Flexible Spending Arrangements (FSAs)

What are FSAs?

FSAs allow you to set aside pretax money from your paycheck to pay for out-of-pocket health care expenses. Setting aside a portion of your pay with an FSA reduces your annual taxable income. Your election will be deducted from your paycheck pretax throughout the plan year, so you don't pay FICA (7.65%) or federal income tax (up to 37%) on your elected dollars. Listen to the Fund Your Future DRS podcast episode: Save on health care costs with FSA and DCAP to learn more about FSAs.

Two types of FSAs

The SEBB Program offers: an FSA and a Limited Purpose FSA. The FSA covers a wide range of health care expenses. The Limited Purpose FSA covers only dental and vision expenses and is intended for employees enrolled in UMP High Deductible.

What is an FSA?

The FSA allows you to pay for out-of-pocket health care costs like deductibles, copays, coinsurance, medications, menstrual care products, dental care, vision services, and more (see eligible expenses).

You can use your FSA to pay for expenses for you, your spouse, or your qualified tax dependents, even if they are not enrolled in your SEBB medical, dental, or vision plan.

What is a Limited Purpose FSA?

The Limited Purpose FSA allows you to pay for out-of-pocket dental and vision services like glasses, contact lenses and solution, dentures, dental copays, orthodontia, and more (see eligible expenses). You can use your Limited Purpose FSA to pay for dental and vision expenses for you, your spouse, or your qualified tax dependents, even if they are not enrolled in your SEBB medical, dental, or vision plan.

Am I eligible?

The FSA and Limited Purpose FSA are offered to school employees eligible for SEBB benefits. Generally, FSAs are available to school employees who are expected to work at least 630 hours during the school year.

How much can I contribute?

2025

• A minimum of $120
• Up to a maximum of $3,200

2024

• A minimum of $120
• Up to a maximum of $3,050

Why is the IRS maximum contribution limit different from what HCA adopts?

The maximum contribution limit is set by the IRS, and the amount is usually announced in late fall after HCA's annual open enrollment begins. Due to the timing of the IRS announcement, HCA adopts the increased maximum contribution limit for the following plan year.

How do I enroll?

During open enrollment

• Visit the Navia Benefit Solutions website. Or, download and print the Open Enrollment Form on Navia's website.

Reminder: You must enroll in a FSA for each plan year you want to participate because your enrollment does not automatically continue year to year. If you want to enroll, make sure to elect this benefit again during each open enrollment.

When you're first eligible

• Submit the Midyear Enrollment Form to your payroll or benefits office no later than 31 days after the date you become eligible for SEBB benefits.

If you have a special open enrollment event

• Submit the Change in Status Form to your payroll or benefits office no later than 60 days after you or an eligible family member has a qualifying event that creates a special open enrollment.

What is carryover?

If you have not spent all the funds in your FSA by December 31 – and you are still employed and didn't lose eligibility for the FSA – you may be able to take advantage of the carryover feature, where certain unspent funds may "carry over" into the following year without affecting annual maximums.

To carryover your unspent funds:

• You must enroll in either the FSA or Limited Purpose FSA for the following year, or
• Have at least $120 left in your account from the previous year.

How much can I carry over to the next plan year?

2025

Unused funds up to $660 will carryover to 2026. Due to IRS rules, any funds above $660 will be forfeited to HCA.

2024

Unused funds up to $640 will carryover to 2025. Any funds above $640 will be forfeited.

Real-world carryover examples

Less than $120 remaining

A subscriber has $100 left in their FSA on December 31 (less than the $120 minimum). If they enroll in an FSA, the $100 will carry over and be added to their FSA election for the next plan year.

If they enroll in a CDHP for the next plan year, they cannot enroll in an FSA. However, if they enroll in a Limited Purpose FSA, their remaining $100 will carry over and be added to their Limited Purpose FSA election for the next plan year.

If they do not enroll in an FSA for the next plan year, the $100 will be forfeited because it is below the $120 minimum.

Between $120 and $640 ($660 for 2025) remaining

A subscriber has $150 left in their FSA on December 31 (between the carryover minimum and maximum amounts). If they enroll in an FSA, the $150 will carry over and be added to their FSA election for the next plan year. If they do not enroll in an FSA, the $150 will still carry over to establish an FSA for their use in the next plan year.

If they enroll in a CDHP and a Limited Purpose FSA, the $150 will carry over and be added to their Limited Purpose FSA election for the next plan year.

If they do not enroll in an FSA, the $150 will still carry over to establish a Limited Purpose FSA for their use in the next plan year.

Over $640 ($660 for 2025) remaining

A subscriber has $670 left in their FSA on December 31 (over the $640 [$660] maximum that can be carried over). If they enroll in an FSA, $640 ($660) of the $670 will carry over and be added to their FSA election for the next plan year; the remaining $30 ($10) will be forfeited. If they do not enroll in an FSA, $640 ($660) will still carry over to establish an FSA for their use in the next plan year.

If they enroll in a CDHP and a Limited Purpose FSA, $640 (660) of the $670 will carry over and be added to their Limited Purpose FSA election for the next plan year; the remaining $30 ($10) will be forfeited.

If they do not enroll in an FSA, $640 ($660) will still carry over to establish a Limited Purpose FSA for their use in the next plan year.

How do I submit claims?

When you incur an eligible expense, you can submit a claim to request reimbursement using one of the following ways below. You also can sign up for a debit card.

• Online: Navia Benefit Solutions
• Navia Benefits Debit Card
• Email: Navia customer service
• Mobile App: download for iPhone or Android
• Phone: 425-452-3500 or toll-free 1-800-669-3539, Monday-Friday, 5 a.m. to 5 p.m. (Pacific)
• Fax: 425-451-7002 or toll-free 1-866-535-9227
• Mail: Navia Benefit Solutions, PO Box 53250, Bellevue, WA 98015-3250

When can I submit them?

You can start submitting claims for eligible expenses on or after the first day of your plan year, January 1. The full amount you set aside for your FSA contribution is available on January 1.

Are there deadlines?

Yes. You must incur all expenses by the end of the plan year, December 31, and submit all claims to Navia Benefit Solutions for reimbursement by March 31 the following year. If you are no longer employed or have retired and still have money left in your account, you can still submit claims for reimbursement until March 31, so long as the services took place while you were employed.

What happens to my funds when coverage ends?

When your SEBB insurance coverage ends – or you go on unpaid leave that is not approved under the Family and Medical Leave Act (FMLA) or military leave – you are no longer eligible to contribute to your FSA. Eligibility ends on the last day of the month you lose coverage or go on FMLA or military leave.

You will be able to claim expenses that happened only while you were employed, unless you are eligible to continue your FSA under SEBB Continuation Coverage. You must submit claims for reimbursement by March 31 the following year.

Transferring to another SEBB organization?

You can continue your FSA election if the time between employment is 30 days or less and within the current plan year.

Submit the School Employment Transfer Form to your new employer's payroll or benefits office no later than 31 days after your first day of work. If you end employment or retire during the year, submit the SEBB FSA Termination form to your payroll or benefits office.