Health Flexible Spending Account

The Health Flexible Spending Account (HFSA) provides an opportunity for you to save by setting aside money for health care on a pre-tax basis. You decide the amount you want to contribute each month, up to the limit. During the benefit year, you file claims and are reimbursed with the tax-free dollars from your account. You benefit because you don’t pay taxes on the dollars you contribute to your account.

The Health Flexible Spending Account (HFSA) lets you pay for qualified health care expenses not covered by your insurance. You choose how much to contribute to the account.

2018 Health Flexible Spending Account Rates
Minimum Monthly Amount $20.00
Maximum Monthly Amount $220.00
Effective: Jan. 1 - Dec. 31, 2018
Here's How It Works

Each benefit year, you decide the amount you want to contribute, up to the limits, on a pretax basis. During the benefit year, you file claims and are reimbursed with tax-free dollars from the account. You benefit from reduced taxes because you don't pay taxes on the dollars you contribute to your accounts.

Streamlining

If you do not have any other health coverage, you can elect to have your HFSA set up with “streamlining”. What this does is sends the unpaid portion of your claim (deductible, your portion of the coinsurance, etc.) directly to your HFSA account for reimbursement.

You may not elect streamlining if you have other coverage that will coordinate with AlaskaCare.

Please refer to the AlaskaCare Employee Health Plan booklet, section 6.8 Submitting Claims for Reimbursement, for additional information.

Some Important Rules

The government imposes certain restrictions on HFSA plans to give you these pre-tax advantages.

  • You cannot enroll in, cancel or change your HFSA amount at any time during the year except during Open Enrollment.
  • You must elect these benefits each open enrollment period. They do not automatically continue from one benefit year to the next.
  • The upcoming benefit year runs from January 1 to December 31. You must budget contributions carefully. You may carry over up to $500 of unused funds in your HFSA to the next benefit year, but unused amounts over $500 are forfeit.
  • Services for eligible expenses must be received while you are covered by the plan—coverage stops during periods of leave without pay and at termination. Under HFSA, coverage also stops when you move to a bargaining unit which does not participate in the Select Benefits/AlaskaCare health plan. With the exception of the $500 carry over in the HFSA plan, services must be received prior to the end of the benefit year, December 31. Claims for the benefit year must be filed within 90 days of the end of the benefit year.
  • HFSAs allows for a maximum $500 carry-over of unused funds from one benefit year to the next. This amount will be in addition to any new benefit year amount you select as deductions in your pay.