Navia Benefits Solutions is the third-party administrator for the flexible spending accounts. For details about the FSA plans and how they work, view the Navia FSA Enrollment Toolkit, Flexible Spending Account Features, Frequently Asked Questions (FAQs) and How FSA Works video (8 minutes). You may also contact the Office of Group Insurance with questions.
For a list of eligible expenses, visit the Navia Benefits Solutions website.
Due to the pandemic and delayed medical services, the IRS has released guidance on additional flexibility for FSA plans that includes:
- All unused HCFSA funds will carryover from FY20 to FY21
- All FY20 DCFSA dollars will be allowed a grace period through June 30, 2021
- FY21 DCFSA dollars will be subject to the usual 2.5 month grace period
- One-time, mid-year, enrollment/disenrollment/increase/decrease with no qualifying life event. Last day to submit updated enrollment forms for this change is April 30, 2021 to ensure they are applied to any remaining pay periods in this plan year. All increases are subject to per pay period maximums on a prospective basis.
- Terminated employees can still use the FSA funds, they had previously contributed, through the end of FY21 (Debit cards will not work for terminated employees. Claims will have to be submitted via the portal or mail.)
- Over-the-Counter products and menstrual care products will continue to be eligible expenses
Flexible Spending Account Features
|Account||Description||FY2022 Maximum Contribution per plan year|
|Medical Reimbursement Account||Reimburses out-of-pocket health care costs not covered by any other plan.||$2,750|
|Dependent Day Care Account||Reimburses the cost of dependant day care necessary for you and your spouse to work or attend school full-time.||$7,746|
Flex Spending FAQs
Employees can enroll in either or both of the Health Care Flexible Spending Account (HCFSA) and/or Day Care Flexible Spending Account (DCFSA). Dollars deposited in these accounts are kept separate and cannot be transferred from one account to the other. Both accounts are administered by Navia Benefits Solutions and if the participating employee registers on the Navia website they can track the activity of their account online.
Once a FSA account has been opened, the employee is committed to that decision for the plan year. The only exception is when the employee has an IRS qualified Change in Status or Life Event unless additional flexibility is allowed by the IRS due to a national emergency.
- Estimate your eligible expenses for the upcoming plan year (health care and/or day care).
- Determine how much you want to have set aside from your pay to go into our FSA to pay for your eligible expenses for the coming plan year (this amount is called your “election”).
- The money you elect for your FSA will be automatically deducted from your paycheck on a pre-tax basis and credited to your FSA.
- When you have an eligible expense, you can submit a claim to be reimbursed from your FSA. Your full amount of your Health Care FSA annual election will be available upon enrollment; however, Day Care elections are only available for reimbursement as the account is funded throughout the year.
If your agency processes payroll on the State’s semi-monthly basis, you will have 26 payroll cycles in Fiscal Year 2020 (July 1, 2020 – June 30, 2021), bi-weekly payroll (24 payroll cycles) or monthly payroll (12 payroll cycles).
Your annual election will include a $2.70 administration fee which will be deducted from your election balance each month.
If your agency processes payroll on a different schedule, consult your agency’s human resource office for payroll schedules and maximum election amounts.
You must provide a valid email address to use the card.
The cards are valid for 3 year periods; if you’ve previously received a card then it will be reloaded with your new election.
- The grace period allows you to incur Day Care FSA expenses against the prior plan year through September 15th after the plan year ends; unless otherwise allowed by the IRS. Day Care FSA expenses incurred after the end of the Grace Period are not eligible for reimbursement.
Health Care FSA Roll Over
- Unused Health Care FSA balances up to $550 will be rolled over to the subsequent plan year. Any Health Care FSA funds in excess of $550 will be forfeited.
- When an employee has not elected to contribute new funds to the FSA in the coming plan year, accounts with a rollover balance, up to a maximum of $550, will continue to be accessed the monthly administrative fee, but the employee does not have to re-enroll in the FSA to continue to utilize the remaining funds.
- if you adopt a baby, you may want to increase your HCFSA or DCFSA elections because of added medical expenses and/or daycare costs you may incur for this adopted child. However, in general, you could not decrease your DCFSA elections for that Life Event.
- if your spouse decides to stay home with your child and you no longer have eligible daycare costs, you may wish to decrease your DCFSA election. In this case the Change in Status would be a change in cost or coverage of daycare.
PPE purchases are now FSA eligible expenses
A new IRS notice just made COVID-related personal protective equipment (PPE) like hand sanitizer and face masks FSA eligible expenses. This change applies to PPE purchases back to January 1, 2020. This means you can stock up on face masks and hand sanitizer tax-free! And if you have receipts for past covid-related PPE purchases since January 2020, you can submit those for reimbursement as well.
In a time when every little bit helps, this new rule offers additional financial support by covering products that keep us safe and healthy.
A great option for members wanting to spend down the balances in their Medical FSA accounts is to check out the FSAstore on the Navia member portal. Visit Navia at https://idaho.naviabenefits.com to check out the selection of thousands of FSA-eligible items.
FSA ‘How to’ Video