IQVIA Benefits Handbook
HOW FSAS WORK
If you participate in a FSA, you decide how much money to set aside from your paycheck to pay for eligible expenses for you and your dependents.
Separate Health Care FSA, Combination FSA or Dependent Care FSA recordkeeping accounts are set up in your name and your pre-tax contributions are credited to the accounts each pay period. As you pay eligible expenses through the account, you save money by using tax-free dollars.
The FSAs generally work in the same way:
1. You estimate your eligible health care and dependent day care expenses for the upcoming calendar year.
2. You decide how much to contribute to each account. Because of the "Use it or Lose it" rule, it's a good idea to be conservative in your estimates.
3. The company will deduct your contributions from your paycheck before federal, Social Security or Medicare and most state and local income taxes are calculated, and credit your account with those funds.
4. You can pay for eligible expenses with the FSA debit card, which automatically deducts funds from your FSA, with no claim forms to file. Be sure to keep all receipts. The FSAs and the FSA debit card are regulated by the IRS, so you may be required to substantiate your purchases. There are also automatic reimbursement options: the automatic orthodontia reimbursement option for the Health Care and Combination FSA and the automatic dependent care reimbursement option for the Dependent Care FSA.
5. If you can't use the FSA debit card or auto reimbursement to pay expenses, you can still use your FSA to pay for eligible expenses, but you will need to file claims. When you incur an eligible expense, you pay the provider and submit a claim form along with your receipts. Health Care and Combination FSA claims are reimbursed based on your annual contribution amount. Dependent Care claims are reimbursed based on your current account balance. You will be reimbursed by check or direct deposit with tax-free dollars.
"Use it or Lose it"
It is important to plan contributions to the FSAs carefully. In order to maintain a tax-free plan, the Internal Revenue Service (IRS) requires that if you do not use all of the money in your account(s) by the end of the year, it will be forfeited. As an active employee, you have until March 31 of the following year to submit claims incurred during the plan year for the Health Care FSA, Combination FSA and Dependent Care FSA. If you terminate employment during the plan year, you have 90 days after coverage ends to submit claims for the Health Care or Combination FSA. You may submit dependent care expenses incurred through the remainder of the calendar year.
How the FSA Debit Card Works
If you enroll in an FSA, you will receive a debit card (Benefits Debit Card) in the mail. No activation is required. With the swipe of your card at approved locations, you automatically withdraw funds from your Health Care FSA to pay for prescriptions and copays at the doctor's office, emergency room and more. Your debit card is valid for three years.
The FSA debit card will automatically debit your FSA account based on the guidelines established by the IRS. The card may not work for certain health care expenses, including some dental and vision expenses, and medical expenses if you're not enrolled in a IQVIA medical plan. If your card is denied, you can still use your FSA to pay for these expenses, but you will need to file a traditional claim.
Keep all receipts for your transactions. The FSAs and the debit card are regulated by the IRS, so you may be required to substantiate your purchases. You can check your FSA balance and transaction history any time at www.yourflexbenefits.mercermarketplace365.com. You can also obtain your account information by calling Mercer Marketplace at 866-268-0142.