As OneBridge Benefits plans to roll out its latest product offering for benefits account management, we wanted to lay the educational groundwork. Currently, our proprietary software helps streamline the administration of Funded Health Reimbursement Accounts (HRAs). In the near future, our software will also be able to offer a better experience for participants who have a Flexible Spending Account (FSA). This details the ins and outs of an FSA.
Similar to an HRA, an FSA is a tax-exempt account used to pay for out-of-pocket medical-related expenses. These types of accounts do not need to be tied to a high deductible health plan, but they do have a maximum contribution limit.
Contributing to an FSA
When a participant enrolls in an FSA plan offered by their employer, they determine how much to contribute to the account in a year. Monthly installments are withdrawn from the participant’s paycheck (before taxes), decreasing overall taxable income and increasing spendable income. At the start of the FSA plan year, the entire balance becomes available, even though your payroll withholdings occur throughout the year. These accounts do have a cap however, with the contribution limit for FSAs in 2018 set at $2,650.
When a participant pays for a qualified medical expense out-of-pocket, they can easily file for reimbursement through the OneBridge software platform or mobile app. A full rundown on how claims processing works can be found here. And soon, participants can use the same streamlined process when enrolled in an FSA. The OneBridge Benefits card will also be provided to participants as a debit card they can use to spend their FSA balance, furthering enhancing ease-of-use.
Employers establish and own the FSA account.
Any unused funds are returned to the employer; not the participant.
If the plan allows, participants have a grace period after the plan year ends to use any remaining funds toward qualified health expenses.
Up to $500 of unused funds can be carried over from one year to the next.
For Your FSA Benefit
OneBridge is excited to roll out its new FSA product offering in the months to come as we continue to enhance the participant experience and save time and money for administrators of these benefit accounts.