Flexible Spending Account Plans

The Mesa Choice Flexible Spending Account Plans offer you the opportunity to set aside pre-tax dollars from your paycheck to pay for either health care or dependent care (child or elder care) expenses that would normally be paid out of your own pocket.  When you enroll in the flexible spending account program, you reduce your tax liability by reducing your taxable income. 

When enrolling in the Flexible Spending Account(s), especially for the first time, you should estimate your eligible expenses carefully. Any money left in your account after the reimbursement deadline will be forfeited and deposited into the Employee Benefit Trust.

Health Flexible Spending Account

The Health Flex plan allows you to set aside up to $3,000 in 2007 to pay for eligible health care expenses that are not covered by your insurance.  These expenses include:

• Deductibles;
• Coinsurance;
• Copayments;
• Certain items not covered by insurance.

Dependent Care Flexible Spending Account

The Dependent Care Flex Plan allows you to set aside up to $5,000 in 2007 to pay for eligible child or elder care services that are needed so you and your spouse (if applicable) can work. Once you incur expenses for certain qualifying child care expenses, you can submit those receipts to Employee Benefits for reimbursement from this account.  The claims will be reviewed for eligibility and accuracy.  Reimbursements made from this account will be equal to the amount of the claim, but not more than the amount currently in your Dependent Care Account.  This account is for day care expenses ONLY; you cannot claim dependent medical/dental expenses on the Dependent Care Flex Account.

Dependent Care arrangements which qualify, include:

• A Dependent (Day) Care Center, provided it complies with applicable state and local laws if care is provided by a facility for more than six individuals.
• An education institution for pre-school children.
• For school-age children (Kindergarten through age 12), only expenses for before and after school care are eligible. Tuition fees do not apply.
• An "individual" who providers care inside or outside your home who is not your chiild under age 19 or anyone you claim as a dependent for federal income tax purposes (i.e., spouse).

Reimbursement for Expenses

If you receive reimbursement for an expense from one of the flexible spending accounts, you cannot claim that expense as a deduction or take a federal income tax credit on your income tax return.

Claims may be submitted for reimbursement up to 90 days after the end of a calendar year in which you are enrolled.  The deadline to submit FSA claims for expenses incurred January 1, 2008 through December 31, 2008, must be submitted by March 31, 2009, by 5:00 p.m.

How to Enroll

• New employees may enroll in the FSA program upon hire. 

• If you choose not to enroll at that time, you must wait until Open Enrollment to enroll for the following calendar year. 

• All other employees may enroll during the Annual Open Enrollment period for the following calendar year. 

• You may also enroll mid-year if you experience a change in status.

• Participants MUST re-enroll every year.

Change in Status

• The only time you can enroll or change your FSA mid-year is when you experience a Change in Status as defined by the Internal Revenue Code. 

• All mid-year enrollments and changes must be made within 30 days of the qualifying change. 

Examples of changes permitted include:

• Change in legal marital status, including marriage, divorce, legal separation; 

• Change in number of dependents, including birth, adoption, placement for adoption, or death; 

• Change in employment status or work schedule for either you, your spouse, or your dependent child; 

• Change in dependent status due to attainment of the maximum age as defined by the Plan or loss of student status.

 More information regarding Change in Status requirements may be found in the Plan Document.

How to Submit FSA Claims

For more information on eligible and ineligible expenses, please click here. (Excerpted from the Plan Document.)

To receive reimbursement from your Health Care FSA, you must::

1. Have the claim processed under your health insurance plan. In most cases, your doctor, hospital, lab or dentist will send your claim to our office directly. You will know that the claim has been processed when you receive an Explanation of Benefits (EOB) form in the mail at your home or PO box. The EOB is a very important document and should be kept for future reference. It tells you how much of the billed charge was allowed, how much the City Plan paid, and much you owe. 
2. Once the claim has been processed, and you have received your EOB, send a copy of it, along with a completed FSA Health Care Claim Form to "Employee Benefits: Attention FSA." Make sure you itemize your expenses on the FSA claim form; otherwise it will be returned to you for completion. 
3. If you receive health-related services and you paid a copay, or if you know that the services are not covered under your health plan, you don't have to submit the claim to Employee Benefits for processing under the health plan. Instead, complete the Health FSA Claim Form, attach the receipts for your items, and send them to "Employee Benefits: Attention FSA."  
4. If you want to be reimbursed for an eligible over-the-counter medication, attach a copy of the cash register receipt that itemizes the medication purchased along with the date and location to the Health Care FSA Claim Form. If the cash register receipt doesn't show the name of the medication, attach the packaging from the medication so we can verify that it is an eligible medication expense. 
   
   Please remember: Cash register receipts are only valid for purchase of over-the-counter medication. For any other services rendered, cash register receipts will not be accepted as verification of the services rendered. Credit card receipts are also not accepted.

For Dependent Care Claims:

1. Have your child's day care provider give you a receipt showing his/her name or the name of the day care center, his/her/its tax identification number, the amount paid, and the dates of service for which payment has been made.
2. Submit the receipt along with a completed Dependent Care FSA Claim Form to "Employee Benefits: Attention FSA."

Claims for this program are processed every Thursday*  in the Employee Benefits Office. Submit claims by Wednesday to ensure processing the next day.

*Subject to change.  For example, if a holiday occurs on a Thursday, claims would be processed the next Thursday.

FSA Forms

Account Balance

Your account balance will be included on your Explanation of FSA Benefits whenever you receive a reimbursement check. You may also login here at CHIP to view your FSA account, or contact the Employee Benefits office at 480-644-3329.

For More Information

For detailed information about this program, please click here (excerpted from the Plan Document), or  contact the Employee Benefits Office at 480.644.5837.