Flexible Spending Arrangement (FSA)
COVID-19 FSA Plan Changes (temporary)
In late December 2020, the federal government passed COVID stimulus legislation that included several relief provisions for Flexible Spending Account (FSA) participants. The provisions are intended to help employees access unused FSA balances who made decisions to participate and contribute to a health care or dependent care FSA prior to 2020 but have been unable to utilize eligible services or care during the COVID pandemic.
Below is an outline of these temporary changes:
The Health Care Flexible Spending Arrangement (FSA) allows you to set aside pre-tax dollars to pay for your eligible out-of-pocket health care expenses. Eligible medical, vision and dental expenses such as deductibles, co-payments, co-insurance, prescribed over-the-counter drugs, eye glass hardware and other out of pocket expenses incurred by you or your eligible dependent may qualify.
The carryover feature allows participants to roll over up to $550 of unused Health Care FSA funds to use the subsequent plan year. Any Health Care FSA funds in excess of $550 will be forfeited.
Processing a Claim
The Health Care FSA is pre-funded, meaning you will have access to your full annual election amount at the beginning of the plan year, regardless of the amount you have contributed. The Navia Benefits debit card is loaded with the participant’s full election amount and pulls funds directly from their FSA account for eligible expenses, much like a debit card. Participants can also request reimbursement of out-of-pocket expenses through the Navia Online Claim Submission tool, the MyNavia App, or by submitting a Navia FSA claim form, with attached itemized documentation, to Navia Benefits by email, fax or mail.
The Day Care Flexible Spending Arrangement (FSA) allows employees to pay for out-of-pocket, work-related dependent day care costs with tax-free dollars. Eligible day care, preschool, before and after school care, and day camps (for children who live with the participant and are 12 years old or younger) and elder care (for a qualifying tax dependent who is physically or mentally incapable of self care) out-of-pocket expenses may qualify.
You must claim all elected funds by the end of the run-out period. After the run-out period is complete, unused Day Care FSA balances will be forfeited.
Processing a Claim
Since the Dependent Care FSA is not pre-funded, participants may only submit for reimbursement up to the amount they have contributed to their account. However, Navia will approve day care services up to one month in advance. For example, if it is currently the month of July, a participant could submit for day care services that will be incurred in the month of August. Participants can request reimbursement of out-of-pocket expenses through the Navia Online Claim Submission tool, the MyNavia App, or by submitting a Navia FSA claim form, with attached itemized documentation, to Navia Benefits by email, fax or mail.
Adjusting an FSA Account Mid-Year
Employees may be able to adjust their FSA account if they meet specific IRS requirements. The employee must have experienced an IRS defined change in status and the FSA adjustment must be consistent with the change in status. There are detailed IRS rules on when a change in election is deemed to be consistent with a change in status. The Benefits department reviews all changes to ensure compliance with IRS rules.
To request a mid-year adjustment to your FSA account, submit a Navia FSA Employee Change in Status form to the Risk Management - Benefits.
For more information regarding your FSA account and the claim process, please contact Navia Benefit Solutions. Use Employer Code: PCY.
|Examples of Life Event Changes||Process to Use|
|Add or remove dependent||Life Event Change|
|Termination or commencement of employment by spouse or dependent||Employment Change|
|Switching from / to part-time employment by employee, spouse, or dependent|
|Hours reduction, strike or lockout|