1. MiCSC
  2. Employee Benefits
  3. Flexible Spending

  • Flexible Spending Accounts Header: Open Enrollment November 2, 2020 through November 2r, 2020
     

    New: IRS 2020 Plan Year Rule Change for Health Care & Dependent Care FSAs:

    1. All unused funds from the 2020 plan year will carryover to 2021 for both Health Care and Dependent Care FSAs for employees who had an active account as of December 31, 2020 and either did not enroll for the 2021 plan year or are actively enrolled in the 2021 plan year. Normally the Health Care FSA carryover limit is $550 and there is no carryover for Dependent Care FSAs but temporary IRS provisions have allowed this change for the 2020 plan year. These funds can be applied to 2020 expenses submitted by March 31, 2021 or may be applied to expenses incurred during the 2021 plan year. Remaining 2020 plan year balance(s) will display in HealthEquity WageWorks’ system as being part of an employee’s 2021 account balance after April 15, 2021 but are available for use prior to that.
    2. Temporary increase to the age limit for qualified dependents under a Dependent Care FSA for employees who enrolled in the 2020 Dependent Care FSA by January 31, 2020. Eligible employees may use any remaining funds in their 2020 Dependent Care FSA for qualifying expenses incurred for a child who turned age 13 during plan year 2020 up until that dependent turns age 14.
       

    HealthEquity WageWorks’ system will be configured to reflect the changes listed above the evening of March 17, 2021. Prior to this date, their system will still be configured for a $550 carryover limit for Health Care FSAs, a grace period only for Dependent Care FSAs, and a maximum dependent age limit of up to 13 for Dependent Care FSAs.

    REVISED: 2020 FSA Plan Booklet

    If you have questions about these temporary provision for which you may now be eligible, contact HealthEquity WageWorks at 877-924-3967 or review the 2020 Plan Year FSA Rule Change FAQs.

  • Due to the ongoing national emergency declared for the COVID-19 pandemic, the deadline to submit requested changes to FSA enrollments has been extended* if employees have experienced a qualifying life event (e.g., birth of a child, marriage, a significant change in cost of child care, etc). Employees who would like to modify their Health Care or Dependent Care FSA due to a qualifying life event occurring on or after January 30, 2020 must complete the FSA Life Event/Election Change Form. Follow the instructions on the form for mailing or faxing it to the Employee Benefits Division, or email it to MCSC-EBD@michigan.gov.

    *The extended due date is now March 1, 2021, plus the remainder of the original 31-day deadline period occurring after February 29, 2020.

    2019 FSA Plan Year: The run-out period deadline to submit new claims and claim substantiations to HealthEquity WageWorks for eligible expenses incurred January 1, 2019 through March 15, 2020 has been extended through May 31, 2021.

  • HealthEquity WageWorks combination buttonHealthEquity recently acquired WageWorks. You will be seeing several updates specific to FSAs in the coming months to introduce you to the HealthEquity brand, including  www.wageworks.com, the member portal, emails, and other materials.

    The state offers the following types of FSAs:

    Health Care FSAs: These allow you to put aside payroll deducted pre-tax dollars for eligible health care expenses not covered by any medical, dental, or vision plan for you and qualifying individuals.

    • General Purpose Health Care FSA (GPHC FSA) is the standard Health Care FSA the state traditionally has offered and will continue to offer. This FSA can be used for eligible health, prescription, dental, and vision expenses.
       
    • Limited Purpose Health Care FSA (LPHC FSA) is a Health Care FSA that can be used for eligible dental and vision expenses and is compatible with the new State High Deductible Health Plan (HDHP) with Health Savings Account (HSA) or any other HSA enrollment. This FSA is intended added for employees enrolled in the State HDHP with HSA. It will be offered for the first time from January 1, 2021.
       

    Dependent Care FSA: This allows you to put aside payroll deducted pre-tax dollars for eligible child and elder-care expenses for your eligible dependents, so you can attend work, find work, or attend school. Dependent Care FSAs are not Health Care FSAs for your dependents.

FSA Quick Links

FAQs and Eligible Expenses

Forms

Timeline

  • 2020 & 2021 FSA Plan Year

    • Nov. 2–Nov. 24, 2020: FSA Open Enrollment now part of Benefits Open Enrollment, for the 2021 FSA plan year
    • Jan. 1, 2021: First day of the 2021 FSA plan year
    • Jan. 7, 2021: First payroll deduction for the 2021 FSA plan year
    • Apr. 15, 2021: Remaining 2020 plan year balances will display in HealthEquity WageWorks' system as being part of a 2021 account balance.
    • Dec. 31, 2021: Last day of the 2021 FSA plan year
    • Mar. 15, 2022: Last day to incur charges for a 2020 & 2021 plan year Dependent Care FSA (Grace Period) through HeathEquity WageWorks
    • Mar. 31, 2022: Last day to submit substantiation documentation and receipts to HealthEquity WageWorks for the 2020 & 2021 FSA plan year

    When submitting a claim or contacting HealthEquity WageWorks, you will be asked to provide an ID Code. Enter the last four digits of your employee ID number, not the last four of your social security number.