Health Care Spending Account

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As health-care costs continue to increase, you can soften the impact on your wallet by enrolling in a health care spending account.  By saving on taxes, you can effectively reduce the cost of your eligible expenses.  A health care spending account can help you save on many products and services like:

• Medical, dental or vision deductibles and co-payments
• Eyeglasses, contact lenses and contact lens supplies
• Laser eye surgery (including LASIK)
• Orthodontia
• Prescription drugs
• Effective 1/1/2011 over the counter drugs were no longer an eligible purchase with a HCSA

How does it work?

Within 30 days of hire, or during Open Enrollment, you elect the amount you want to contribute to your health care spending account.  You may defer up to $5,000 annually in the health care spending account.  OneBeacon will then deduct the election amount in equal payments each pay period throughout the year.  When you incur eligible expenses, you will be reimbursed the full amount of the expense up to the annual election amount you have chosen.

Claims from BCBSMA for medical and dental, CVS/Caremark for pharmacy, and EyeMed for vision will automatically be adjudicated with ADP.  For eligible expenses outside of those three plans, submit eligible expenses to ADP.  The health care spending account has a "use it or lose it" provision, so plan carefully for your expenses.

With your health care spending account, you can submit claims for family members' expenses - even if they aren't enrolled in the OneBeacon medical or dental plans.  When you incur eligible expenses and submit them to ADP, you will be reimbursed the full amount of the expense up to the annual amount you have chosen.  You should log-in to your Flexdirect ADP account for a full listing of eligible and ineligible expenses. 

The Flexible Spending Account Card

You will receive your FSA Card automatically when you initially enroll in a Health Care Flexible Spending Account (HCFSA).  The card (good for 3 years) is a useful and easy-to-use tool, similar to a bank account debit card, that allows you to remove funds from your FSA with a simple swipe at a merchant terminal.  By using the card to purchase eligible expenses, you avoid paying for a purchase with money out of your pocket.

However, be sure to save your receipts in case you are asked to substantiate what you have automatically debited from your account.  Should a merchant not accept the FSA Card, you may pay for the eligible expense out-of-pocket and submit a claim for reimbursement.

The FSA Card may be used in medical and dental offices, hospitals, health clinics, pharmacies and online pharmacies to purchase the same eligible items and services for which you can submit paper based claims for reimbursement.