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, 2013, WageWorks will be the plan administrator for the FSA Program. Please read the FAQs regarding the migration from FBMC to WageWorks.
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. Use the WageWorks tax calculator 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.
- 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 WageWorks debit card at no cost (additional cards for dependents can be requested via the WageWorks 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 in red on the WageWorks quarterly statement. Participants must submit the required documentation to WageWorks along with the Card Use Verification Form.
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 expenses are eligible when incurred from your effective date (see above) through the last day of the "grace period." The "grace period" is the 2 1/2 month period following the end of the plan year (i.e., September 15th). The "grace period" only applies to MCAP expenses.
- DCAP services are only eligible for reimbursement when those services are 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.
Reimbursement of an MCAP or DCAP funds must be requested before the end of the run-out period, which is September 30th of each year. Participants can request reimbursement of eligible funds by:
- Entering claim details online, printing the completed form and faxing or mailing with documentation to:
- Fax: (855) 291-0625
- US Mail: CLAIMS ADMINISTRATOR, P.O. Box 14326, Lexington, KY 40512
- Submitting the claim information and documentation electronically by either:
- logging into the WageWorks website and uploading the information, or
- using the EZ Receipts mobile phone application
Reimbursement may be direct deposited in your bank account by completing the application and faxing or sending to WageWorks, or by logging into your WageWorks account and entering your bank account information (click on ‘Profile’, then ‘Reimbursement Method’). Participants do not need to complete a direct deposit application each year as direct deposit accounts remain in effect until they are cancelled, changed or until the employee is no longer in the program.
FY2014 FSA Forms
FY2014 FSA Publications
FY2014 Key Points