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Health Care Flexible Spending Account (HCFSA) (Hawaii)
What is the advantage of an HCFSA?
One of the biggest advantages of an HCFSA is the tax savings. Every dollar you set aside in your HCFSA reduces the amount you pay in income taxes (or taxable income). Plus, you can reimburse yourself from your HCFSA for qualified expenses that you’re already paying for with after-tax dollars.
You can enroll in the HCFSA if you’re enrolled in any of the Hertz Medical Plans and even if you are not enrolled in a Hertz Medical Plan. You can use it to pay for qualified medical, prescription, dental, and vision expenses. You must use all of your money in your account by the deadline or you forfeit it.
To access your HCFSA, create an account on UMR.com.
What expenses can I pay for with the HCFSA?
Your HCFSA funds can be used to pay for qualified out-of-pocket expenses. There are hundreds of qualified expenses, including:
- Medical and dental plan deductibles, copays, and coinsurance
- Prescription drug copays and coinsurance
- Certain over-the-counter drugs with a prescription
- Vision expenses
Refer to IRS Publication 502 for a complete list of qualified expenses.
Will I receive a debit card for the HCFSA?
Yes, you’ll receive a convenient debit card for point of service transactions for dental, vision, and prescription drug expenses. Note that you may still need to submit documentation of your purchases and, if you choose, you can pay these providers directly online.
You’ll need to manually submit your medical claims to UMR. You can access the form here.
How much can I contribute to my HCFSA?
The 2023 IRS limit for the HCFSA is $3,050.
Can I change my HCFSA contribution during the year?
HCFSA contributions cannot be changed during the plan year unless you experience a qualified life event, like having a baby or getting married.
How much should I contribute to my HCFSA?
You can use your prior year’s expenses as a base to help you calculate your future expenses. The HCFSA has a “use it or lose it” rule, so any funds you don’t use by the end of the plan year will be forfeited.
When is the money available in my HCFSA?
If you’re a new hire, your entire balance is available on your benefits effective date. If are a current employee and enrolled during Open Enrollment, your entire HCFSA balance is available on July 1.
What happens to the money in my HCFSA at the end of the plan year on June 30?
You must incur eligible expenses no later than September 15 and submit a claim for reimbursement by December 31 following the end of the prior plan year (June 30) or any remaining balance will be forfeited.
What is the difference between an HCFSA and a Dependent Day Care FSA (DCFSA)?
The Dependent Day Care FSA is a tax-advantaged savings account designed to help you pay for qualified care expenses for an eligible dependent, such as daycare or elder care, so you and/or your spouse can continue to work.
The HCFSA is a tax-advantaged savings account designed to help you pay for qualified medical, dental, prescription, and vision expenses for you and your dependents. Both are governed by IRS rules.