Sign up by Nov. 10
Save money on health care, dependent care expenses
By DEBORAH STAYMAN
Are you saving all the money you could on health care and dependent care expenses?
The Flex Spending Account (FSA) is a program PEF and the state negotiated to help members save money on their taxes. The FSA has two benefits the Health Care Spending Account (HCSAccount) and the Dependent Care Advantage Account (DCAAccount) to help you pay for health care or dependent care with pre-tax dollars.
Easy to enroll
You have until November 10, 2004, to enroll in either or both of these plans for 2005.
Even if you enrolled last year for 2004, you must enroll again this year for 2005 to continue saving money on your income taxes.
A streamlined enrollment process allows you to enroll on-line at www.flexspend.state.ny.us. You can also enroll by calling 1-800-358-7202 and a customer service representative will take your application over the phone.
Enrolling is voluntary. How much you save will depend on your annual income, the number of dependents you claim on your taxes, and the amount of money you set aside through payroll deductions for your HCSAccount and/or DCAAccount.
How HCSAccount works
If eligible, you may contribute any amount from $150 to $3,000 annually in pre-tax dollars to pay for your anticipated out-of-pocket medical, dental, vision or hearing costs that will not reimbursed by health insurance. Some examples of allowable costs are dental implants, orthodontia, fees paid to non-participating providers, copayments, deductibles, laser eye surgery, contact lenses, and braille books and magazines.
To enroll in the HCSAccount you must estimate your out-of-pocket costs for 2005, then decide how much money to have withheld from your paycheck to cover those costs. Be sure to estimate conservatively, because if you dont file claims for reimburse-ment of the entire amount, you will lose whats left over at the end of 2005.
Once youre enrolled, you can mail or fax claims, then receive reimbursement by check or direct deposit.
PEF negotiated reimbursement for over-the-counter (OTC) drugs and supplies through the Health Care Spending Account in the new 2003-2007 PS&T contract. OTC reimbursement will begin soon.
PEF also negotiated the development and implementation of a debit card for the HCSAccount. Once this card becomes available, you will be able to use it anywhere a credit card is accepted to pay for qualified expenses directly from your HCSAccount.
How DCAAccount works
If you pay a caregiver to care for your child, elderly parent or disabled spouse in order to work, you can set aside up to $5,000 in pre-tax salary through payroll deduction to help pay for these expenses.
The 2003-2007 PS&T contract includes employer contributions that will resume on January 1, 2005, at the following levels based on employee gross annual salary:
Up to $35,000 $600
$35,001-$45,000 $500
$45,001-$55,000 $400
$55,001-$65,000 $300
Over $65,000 $200
Examples of expenses eligible for DCAAccount reimbursement include child care expenses (up to age 13), summer day camp, before/after school programs, adult day care, home aide, and housekeeper or cook (the latter two must provide custodial care to be considered eligible expenses).
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