Flexible Spending Account (FSA) Program

For State Employees Only

The Flexible Spending Accounts Program (FSA) is an Internal Revenue Code, Section 125 plan offered by the State of Kansas. This program allows for the dollars you spend on certain expenses incurred throughout the year to be exempt from taxes. The Flexible Spending Accounts Program is comprised of three separate benefits.

Pretax Premium Option

This option allows the member to pay for the cost of member sponsored health plan premiums on a pretax basis (elected with health plan enrollment).

Please review the tabs below to learn more.

Tax Savings

Payment on a pretax basis means that the member enters into an agreement with the State of Kansas to reduce their salary by the cost of Health Plan coverage or by the amounts elected for either of the flexible spending accounts. Since the member's salary has been reduced, the employee does not pay federal or state income taxes or social security taxes on these amounts. As a result, the employee's take home pay will increase by the amount they don't pay in taxes for the pretax benefits selected.

Whose Expenses Qualify for these Plans?

Since these plans are authorized by the Internal Revenue Code, medical expenses of any family member who is a dependent for tax purposes qualify for the tax savings under the FSA even if they are not covered under one of the health/dental plans offered by the State. (There are age restrictions and custody restrictions for the Dependent Care FSA.)

Initial Enrollment

All benefits eligible employees may elect to participate in the Flexible Spending Accounts even if they do not enroll in Group Health Insurance coverage.

The initial enrollment period for FSAs is limited. Employees should submit a completed Enrollment Form to their Agency Human Resources Office within 31 days of their date of hire or date of new benefits eligibility. If forms are not submitted to the Agency Human Resources Office within the designated time frames, the employee will not be allowed to enroll until the next open enrollment period unless they experience a mid-year qualifying event for FSAs. Effective date of coverage is the first day of the month following completion of a 60-day waiting period. The waiting period begins with the first day of work for the State of Kansas in a benefits eligible position. Time spent in a benefits ineligible position will be applied to the 60-day waiting period if there is not a break in service of more than three days.

Annual Open Enrollment Period

All members who elect to participate in either of the Flexible Spending Accounts for a new plan year should plan to enroll through the State Employees Self-Service Center website during Open Enrollment which begins on the first day of October and ends on October 31st each year.

Open Enrollment is your once-a-year opportunity to make changes to your flexible spending accounts.

Employees who want to participate in either the Health Care or the Dependent Care FSA must enroll during Open Enrollment regardless of current status. An employee who enrolls during the Open Enrollment period will have flexible spending account coverage effective the first day of the new plan year.

How Much to Deposit - Use it or Lose it

During calendar year 2010, employees can elect a semi-monthly contribution into a health care or dependent care flexible spending account.

The minimum and maximum range amounts to deposit per semi-monthly paycheck are:

Use it or Lose it:

It is important that you calculate the right amount to contribute to your FSA account. IRS regulations state that funds remaining in your account after the end of the plan year will be forfeited.

Mid-Year Changes

Because FSAs are an IRC Section 125 plan, there are some restrictions imposed by the IRS regarding changes in coverage election during the year. A participating employee cannot change their Group Health Insurance pretax coverage level or the amount of money being placed in the flexible spending accounts until the beginning of the next plan year unless they experience a qualifying status event. All changes must be requested within 31 calendar days of the family status event and must also include written documentation of the event. In addition, the requested change must be consistent with the event. The effective date of an approved change will be the first of the month following the approval of the change, not the first of the month following the date of the Qualifying Event.

Administration and Claims Reimbursement

Claims may be submitted by mail or fax to the Administrator, ASI. For information regarding claims processing, forms, individual account numbers and other helpful information, visit http://www.asiflex.com.

Over the Counter (OTC) Drug and Medicine

Some over the counter drugs and medicines may now be reimbursable. For more information on Over the Counter (OTC) drugs and medicines or other qualifying expenses, visit the ASI website at: Over-The-Counter Drug and Medicine Information

Helpful Links

ASI
http://www.asiflex.com