Health Care Flexible Spending Accounts

Maximum Contributions

The annual maximum limit for contributions to a health care reimbursement account in 2007 is $3,500. Care should be exercised in estimating any eligible health care expenses because any amounts left over in the health care FSA at the end of the plan year, per IRS regulations, will be forfeited.

Filing Claims

Employees first pay any fees owed to health care providers. Once an employee pays an eligible expense, the employee files a Medical Care Reimbursement Request. Reimbursement checks are payable directly to employees once Crosby receives a reimbursement claim form with attached documentation of expenses. Many employees choose to submit claims on a monthly basis, though claims may be submitted at any time during the plan year or up to three (3) months following the end of the plan year. You will also receive an explanation of benefits from Crosby when you are reimbursed.

Download Reimbursement Form (Acrobat PDF)

Eligible Health Care Expenses

Eligible health care expenses are costs not covered under any insurance coverage that the employee currently holds. Examples of eligible expenses include:

• Acupuncture
• Alcohol and drug addiction treatment
• Artificial limbs
• Chiropractic treatment
• Christian Science practitioners
• Cosmetic procedures ONLY if to correct a congenital abnormality or disfiguring illness or accident
• Deductible, coinsurance, and co-payments for medical, dental and vision care under all insurance plans
• Dental expenses to the extent not covered or not paid in full by insurance
• Diabetes care expenses (insulin, syringes, monitoring equipment)
• Eye exams, eyeglasses, contact lenses and necessary supplies
• Health club fees IF prescribed for specific medical condition
• Hearing exams, hearing aids and other special equipment for the hearing impaired
• Lodging costs ($50 per person per night) for medical care
• Nursing home care (for medical reasons)
• Over the counter drugs
• Physical exams
• Physical and occupational therapy
• Prescribed medications
• Private duty nursing
• Private hospital room
• Psychotherapy
• Special equipment for the physically disabled, including modifications to a house or car and corrective devices
• Special schooling/testing expenses for a child with a disability
• Transportation for the primary purpose of medical care (prevailing rate)

The opportunity to use pre-tax dollars to pay for over-the-counter (OTC) drugs available without prescription is now available as well.  Examples of medications that are now included are antacids, allergy medications, pain relievers, and cold medicines.  As of now, vitamins and other dietary supplements are not included.  Note that OTC expenses cannot be included for purposes of the itemized medical expenses deduction that employees may file for when completed their taxes.

Typical Expenses that you cannot claim:

• Premiums for health insurance and Medicare
• Any expenses reimbursable by insurance, Workers' Compensation or any other means
• Medically unnecessary cosmetic treatments and procedures

For questions concerning allowed reimbursements employees are directed to call Crosby Benefit Systems at 617-928-0700.