Benefits Healthcare FSA FAQ’s

A Healthcare Flexible Spending Account, or "FSA," is a pre-tax benefit account that you can use to pay for eligible medical, dental, and vision care expenses that aren’t covered by your health insurance plan. You decide how much to contribute to your Healthcare FSA each year, and funds are withdrawn automatically from each paycheck for deposit into your account before taxes are deducted. The total amount you elect to contribute to your Healthcare FSA each year is available on the first day of your plan year.

Generally, you need to spend the funds in your Healthcare FSA within the plan year. However, your employer may provide you a grace period of 2-½ months after the end of the plan year to spend funds left in your account. Or your employer may allow you to carry over up to $500 left in your account into the next plan year.

A lot of different kinds, you would be surprised. Your Healthcare FSA covers hundreds of eligible healthcare expenses, like co-payments for doctor visits, prescription drugs, and new eyeglasses or contact lenses.

Please keep in mind that IRS rules determine which expenses are eligible, and some expenses require a doctor’s note or prescription to be eligible for reimbursement under your Healthcare FSA.

Your Healthcare FSA does not cover these expenses: (A brief sample)

· Cosmetic surgery and procedures
· Dental whitening
· Expenses for healthcare services rendered outside the coverage period
· Expenses reimbursed by an insurance provider or another health plan
· Family or marriage counseling
· Herbs, vitamins, supplements, or other over-the- counter items used for general health
· Insurance premiums
· Personal use items (e.g., toothpaste, shaving cream, cosmetics)

Looking for a particular type of expense? Please check the list of eligible expenses or log into your Kazdon account for a comprehensive list of eligible expenses under your particular Healthcare FSA.

You fund your Healthcare FSA through your employer. During your company's Open Enrollment period, you tell your employer how much you would like to contribute to your account for the coming year. The maximum amount you can contribute is determined by the IRS. Your employer then deducts your contribution amount (in equal portions) from your paychecks throughout the plan year. And the good news - you don't have to wait for funds to build up in your Healthcare FSA! Your entire annual election amount is available to you on the first day of your plan year. If you are carrying funds over from the previous plan year (up to $500), that counts in addition to your maximum annual contribution.

There are several ways you can use the funds in your Healthcare FSA:

· You can use the Kazdon Healthcare Card associated with your Healthcare FSA to pay for eligible healthcare products and services.
· You can also be reimbursed for the eligible expenses you pay out of pocket.

It depends on the type of Healthcare FSA program your employer has in place. There are three scenarios for funds that are left unspent in your account at the end of the plan year:

· If you have a Healthcare FSA with Carryover, you can carry over up to the allowed annual IRS carry over limit into the next plan year.
· If you have a Healthcare FSA with Grace Period, you have up to 2½ months after the end of the plan year to use unspent funds before you lose them.
· If you have a standard Healthcare FSA, you lose any unspent funds at the end of the plan year.

Your employer decides on which type of FSA account they offer. To find out which scenario applies to you, log into your Kazdon account or ask your employer.

Unfortunately, we can't be too specific with this answer because it depends on your employer’s Healthcare FSA program. Often employers offer a period of time when you can still submit claims so you can spend down funds remaining in your Healthcare FSA. You may also be able to extend the period of time to use your Healthcare FSA funds if you elect COBRA after you leave your job. But please keep in mind that you need to incur all eligible expenses before your last day of work. We recommend asking your employer about your options.

Sorry, you can only change the amount you contribute to your Healthcare FSA if you meet one of these special circumstances, which are determined by the IRS:

· A change in marital status (such as marriage, divorce, or death of your spouse)
· A change in the number of your dependents (such as the birth or adoption of a child, or death of a dependent)
· A change in employment status of you, your spouse, or your dependent
· An event that causes your dependent to satisfy or cease to satisfy an eligibility requirement for a particular benefit
· A change in residence of you, your spouse, or your dependent
· A change in cost in coverage

If you believe you qualify for a change of your election, please contact your employer. To make sure you’re contributing the right amount to your Healthcare FSA—neither too much nor too little—we recommend that you carefully estimate your healthcare expenses prior to your company’s next Open Enrollment period, at which time you can adjust your election amount for the next plan year.

Sorry, you can only change your election if you meet any of these special circumstances, which are determined by the IRS:

· A change in marital status (such as marriage, divorce or death of your spouse)
· A change in the number of your dependents (such as birth or adoption of a child, or death of a dependent)
· A change in employment status of you, your spouse, or dependent
· An event that causes your dependent to satisfy or cease to satisfy an eligibility requirement for a particular benefit
· A change in residence of you, your spouse, or dependent
· A change in cost in coverage

If you believe you qualify for a change of your election, please contact your employer. And if your employer offers carryover, don't forget you can carry over up to $500 of unused funds into the next plan year, so you won’t lose them, even if you don’t spend them in the first year.

Sorry, your domestic partner’s medical expenses cannot be reimbursed under your Healthcare FSA, according to current IRS Regulations. You must be legally married to use your Healthcare FSA to pay for your spouse’s eligible healthcare expenses.

A Letter of Medical Necessity is the same as a Doctor’s Statement. It's a letter written by your doctor, verifying that the medication you are buying with your Healthcare FSA is for a diagnosis, treatment, or prevention of a disease. This letter is required by the IRS for certain eligible expenses. Review the list of eligible expenses to see if you need a Letter of Medical Necessity for a particular type of expense. Download the Letter of Medical Necessity form.

A Doctor’s Statement is the same as Letter of Medical Necessity. It's a letter written by your doctor, verifying that the medication you are buying with your Healthcare FSA is for a diagnosis, treatment, or prevention of a disease. This statement is required by the IRS for certain eligible expenses. Review the list of eligible expenses to see if you need a Letter of Medical Necessity for a particular type of expense. Download the Letter of Medical Necessity form.

No. Although both are Flexible Spending Accounts, a Healthcare FSA is very different from a Dependent Care FSA. A Healthcare FSA is to help you pay for healthcare expenses for you and your dependents. A Dependent Care FSA is to help you pay for childcare and elder care expenses so you can continue to work.

A Healthcare FSA with Carryover is a type of Healthcare FSA that may be offered by your employer. With this type of Healthcare FSA, you can carry over up to the allowed annual IRS carry over limit remaining in your account from one plan year to the next. To find out if you have a Healthcare FSA with Carryover, log into your Kazdon account or ask your employer. Browse the Healthcare FSA with Carryover FAQs for more information.

A run-out period is a timeframe in the new plan year during which you can file claims for expenses incurred in the previous plan year. This timeframe is established by your employer—not the IRS. While timeframes vary from employer to employer, a 90-day run-out period is common. If your plan year ends on December 31, and you have a 90-day run-out period, you have until March 31 of the following plan year to use money left in your Healthcare FSA. 

To find out if you have a run-out period associated with your Healthcare FSA, log into your Kazdon account or ask your employer.

A grace period is a timeframe in the new plan year during which you can incur new expenses and file claims. This timeframe, established by your employer, is up to 2½ months after the end of the plan year. If your plan year ends on December 31, and you have a grace period, you have until March 15 to incur new expenses and use money left in your Healthcare FSA to pay them. 

To find out if you have a grace period associated with your Healthcare FSA, log into your Kazdon account or ask your employer.

If your Healthcare FSA offers both a run-out and grace period, you may incur additional new expenses in the new plan year through the end of your grace period. But make sure you file claims for these expenses by the end of your run-out period. 

To find out if you have both a run-out and grace period associated with your Healthcare FSA, log into your Kazdon account or ask your employer.

There are two ways to submit a receipt for reimbursement:

· Through the Kazdon mobile app. Use your mobile device to snap a photo of your receipts and submit them for reimbursement.
· Though your Kazdon account. Log into your account, upload a digital image of your receipt, and submit your claim.

Carryover is an option for Healthcare FSAs that became available in 2013. The carryover option lets you carry over up to the allowed annual IRS carry over limit remaining in your account from one plan year to the next. You don’t have to worry about losing money left unspent in your account at the end of the plan year, or the end of a run-out or grace period. A Healthcare FSA with Carryover minimizes your “use it or lose it” risk. 

To find out if you have a Healthcare FSA with Carryover, log into your Kazdon account or ask your employer. Browse the Healthcare FSA with Carryover FAQs below for more information.

FSAStore.com is the only one-stop online shop stocked exclusively with Healthcare FSA-eligible products and services. Kazdon has partnered with FSAStore.com to make it even easier for you to use your Kazdon Healthcare FSA dollars—and get the best value from each dollar spent. Every item for sale at FSAStore.com is eligible for Healthcare FSA reimbursement—and there are more than 4,000 eligible products to choose from.

Yes! When you use your Kazdon Healthcare Card to buy products and services from FSAStore.com, your card transactions are automatically verified—no more submitting receipts! And all FSAStore.com items are guaranteed to be eligible for reimbursement under your Kazdon Healthcare FSA. Keep in mind that FSAStore.com items with an “Rx” icon require a prescription from your doctor to be eligible for Healthcare FSA reimbursement. But FSAStore.com makes it really easy—they’ll submit prescription requests to your healthcare provider on your behalf so you can get reimbursed quickly.

Yes! FSAStore.com items with a “FSA-OK” icon are eligible without a prescription. And items with a “FSA-Rx” icon are eligible for reimbursement with a prescription from your doctor.

If you use your Kazdon Healthcare Card to pay for FSAStore.com items, then no, you typically don’t have to submit receipts to verify the eligibility of your purchases. FSAStore.com is a certified IIAS merchant, and Kazdon can verify the eligibility of your purchase without needing additional documentation in most cases. Keep in mind that if you use another form of payment to pay for FSAStore.com items and submit a claim for reimbursement, you need to submit a receipt to verify the eligibility of your purchase. We recommend that you always keep receipts in the event that information needs to be verified.

No. Kazdon does not share any of your information with FSAStore.com.

Refer to your coverage period shown on your dashboard. To be eligible for payment the date of service must fall within your coverage period.