSAs can only be established by an employer. Employees and self-employed individuals may not establish FSAs.

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How much should your employee contribute?
An employer is responsible for determining the maximum amount an employee can contribute to an FSA. The employer may also make contributions to the employees FSA. They can also vary the maximum contribution to the dependent care FSA.

What if the money that was deposited in their FSAs was not used by the end of the plan year?
Contributions to an FSA that are not used to pay eligible expenses prior to the close of the plan year will be forfeited to the employer. An employer may elect to offer employees a two-and-one-half month grace period immediately following the end of a plan year; however, this grace period is optional.

When are healthcare expenses eligible for reimbursement?
Reimbursement for healthcare expenses may be paid up to the full amount of an employees elected plan year contributions when an FSA claim for an eligible expense is submitted, regardless of the amount of money that has been deposited into their account at the time of claim submission.

When are the dependent care expenses eligible for reimbursement?
Dependent care FSA reimbursement is available only up to the current balance available in the employees account at the time of claim submission. The remaining claim balance will be paid as future payroll contributions are deposited into their dependent care FSA.

How will an HRA work with a FSA?
Employees will not be reimbursed for the same qualified medical expense under both plans. An employer will determine if HRA or FSA funds will be used to pay a qualified medical expense. If the HRA funds are used to pay eligible medical expenses first and has limitations on allowable services, the HRA funds must be exhausted. The remaining applicable qualified medical expenses will then be paid using FSA funds. If the FSA funds are used to pay eligible medical expense first, any applicable qualified medical expense may apply to their available HRA funds once the employees FSA funds are exhausted.

Automatic reimbursement
Automatic reimbursement eliminates paperwork for employees. As expenses are processed by a Blue plan, FSA funds are distributed by automatic reimbursements through funds available in an FSA. This benefit is optional based on the employers selection.

What is a Blue Healthcare Bank debit card?
Employees can use the debit card to pay eligible expenses. Funds can be accessed at the employees convenience without having to complete and file a reimbursement request form and waiting for reimbursement. This option is determined by your employer-based specific plan.

Accessing your FSA Funds
The debit card can be used at any point of service location that accepts debit card payments. Funds can also be accessed by auto reimbursement or self reimbursement submitted for manual processing.

What happens if the employee debit card is lost of stolen?
If a debit card is lost or stolen, the employee should file a report as soon as possible by calling 1-800-663-BLUE. A replacement card will be sent to the employee.

How do the members submit a paper (manual) request for reimbursements through the mail?
Requests for reimbursement can be made using a Reimbursement Request Form. The employee simply completes and signs the form and attaches the appropriate documentation. A copy of the Explanation of Benefits or copies of receipts for prescriptions or non-covered health related expenses are acceptable.

Accessing the Employees Account Information
 

Employees may access their Blue Healthcare Bank FSA account information day or night. During the day, an employee may call Customer Service toll free at 1-800-663-BLUE, Monday Friday, from 7:00 am to 8:00 p.m., Central Time. Account information is also accessible at any time online at: www.bluehealthcarebank.com/member
Online information includes:

• The current available FSA balance
• Recent account transactions
• Year to Date account information

Monthly Statement
Blue Healthcare Bank provides monthly statements detailing the employees account balance and activity that will be mailed to the employees.

*The Bank will make reasonable efforts to update these FAQs as needed to reflect changes in federal regulations. However, these FAQs do not constitute legal advice and The Bank makes no warranties with respect to the same.

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