Diversified Benefits Services
LSU has partnered with Diversified Benefit Services, Inc. (DBS) to offer employees Flexible Spending Accounts (FSA). This benefit provides you with the opportunity to set aside pre-tax dollars for out-of-pocket health care or dependent care expenses incurred by you and/or your eligible dependents. You must determine an annual target amount to be withheld from your paycheck. You should determine the amount to be withheld by forecasting your out-of-pocket health care and/or dependent care expenses for the entire Plan Year (January 1 through December 31). IRS regulations state that if all the money in the account is not used by the end of the Plan Year, the remaining balance must be forfeited (known as the “Use-it-or-Lose-it rule”).
Please note that due to the tax savings associated with the FSA, the IRS does not allow employees to be enrolled in both the FSA and the Pelican HSA 775 Health Plan. If you are enrolled in the Pelican HSA 775 plan, you are not eligible to participate in a healthcare spending account.
The monthly fee to participate in the FSA is $5.00/month ($6.67/month for 9-month employees), which includes participation in both the Healthcare Spending Account and the Dependent Care Spending Account, regardless of contributions made to either account(subject to minimum/maximum requirements).
|Type of Account
|Healthcare Flexible Spending
|Dependent Care Flexible Spending
||$5,000 (or $2,500 if married and filing taxes separately)
Healthcare Flexible Spending Account
Eligible employees are allowed to enroll in increments of $100, up to $2,750 annually. Participants enrolled in the Healthcare FSA will be provided with a pre-loaded debit card with your annual target amount for your use throughout the Plan Year. Payroll deductions are made in equal payments throughout the year, but you have access to the full contribution at the beginning of the Plan Year. The deduction is made before taxes, thus making the spending account dollars tax-free. To access the money in your account, you can either use your FSA Debit Card at the time of service, you can file a paper claim requesting reimbursement for eligible, out-of-pocket expenses, or you can file a claim and upload supporting documents online at www.dbsbenefits.com.
Eligible Healthcare FSA expenses include:
- Health insurance deductible
- Copays and coinsurance for medication or pharmacy expenses
- Dental insurance deductible
- Dental expenses such as exams, cleanings, fillings, crowns, x-rays
- Vision expenses such as frames, lenses, contact lenses
- Over-the-Counter (OTC) medications such as allergy and anti-inflammatory, cold and flu, pain relievers, cough suppressants
Important information regarding your FSA Prepaid Benefits Card.
Dependent Care Flexible Spending Account
You may receive tax-exempt reimbursements for the care of certain individuals in your household, which includes your dependent children age 12 or younger and any other individuals who reside with you and who rely on your for at least half of their support or are physically or mentally unable to care for themselves. The IRS states that if you are married, both you and your spouse must be employed in order to utilize the Dependent Care FSA. You must file manual claims directly with DBS to be reimbursed. A debit card is not issued for the Dependent Care FSA.
Eligible Dependent Care Account expenses include:
- Day-care costs
- Schooling costs, not including food and clothing, for either private or public schools, for children not yet in kindergarten
- If expenses for food and clothing cannot be separated from the total cost of child care, then they are eligible expenses
- Before/after-school care
- Babysitting and licensed day-care center costs
- Housekeeping services in your home that include day care
- Elder care if dependent is claimed on your tax return
- Costs of transportation, overnight camping, nursing care facilities, and the schooling costs of children in the first grade or above are generally ineligible expenses
Participation in Dependent Care Flexible Spending Accounts:
- If you are married, both you and your spouse must be employed in order to use this Plan.
- Your contribution may not exceed the lesser of your income or the income of your spouse.
- If you are married and file separate returns, your maximum contribution is $2,500.
- If you are married and file a joint return, your maximum contribution is $5,000.
Note: Remember, you must re-enroll in the Flexible Spending Account (FSA) each year during Annual Enrollment. Your FSA enrollment will not automatically carry over from year to year. If you choose not to re-enroll during annual enrollment, your account will automatically CANCEL on December 31.
There will be a grace period immediately following the end of the Plan Year for both Health care and Dependent Care Spending Accounts. This extension will provide participants additional time to incur expenses for reimbursement from the previous year’s account. The grace period will be available after the end of the Plan Year from January 1st through March 15th. The claim run-out period is April 15th for the prior year expenses.
Filing FSA Claims
Filing a claim is as easy as completing a claim form and attaching a receipt. Timely filing of a claim will result in a timely reimbursement. Claims may also be filed online.
Click here to file a manual claim form.
Click here to file a claim online.
Enrollment and Effective Date of Coverage
Timely Applicant: If you enroll within your first 30 days of full-time employment, your coverage will be effective the first of the month following your first full calendar month of employment.
Existing Employee: Employees may enroll during annual enrollment which is within the month of October. Benefits will be effective January 1.
Mid-Year Changes / Cancel Coverage
If you experience a life qualifying event, you may enroll by completing an election in Workday within a 30-day window of the qualifying event. Benefits will be effective the month following the election. To cancel your Flexible Spending Account during the plan year, it must be due to a qualifying event.
If you leave LSU employment, you can continue to submit claims. However, you may only submit claims for expenses incurred on or before the last day of your employment. Claims must be filed within 30 days of the end of the month in which you terminate or within 30 days following the end of the plan year, whichever is sooner.