The State of Illinois provides employees with IRS tax-favored Flexible Spending Accounts (FSA) to stretch medical expense and dependent care dollars. Effective July 1, 2014, ConnectYourCare is the plan administrator for the FSA Program. Flexible Spending Accounts feature:
- IRS-approved reimbursement of eligible expenses tax-free
- Per-pay period deposits from your pretax salary
- Savings on income and Social Security taxes
- Security of paying anticipated eligible expenses with your FSA
If you spend $240 or more per year on recurring eligible expenses, you may save money by paying for them with an FSA. When you enroll in an FSA, you decide the amount you want deducted from your salary each pay period. That amount will be deducted each pay period prior to income and Social Security taxes being taken, saving you income and Social Security taxes each time you receive wages. Visit the "Account Savings Calculators" at ConnectYourCare to determine your potential savings.
Waiting for an Explanation of Benefits (EOB) to file for MCAP reimbursement?
Find out what you should do by going to the Explanation of Benefits
- The Medical Care Assistance Plan (MCAP) allows members to pay eligible out-of-pocket medical, dental, prescription and vision expenses incurred during the plan year with tax-free dollars. The maximum contribution amount per plan year is $2,500. Effective July 1, 2015, the maximum annual contribution will be $2,550.
- The Dependent Care Assistance Plan (DCAP) allows members to pay eligible child and/or adult day care expenses incurred during the plan year with tax-free dollars. The maximum contribution amount per plan year is $5,000.
Employees can enroll in MCAP and DCAP anytime during the year upon experiencing a qualifying change in status event that is consistent with enrollment into the program. All employees who enroll in MCAP will receive one ConnectYourCare debit card at no cost (additional cards for dependents can be requested via the ConnectYourCare website). When using the card, expenses are automatically deducted from your MCAP account. Although most transactions paid with the card do not need follow-up documentation, some transactions will require substantiation documentation. Transactions that do require documentation will be indicated on the ConnectYourCare website. Participants must submit the required documentation to ConnectYourCare.
The first day you are eligible for MCAP or DCAP reimbursement depends on when you enroll in the program.
- If you enroll during the Benefit Choice Period (held during the month of May), your effective date is July 1st.
- If you enroll mid-year due to experiencing a qualifying event, your effective date is the first day of the pay period following the date the enrollment form was signed or the date of the qualifying event, whichever is later.
Eligibility Service Dates
- MCAP Services: For the FY2015 plan year, there will not be a "grace period". Instead, FY2015 eligible participants will have the ability to "carryover" up to $500 of unused account balances to the following plan year. Eligible participants who have a balance in their MCAP account after the run-out period, September 30th, will have up to $500 of that account balance automatically carried over to the next plan year. This "carryover" will occur whether or not the participant re-enrolls in MCAP the next plan year. For example, an MCAP participant enrolls in MCAP for the maximum amount of $2,550 for FY2016. On October 1, 2015, the balance remaining in their FY2015 MCAP account was $350; therefore, they will have a total of $2,900 in their MCAP account to use during the FY2016 plan year. Services provided after June 30th are not eligible for reimbursement. The "grace period" no longer applies to MCAP expenses.
- Note: Participants who have a balance exceeding $500 after September 30, will forfeit any amount exceeding this limit. The "carryover" provision applies only to MCAP and does not apply to DCAP accounts.
- DCAP Services: Services are only eligible for reimbursement when provided during the plan year (July 1 through June 30). Services provided after June 30th are not eligible for reimbursement. The "grace period" does NOT apply to DCAP expenses.
- MCAP accounts – the entire amount of your annual enrollment election is eligible for reimbursement your first day of eligibility.
- DCAP accounts – reimbursement is limited to the amount of funds in your account on the day the reimbursement request is received.
FSA Claim Reimbursements
Reimbursement of MCAP or DCAP funds must be requested before the end of the run-out period each year, which is September 30th. Only expenses incurred on or before June 30th will be eligible for reimbursement. Participants can request reimbursement of eligible funds by:
- Entering claim details on the ConnectYourCare claim form and either:
- Faxing the form to: 866-892-8063, or
- Mailing the form to: Claims Department, P.O. Box 622317, Orlando, FL 32862-2317
Reimbursement may be direct deposited in your bank account by going to "My Profile" and setting up a bank account at the ConnectYourCare website.