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 can then use these funds to pay for qualified health care expenses not covered by the plan.

Each benefit year, you decide if you would like to enroll in a HFSA and determine the amount you want to contribute, within the limit, on a pretax basis. During the benefit year, you file claims for eligible medical expenses, 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 account. The federal government imposes certain restrictions on HFSA plans to give you these pre-tax advantages, such as you cannot enroll in, cancel, or change your HFSA amount at any time during the year except during Open Enrollment.

NEW for 2021—Increased Annual Rollover Amount from $500 to $550!

You may carry forward up to $550 from year to year. Otherwise you must spend down the account for qualified expenses in each benefit year. You have until March 31 of the following year to file claims for the current benefit year.

2021 Health Flexible Spending Account Contribution Limits
Minimum Monthly Amount $25.00
Maximum Monthly Amount $225.00
Effective: Jan. 1 - Dec. 31, 2021

Health Flexible Spending Account (HFSA) claim form (PayFlex) [PDF 602K]

Streamlining

If you do not have any other health coverage, you can elect to have your HFSA set up to “streamline”. This means that any unpaid portion of a claim you incur during the plan year (deductible, your portion of the coinsurance, etc.) is directed 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.

Your Choice: Once a Year, Every Year!

A HFSA might be a great choice for you – but here are some things to keep in mind:

  • You cannot enroll in, cancel, or change your HFSA amount at any time during the year except during Open Enrollment or a qualifying status change.
  • You must elect these benefits each open enrollment period. Your HFSA does not automatically continue from one benefit year to the next.
  • The benefit year runs from January 1 to December 31. You must budget contributions carefully.
  • You may carry over up to $550 of unused funds in your HFSA to the next benefit year, but unused amounts over $550 are forfeit.
  • Any amount you carry over to the next year will be added to any HFSA contributions you choose to make in the new benefit year.
  • Services for eligible expenses must be received while you are covered by the plan—coverage stops during most periods of leave without pay (LWOP) (your coverage will not stop if you are on FMLA and are in LWOP status) 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.
  • Except for the $550 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.
Did you know you can use your HFSA for the following common items?

  • Allergy Medicine
  • Analgesics
  • Antibiotics
  • Birth control
  • Cold medicine
  • Feminine hygiene products- include, but are not limited to: sanitary napkins, pads, liners, tampons, cups, sponges.
  • Fever reducing medicine
  • Pain relievers
  • Sleep deprivation treatment
Visit payflex.com and find the entire list of eligible expenses categorized by eligible, eligible with a letter of medical necessity, and not eligible.