Flexible spending accounts (FSAs) allow participants to set aside pre-tax dollars for qualifying medical care expenses. Flexible spending accounts are administered by WageWorks.
How it works:
Employees may set aside money on a pre-tax basis to pay for qualified, uninsured medical expenses. By setting the money aside on a pre-tax basis, you are reducing your take-home pay and therefore reducing the taxes you pay. The funds cannot be used to pay insurance premiums. This account can be used to pay for medical and dental plan deductibles and copayments, uninsured medical expenses, and other eligible expenses, such as contact lenses, eyeglasses, and over-the-counter medicines/supplies.
With enrollment in the medical spending account, you will receive a WageWorks Visa card– this card will allow you to pay for eligible expenses directly from your account. Please keep all receipts, as you may be required to show them as proof of the eligibility of the expense. Please review the card use verification web tutorial, and the card use verification process frequently asked questions. Also, be sure to read the section below about WageWorks Visa Card Use.
You are eligible to spend the entire, annual election amount on eligible expenses on the effective date of your election (usually July 1, or your benefits effective date if a new hire).
Please see WageWorks' website for more information on eligible dependents and eligible expenses.
Annual Contributions
Under current Internal Revenue Service rules, the annual contribution limits are:
| FY2025 | FY2024 | Change | |
| Maximum salary deferral | $3,200 | $3,050 | +$150 |
How to File a Claim:
To file a claim for your medical spending account, you will need to submit a Medical Spending Account “ Pay Me Back” form.
WageWorks also now offers you the flexibility to file your "Pay Me Back" forms online. Simply follow these steps:
- Log in to your account at www.wageworks.com and click the Health Care tab.
- Select the online claim form.
- Fill in all the information requested on the form and submit it.
- Scan receipts, EOBs, and other supporting documentation.
- Attach supporting documentation to your claim by using the upload utility (or print the pre-populated online claim form and submit it along with your documentation via mail or fax to the address or fax number referenced on the form).
- To speed processing, remember to save receipts that show exactly what you paid for, the amount, and the date of service
In addition to filing for reimbursement of expenses, you may also use the WageWorks Visa card to directly debit your medical spending account funds. Please read the documentation about how the WageWorks Visa card works.
WageWorks Visa Card Use:
While your WageWorks Health Care Card and account offer a great deal of convenience, both are regulated by IRS rules that all participants are required to follow. In most instances, you will be able to use your card with little or no inconvenience. There are, however, situations where the card will be declined or you will be required to submit receipts and or other documentation to verify that the item or service purchased was eligible.
- Regardless of how you use the card, if you follow the below tips, you will be able to avoid and/or quickly resolve the most common problems.
-
1. Shop for eligible, over-the-counter (OTC) items, only if your physician has written you a prescription for that item. only at stores and pharmacies that have an IRS-approved inventory system in place. These systems ensure that the card will only be used to purchase eligible items. The most current list of approved stores can be found at https://sig-is.org/. You can still use your card at health care providers and specialty pharmacies, but in most instances, you will be required to submit documentation to verify the eligibility of the item or service purchased.
- Go to www.sig-is.org and choose "IIAS Merchants List" to review the most up-to-date list of approved merchants.
2. Log onto your account at www.wageworks.com regularly to see if you have any card transactions in need of verification. If you have a card transaction that requires verification, you will be notified immediately on the Welcome page upon login. Simply follow the instructions on the Card Use Verification form and your account should be restored to its good standing within five days of your submission.
3. Resolve all unverified card transactions as quickly as possible. All unverified card transactions must be resolved within 90 days of the purchase date. If not, you run the risk of having your card suspended. As an additional consequence, the amount of any outstanding transactions may be subtracted from subsequent Pay Me Back claims submitted for reimbursement.
4. Make sure your receipts (or documentation) contain the 5 required pieces of information. In order for the receipt (or any documentation) to be valid, it must include the five specific pieces of information required by the IRS:
- The patient name
- Provider
- Date of Service
- Type of Service
- The amount you were charged or your cost (e.g., your deductible or copay amount or the portion not covered by your insurance)
5. Always save your receipts. Regardless of whether we request a receipt or not, you are required by the IRS to retain every receipt for your tax records. That is why it is a good idea to keep a separate folder in your home records for your Health Care Card and account receipts.
For additional guidance and information on card use, please visit the Health Care Card Resource Center at www.wageworks.com/card.
Also, review the tutorial on the card use verification for more information on how the card use verification process works.
Additional Information:
- Tools to help you decide how much to elect:
-
Not sure how much to elect into your medical spending account? Try the calculators below to assist you:
- Contact WageWorks
-
To contact WageWorks directly, either log in to their website (when registering, use the last 4 digits of your Social Security Number as the "ID Code") or call them at 877-924-3967 (877-WageWorks).
- Enroll in FSA Direct Deposit
-
- Go to www.wageworks.com and log in (or register as a first-time user and log into the system).
- Click on "Edit My Profile" in the "Manage My Accounts" box.
- Scroll down and under "Reimbursements" select the button next to "Reimburse me by direct deposit to the account below".
- Enter your banking information from your check and select the type of account.
- Click the "Next" button at the bottom of the page. It's that easy!
- Plan Documentation
-
See the Plan Document for more detailed information about this plan.
HCFSA FAQs
- Can I invest the money in my HCFSA?
-
No.
- Can I roll my HCFSA over from year to year?
-
No, the HCFSA is a “use-it-or-lose-it” plan, but you have a grace period that allows you some extra time after June 30th to spend any remaining HCFSA funds.
- How long do I have to spend my HCFSA funds?
-
You will have the plan year (July 1 – June 30) plus a grace period through September 15 to incur charges for eligible medical expenses for your HCFSA.
Claims for any incurred charges during the plan year or grace period must be submitted to WageWorks no later than November 30th following the end of the plan year.
- Can I change my HCFSA amount after annual enrollment?
-
You are generally not permitted to change elections after annual enrollment unless you experience a QLE
- How long do I have to wait to use my HCFSA?
-
You can use your full elected annual amount on day one of the coverage.
For example, if you elect $1,000 during annual enrollment, the total will be evenly deducted from your paychecks but you may spend all $1,000 on July 1st.
If you are biweekly and get paid 26 (depending on the year it will be 27) times per year. Rice will deduct $38.46.
-
How do I access my HCFSA?
-
WageWorks will send you a debit card before the plan year start date of July 1st and your election amount will be loaded to that card as of the July 1st new plan year start date.
You may pay out-of-pocket and submit your receipts for eligible medical expenses to WageWorks for reimbursement. Please consider establishing a direct deposit of any reimbursements to receive your funds as quickly as possible.
-
Can I use my HCFSA for my eligible dependent’s medical expenses?
-
Yes, even if they are not covered under Rice’s medical plans.
- What happens if I leave Rice?
-
You will not be required to pay back any unfunded money that you have already spent.
Your contributions will cease and coverage ends at the end of the month you last work in. Please note, the card will shut off on your termination date. However, you may pay out of pocket until the end of the month you last worked and submit the claims you incurred through the end of the month of your termination date. Claims must be filed for reimbursement within 120 days of when coverage ends.
- What are qualified medical expenses?
-
The Internal Revenue Service (IRS) determines which expenses can be paid and reimbursed from an HCFSA some examples include:
- Medical plan deductible
- Dental treatments not covered by insurance
- Copays and coinsurance
- Prescription drug out-of-pocket costs
- Vision out-of-pocket expenses
Visit the WageWorks website for a full list of eligible medical expenses.
- How much does Rice contribute to my HCFSA?
-
HCFSAs are fully funded by the faculty and staff.