Flexible Spending Accounts (FSAs)

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Flexible Spending Accounts (FSAs)

Using a Flexible Spending Account (FSA) is a smart way to pay for your out-of-pocket expenses related to healthcare and dependent care, and enjoy tax savings—with the convenience of a payment card. It’s a new day in healthcare with U.S. Bank. Throughout the year, there inevitably will be expenses you incur taking care of yourself and your family that insurance isn’t going to cover. By taking advantage of an FSA, you can actually reduce your taxable income, and reduce your outof-pocket expenses when you use your FSA to pay for those things you’d purchase anyway.

What is an FSA? An FSA is an employee benefit program that allows you to set aside money on a pre-tax basis to pay for qualified expenses for you and your eligible dependents. During benefit enrollment, you decide the annual amount you want to contribute, which effectively lowers your taxable income. FSA dollars can be used during the plan year to pay for services. Funds not used by the end of the plan year are lost. FSAs have a “use it or lose it” rule, meaning dollars do not carry over from year to year. The most common types of FSAs are: •

Medical Flexible Spending Account (Medical FSA): allows reimbursement of qualifying out-of-pocket medical expenses. For a list of eligible Medical FSA expenses, please consult our FSA and HSA Eligible Expenses List (see “Useful Links & Resources” on our website).

• Limited Purpose Medical Flexible Spending Account (LPFSA): coordinates with a qualified High Deductible Health Plan (HDHP) and Health Savings Account (HSA). Limited FSA only allows reimbursement for preventive care, vision and dental expenses. •

Dependent Care Reimbursement Account (DCRA): allows reimbursement of dependent care expenses (e.g., daycare) incurred by eligible dependents. To qualify, you and your spouse (if applicable) must be employed full time, or your spouse must be a full-time student.

Please check with your employer to see what plans are offered.

Healthcare Payment Solutions

Is an FSA right for me? An FSA is a great way to pay for expenses with pre-tax dollars. A Healthcare FSA could save you money if you or your dependents: • Have out-of-pocket expenses like co-pays, coinsurance, or deductibles for health, prescription, dental or vision plans; • Have a health condition that requires the purchase of prescription medications on an ongoing basis; • Wear glasses or contact lenses; or • Receive orthodontia treatments, such as braces, or have dental expenses not covered by your dental insurance. A Dependent Care FSA provides pre-tax reimbursement for out-of-pocket expenses. You can elect a Dependent Care FSA if you (and your spouse, if married) are working or in school, and: • Your dependent children under age 13 attend daycare, after-school care or summer day camp; or • You provide care for a person of any age whom you claim as a dependent on your federal income tax return, and who is mentally or physically incapable of caring for himself of herself.

The advantages of an FSA through U.S. Bank: • Your FSA funds are easy to access via your payment card when you need it most—at the clinic, pharmacy, dentist, etc. • When you use your payment card, there is no need to file claims or wait for reimbursement. • Additional cards may be requested online, at no charge, for your spouse or eligible dependents. • The interactive website lets you access your FSA anytime with a click of a mouse: – The website is personalized, secure and easy to use. View your account information or activity, check claims payment status, etc. – Easily file claims and upload receipts online when necessary. – Receive email alerts on your claim status or when you need to perform an action to process a claim. – Use the Expense Tracker to easily organize, manage and track your healthcare expenses. • Our customer service center’s highly trained healthcare account experts are available to respond to your plan questions. • Our Healthcare Toolbox provides smart, easy-to-use interactive tools to help manage your healthcare spending. • Manage your FSA on the go with the U.S. Bank Healthcare Mobile app

To learn more, go to www.mycdh.usbank.com or call 877-470-1771. Representatives are available Monday - Friday, 7:00 a.m. - 7:00 p.m. CT.

©2014 U.S. Bank National Association. All trademarks are the property of their respective owners. MMWR#41813

CFSA810 R-08/2014