Announcement

  • EWSD will be transitioning from Future Planning Associates to DataPath on May 1, 2018 as our HRA/FSA Third Party Admnistrator. We are confident that DataPath is fully capable to administer our FSA and HRA plan as established, and they will serve as a key resource to help resolve existing problems that currently exist with Future Planning Associates.  

    Both Future Planning and DataPath Administrative Services operate on the same administrative platform, which will allow us to have a seamless migration of our plans to DataPath.  This means:

    • Employees will face no changes. They will retain the same debit card and same login ID/password to the www.myrsc.com website.
    • Historical claims data will be carried forward (which enables DataPath to continue to assist on claims incurred and processed prior to the transition date)

Flexible Spending Accounting (FSA)

  • Eligible employees may participate in a flexible spending account (FSA) benefit program for unreimbursed healthcare and child care expenses offered by the District through IRS Section 125 Regulation “Cafeteria Plan”, as allowed by law.  The plan year for the FSA runs fron July 1 through June 30.  The open enrollment period is May 1 - May 30 for a July 1 effective date.  If we do not receive your completed forms as outlined below during the open enrollment, you will not qualify for participation in the flexible spending account plan for the upcoming plan year beginning July through June 30.  

    In order to elect to participate in the flexible spending account, employees must complete and submit the following to Human Resources by the deadline above (or within 30 days of hire for new hires):

    • Flexible Benefits Plan Election of Benefits Form (including Other Terms and Conditions Statement on the back page).  Under “Number of pay periods in the plan” (#2), please indicate the following based on your employee group:
      • School-Year Support: 20 pays
      • 12-Month Employees: 26 pays
      • Teachers: 22 pays
    • Employee Authorization Agreement for Direct Deposit of FSA/HRA

    Frequently Asked Questions

    What is a health flexible spending account?

    A flexible spending account is an employer-sponsored benefit that allows you to set aside pre-tax dollars to pay for eligible dependent care expenses and/or health care expenses for you, your spouse, and your eligible dependents.

    With an FSA, the money you set aside to pay for health care and/or dependent care expenses come out of your salary before taxes are withheld. This reduces your taxable income, and consequently, your tax liability. You pay for your eligible expenses with tax-free money from your FSA.

    How does the FSA work?

    Here’s how flexible spending account work:

    • Estimate your eligible expenses for the upcoming plan year (health care and/or dependent care).
    • Determine how much you want to have set aside from your pay to go into your FSA to pay for your eligible expenses for the coming year (this amount is called your “election”).
    • The money you elect for your FSA will be automatically deducted from your paycheck on a pretax basis and credited to your FSA over the course of the year through payroll deduction.
    • When you have an eligible expense, you can submit a claim to be reimbursed from your FSA. (Certain claims are submitted automatically – read further for details).
    • For health care FSA claims, you can be reimbursed even if your FSA balance is not enough to cover your claim (up to your annual election amount).

    What is the FSA Plan Year?

    The FSA has a short plan year to start (January 1, 2018 to June 30, 2018) for those who are not already participating in a District FSA plan.  The new 12 month plan year shall begin July 1, 2018 through June 30, 2019. So, when you complete your election forms for this initial enrollment cycle, please remember that it is for a six month period only.

    Why is it a good idea to have a health FSA?

    Setting aside pre-tax dollars means you pay fewer taxes and increase your take-home pay by your tax savings. You save money on eligible expenses that you are paying for out of your pocket. The amount you save depends on your tax bracket.  For example, if you are in the 20 percent tax bracket, you can save $20 on every $100 spent on eligible health care expenses such as dental checkups, prescription eyeglasses, and medical deductibles and copayments. 

    The difference between opening an FSA versus claiming the same expense when filing your federal income taxes is that the Schedule A (IRS Form) requires a taxpayer to have 10% of their adjusted gross income (AGI) in health care expenses before they are able to deduct any health expenses.  Most families do not have enough health care expenses to ever take a deduction.

    Another benefit is that money in your health FSA is available to you on the first day of the plan year.  For example, if you elect to contribute $800 in a health FSA for the plan year, this $800 is available to you on the first day of the plan year. 

    Can I participate in the new FSA Plan if I’m currently enrolled in an FSA plan with the District?

    No.  If you are currently participating in a Flexible Spending Account plan with the District for the plan year that ends 6/30/18, you will not be eligible to participate in a new FSA plan for the shortened plan year beginning 1/1/18 through 6/30/18.  However, you will be eligible to participate in this plan effective 7/1/18 – with the new open enrollment period.

    What is the difference between the health care FSA and the dependent care FSA?

    The health care FSA and the dependent care FSA are completely separate accounts for different uses. Money from one FSA cannot be used for the other account’s purpose.

    • Sample health care FSA expenses: doctor’s office visits, physical exams, hospital care, prescriptions, etc.
    • Sample dependent care FSA expenses: licensed daycare, elder care, preschool programs, etc.

    What are eligible medical expenses?

    Your health care FSA can be used to pay for a variety of health care expenses incurred by you, your spouse and your dependents. Deductibles, copayments, dental care and vision care not otherwise covered by a health plan are all eligible health care expenses. You may also use your FSA funds to reimburse expenses under a spouse’s health plan for copayments, deductibles or coinsurance. Eligible health care expenses are outlined in IRS Publication 502.  Below are some other important limitations you should be aware of:

    • Expenses reimbursed under your health FSA cannot be reimbursed under any other plan or program. Only your out-of-pocket health care expenses are eligible for reimbursement. Plus, expenses reimbursed under a health FSA may not be deducted when you file your tax return.
    • FSAs have a start date and an end date, and the time in between is called the plan year. Expenses must be incurred during the FSA plan year. As noted in IRS guidelines, "Expenses are incurred when the employee (or the employee’s spouse or dependents) is provided with the medical care that gives rise to the medical expenses, and not when the employee is formally billed, charged for, or pays for the medical care.” This means the date of service must be within the current plan year and not when you pay for the service.  Please keep in mind that for this enrollment period the plan year has been shortened to six months (January 1, 2018 to June 30, 2018).
    • Long term care health insurance and health insurance premiums are not an eligible expense under a medical FSA.

    Who can I submit medical FSA claims for?

    You can submit medical FSA claims for family members that include your legally married spouse and dependents, or non-dependent children through age 26 – any one eligible for coverage under your medical insurance policy under the District’s plan.

    Are over-the-counter medicines eligible expenses?

    Yes, but they require a prescription. IRS rules state that over-the-counter (OTC) medicines and drugs are not eligible for reimbursement under your health FSA unless prescribed by a doctor (or another person who can issue a prescription) in the state where you purchase the OTC medicines. These rules do not apply to insulin (including OTC insulin). 

    Any claim you submit for reimbursement that has an OTC medicine expense must include a Request for Reimbursement Form and one of the following types of supporting documentation:

    • A written or electronic OTC prescription along with an itemized cash register receipt that includes the merchant name, name of the OTC medicine or drug, purchase date, and amount
    • A printed pharmacy statement or receipt from a pharmacy that includes the patient’s name, the Rx number, the date the prescription was filled, and the amount.  Allergy medication, aspirin and pain relievers, as well as first aid creams and ointments are examples of OTC medicines that require a prescription.

    What are eligible dependent care expenses?

    Eligible dependent care expenses include in-home childcare, payments to licensed day care facilities, before or after school programs, and elder care that are necessary for you, and if you are married, your spouse, to be gainfully employed.  You may be reimbursed for dependent care expenses incurred for any individual in your family who’s under age 13 and can be claimed as a dependent on your federal income tax return, or for a spouse or dependent who’s not able to care for him or herself. These expenses must be incurred, regardless of when billed or paid, while you’re working or looking for work. Unlike a health care FSA, you’re only able to receive a reimbursement from a dependent care FSA if sufficient funds have accumulated in your account from payroll deductions.

    If my child turns 13 this year, can I use the dependent care account for the whole year?

    No. You may only submit claims for reimbursement for expenses incurred before your child reaches the age of 13.

    How does participation in my employer’s dependent care FSA affect my ability to claim the dependent care tax credit on my federal income tax returns?

    You cannot claim a dependent care tax credit for amounts received under an employer’s FSA plan. You may wish to consult with a tax advisor to determine whether the FSA plan or the dependent care tax credit is more beneficial in your individual case. Generally, the higher your income, the more beneficial it is to participate in the dependent care FSA.

    I’m enrolled in a Health Savings Account (HSA). Can I still enroll in a health care FSA?

    If you contribute to an HSA, you may only participate in a limited-use FSA. A limited-use FSA allows reimbursement of dental and vision services only. 

    What expenses are not covered under a health FSA?

    Expenses that are not approved are called “ineligible expenses.” Ineligible health FSA expenses include:

    • Cosmetic surgery and procedures, including teeth whitening
    • Herbs, vitamins, and supplements used for general health
    • OTC medicines that you don’t have a prescription for (except insulin)
    • Insurance premiums
    • Family or marriage counseling
    • Personal use items such as toothpaste, shaving cream, and makeup
    • Prescription drugs imported from another country

    Also, as described in a previous question, you can’t use your FSA for:

    • Services that take place before or after your coverage period
    • Expenses that are reimbursed by another plan or program, including a health care plan

    These are only a few of the examples of expenses that aren’t covered by a health FSA.

    How am I reimbursed from my FSA?

    If you have an eligible medical expense, complete an online FSA claim form at myRSC.com and upload appropriate documentation to support the claim.  Instructions for accessing your myRSC online account are enclosed.  You can also submit claims using Health Care Expense Claim Form or a Dependent Day Care Expense Claim Form (enclosed) with appropriate documentation to support the claim and submitting the form and documentation to our Third Party Administrator (TPA). 

    How will I receive the FSA reimbursement?

    After your claim is approved, you will receive a check in the mail, or through direct deposit based on the direct deposit information you provided when you enrolled in the FSA.  A copy of the direct deposit is enclosed for your convenience. 

    What is acceptable documentation for FSA claims?

    When you send a manual FSA claim, please include documentation, such as:

    • For office visits: An explanation of benefits (EOB) that you received for the medical service for which you are filing a claim; OR, receipts containing the type of service or product provided, date the expense was incurred, name of employee of dependent for whom the service or product was provided, person or organization providing the service or product, and your portion of the expense.
    • For orthodontic expenses, payment plan for regular expenses.
    • For dependent care expenses, have your provider complete the Dependent Care section of the claim form.
    • For prescription drugs, a pharmacy statement or printout including the patient's name, the Rx number, the name of the drug, the date the prescription was filled, and the amount.
    • For over-the-counter medicines, a written or electronic OTC prescription along with an itemized cash register receipt that includes the merchant name, name of the OTC medicine or drug, purchase date, and amount; OR a printed pharmacy statement or receipt that includes the patient’s name, the Rx number, the date the prescription was filled, and the amount.

    In some cases, a Medical Determination Form completed by a doctor is required. Credit card receipts, canceled checks, and balance forward statements do not meet the requirements for acceptable documentation.

    Is there a limit to how much I can contribute to my health FSA?

    Yes. The FSA plan caps annual healthcare reimbursement at $2,500 per year for teachers, Administrators and all other exempt level staff.  The annual healthcare reimbursement cap is $800 for support staff. Dependent care reimbursement is capped at $5,000 per year for all employees.

    Can my spouse also contribute to an FSA?

    Yes, if your spouse is eligible to make contributions to a health FSA. Each spouse may contribute up to the maximum limit to their own health FSA. This applies even if both spouses participate in the same health FSA plan sponsored by the same employer.

    Can I use District FSA even if I am not enrolled in the District’s health plan?

    Yes, provided you meet the eligibility requirements for an FSA.

    What happens to the money in the FSA if I leave my employer?

    If you leave your place of employment during the plan year, you have a short period after termination to submit claims for reimbursement. Services and health care expenses must be incurred before your termination date unless you continue to contribute to your health care FSA account through COBRA (if eligible).

    How much money is available during the plan year?

    Your entire health FSA election is available on the first day of the plan year. If your FSA is active, your available funds decrease as your claims are paid. You can find out your available funds by logging in to your online account.

    How do I keep track of my account activity?

    Your FSA information is available any time day or night by logging in to your online myRSC account.

    Where can I get a reimbursement request form?

    Just log in to your online myRSC account to find it.  Claim forms will also be available on the District webpage for those who prefer to submit a paper claim.

    What happens if I have funds left in my health FSA at the end of the plan year?

    The IRS has a “use or lose” rule for FSAs. This rule states that you’ll lose any unused money still in your account at the end of the plan year.   However, for at least this first election period, carryover will be allowed up to $500.  Carryover funds must be used within the following plan year.  Any unused carryover funds will be forfeited and will no longer be available for your use.  The unused portion of your health FSA cannot be paid to you in cash or other benefits, and you can’t transfer money between FSAs. To reduce your risk of losing money at the end of the plan year, carefully estimate your expenses when choosing your annual election amount.

    What happens if I have funds left in my dependent FSA at the end of the plan year?

    Any money remaining in the dependent care FSA at the end of the plan year and not submitted with the claims run-out period (described below) will be forfeited.  Expenses must be incurred within the plan year.  Reimbursements from this account cannot exceed the current balance.  Reimbursements may only be for services already provided.

    What is a run-out period?

    It’s a set number of days after the plan year ends that allows you to submit claims for eligible expenses incurred during the plan year.  The District’s FSA plan allows for a 45-day run-out period.

    Can I change my election amount?

    Your election can’t be changed during the plan year unless you have a change in status or other qualified event. Status changes that permit you to change your election are defined under IRS tax code.  A summary of these changes are provided below:

    • Changes in marital status (e.g., marriage, divorce or annulment, legal separation, death of spouse)
    • Changes in the number of dependents (e.g., birth, adoption or placement for adoption, death of a dependent)
    • Changes in employment status that affects coverage eligibility (e.g., termination of employment, commencement of employment, full-time to part-time, part-time to full-time)
    • Changes in dependent’s eligibility under the District’s plan (e.g., lost or gained eligibility due to age, student status, marital status)
    • Changes in residence affecting eligibility
    • Certain court orders, Medicare or Medicaid

    If you experience a change in status and wish to revoke your election, please be sure to complete a Revocation of Benefit Election and Compensation Redirection Agreement (available on the District website) and submit to Sandy Emery.  This completed form must be received at least two weeks prior to the payroll date in which you wish to revoke your election to allow time for processing.

    What happens if I stop working for the District?

    If you stop working for the District or you lose your FSA eligibility, your plan participation and your pre-tax contributions will end automatically. Expenses for services you have after your termination date are not eligible for reimbursement.

    Please Note: You may be entitled to elect COBRA continuation coverage under the health FSA and receive reimbursement for qualified expenses incurred after your termination, but only if you continue to make the required FSA COBRA premium payment using your money after taxes have been taken out. However, you generally do not have the right to elect COBRA continuation coverage if the cost of COBRA continuation coverage for the remainder of the plan year equals or is more than the amount left in your FSA (excluding your carryover dollars, if applicable).

    Who do I contact with additional questions?

    If you have any questions related to this notice, please email Sandy Emery at semery@ewsd.org

    If you have questions related to the reimbursement process or claims, please contact Christine Leahy, Future Planning Associates, at (802) 857-0700 or email Christine@futureplanningassoc.com.


    The information contained herein is meant as a guide only.  If the information herein conflicts with federal or state laws or regulations, IRS rules, the collective bargaining agreement or the plan document, these other official sources shall govern.

FSA Forms and Documents