The State will be adopting new rules for the FSA plans (medical and dependent care) in response to the provisions in the CARES Act.
The rollover amount will be increased to $550 for 2020 funds rolling into 2021.
The plan is waiving the need for a qualifying event to either enroll in the FSA or change an annual election for 2020. This is for both medical and dependent care accounts. Two important caveats to this:
- An employee cannot reduce their election to an amount lower than what they've already contributed (no refunds)
- An employee cannot change their election to an amount that is less than what has already been reimbursed/claimed
Additionally the CARES Act has permanently reinstated FSA coverage for thousands of over-the-counter drugs. Read the details here
If you wish to enroll or change your FSA election:
The Flexible Spending Account Plan allows you to have money deducted from your paycheck, on a pre-tax basis, which can then be used throughout the year to reimburse yourself for certain out-of-pocket health care and/or dependent care expenses. Because this money is taken from your salary before taxes are deducted, it allows you to pay these expenses tax-free. For 2020, you can have up to $2,750 deducted for your Health Care Account and/or $5,000 for your Dependent Care Account.
- Health Care Account – This account provides reimbursement for most health care expenses not covered by your insurance. Examples include: copayments, deductibles, dental expenses, and vision care expenses.
- Dependent Care Account – This account provides reimbursement for eligible dependent care expenses to pay for dependent care (child or elder) while you are working. Examples include: Daycare services, after school care, baby-sitting fees, adult day-services and preschool.
Employees elect the amount to be deducted from their bi-weekly paychecks. For 2019, the yearly maximum is $2,700 for Health and $5,000 for Dependent Care.
Employees may sign up within the first 60 days of employment or during the annual Open Enrollment period in November. In some circumstances, employees may be allowed to enroll during the year if they have a qualifying event (birth, marriage, etc.).
This plan requires employees to re-enroll on a yearly basis during the annual Open Enrollment period in November.
PO Box 6044
Columbia, MO 65205-6044