Flexible Spending Accounts (FSAs)

New Online Account Setup

If you're asked for a "Login ID" to register as a new user on the ConnectYourCare website, please use the OU Health ID described here.

FSA Overview

The university offers two types of Flexible Spending Accounts (FSA): a Health Care Account and a Dependent Day Care Account. These accounts are managed by ConnecYourCare, a BlueCross BlueShield Partner. If you want to continue your FSAs for the upcoming plan year, you must re-enroll in each of them each year during annual benefits enrollment. You may allocate a maximum of $2,550 to your healthcare FSA and a maximum of $5000 to your dependent daycare FSA. Reminder: Any money left at the end of the the FSA period cannot be refunded in accordance with federal law. 

If your spouse's employer offers flexible spending accounts, you and your spouse may both allocate the maximum $2,550 amount to each of your healthcare FSAs and a combined $5,000 to your dependent daycare FSAs. This includes spouses that both work at OU.

Documentation Requirements

As required for all FSA providers, ConnectYourCare may request documentation from you to remain compliant with IRS regulations.  Remember, keep your receipts and Explanations of Benefits from your providers for every claim you make to ConnectYourCare.

Understanding an FSA

Healthcare and dependent day care reimbursement accounts can decrease the amount of taxes you pay on your income by allowing you to set aside pre-taxed income for eligible expenses. An FSA is authorized by the IRS and available through your employer.

  • Limits: You may allocate a maximum of $2,550 to your healthcare FSA and a maximum of $5,000 to your dependent daycare FSA.
  • Reimbursements: As you incur healthcare or dependent day care expenses throughout the year, you may submit a claim for those expenses to get reimbursed with tax-free dollars from your FSA account. A debit card is available for healthcare expenses.
  • A healthcare account reimburses you for out-of-pocket expenses, meaning those expenses that are not covered by your medical, dental, prescription, or vision programs. These expenses include deductibles, co-pays, coinsurance and certain over-the-counter (OTC) expenses.
  • The dependent daycare account reimburses you for expenses you incur to allow you and, if married, your spouse to work. These expenses include daycare, before and after school programs, nursery school or preschool, summer day camp, and even adult day care.
  • Eligible Items: When you use either one or both of these accounts, you reduce your taxable income so you pay less in income taxes. Take a look at the Find eligible expenses here link in the sidebar for eligible expenses in either a healthcare or a dependent day care account.
  • Deadline Reminders: You may incur healthcare FSA expenses until March 15 of the following year and dependent care expenses until Dec. 31 of the plan year. You have until April 15 to submit eligible claims. Reminder: Any money left at the end of the FSA period cannot be refunded according to federal law. 

Did you know that healthcare and dependent daycare FSA reimbursement accounts can decrease the amount of taxes you pay on your income by allowing you to set aside pre-taxed income for eligible expenses? An FSA is a Flexible Spending Account, which is authorized by the IRS and available through your employer. This type of account allows you to set aside money for healthcare and/or dependent daycare expenses on a pre-tax basis. As you incur healthcare and/or dependent daycare expenses throughout the year, you may submit a claim for those expenses to get reimbursed with tax-free dollars from your FSA account. A healthcare account reimburses you for out-of-pocket expenses, meaning those expenses that are not covered by your medical, dental, prescription, or vision programs. These expenses include deductibles, co-pays, coinsurance, and certain over-the-counter (OTC) expenses.

The dependent daycare account reimburses you for expenses you incur to allow you and, if married, your spouse to work. These expenses include daycare, before and after school programs, nursery school or preschool, summer day camp, and even adult daycare. 

When you use either one or both of these accounts, you reduce your taxable income so you pay less in income taxes. To see a list of all eligible expense items for either a healthcare or a dependent daycare account, visit the Find eligible expenses here link in the sidebar. 

Dependent Daycare FSA

NOTE: Reimbursement timing and plan years are different than the healthcare FSA.

Eligibility

Employees who need custodial care for an eligible dependent so that the employee and spouse can work (or go to school full-time) qualify for a dependent care reimbursement account. If married, the spouse must work or be a full-time student. The annual amount submitted for reimbursement cannot exceed the amount earned by the lower paid spouse. For a full-time student, an income of $200 per month for one dependent, $400 for two or more, is assumed.

Allowed Expenses

Expenses must be for the care of a dependent that is 12 years old or younger and the employee must be entitled to a deduction for this dependent under IRS Code Section 151(e) or expenses for care must be for a spouse or dependent who is physically or mentally incapable of caring for him or herself. Expenses for services needed to run the home by a housekeeper or maid are covered if they are partly for the well being and protection of the dependent. Expenses for food, clothing, education or entertainment for the dependent are not covered. Kindergarten is not an eligible expense.

Payment for Services

Payment for services cannot be made to a person who is claimed as a dependent or to a child if the child is under age 19. The provider can be a relative who is not a dependent, even if the provider lives in the employee’s home. If the services are provided for a disabled spouse or dependent outside the employee’s home, the disabled spouse or dependent must spend at least eight hours each day in the employee’s home. A provider who cares for dependents who are under age 13 and who care for more than six individuals must comply with all state and local laws at the provider's location. 

Types of Daycare Providers

Eligible types of daycare providers are:
  • Licensed daycare centers.
  • Private preschool programs.
  • Home-based licensed day cares.
  • Public or private before school and after school programs.
  • Private sitter in your home or theirs.
  • Public or private summer day camps.
  • Nursery schools.
  • Kindergarten is not an eligible expense.

In order to claim expenses as a tax credit, the social security number or federal tax number of the provider must be submitted.

NOTE: Church-sponsored day care centers are not required to provide a tax number. Dependent care expenses must satisfy eligible criteria for a dependent care reimbursement account as outlined in Section 129 of the IRS code.

Accounting Rules

There is a $5,000 maximum contribution limit per calendar year. Working couples can contribute a combined total of $5,000 to this account. Deductions cannot exceed the earned gross income of the lower paid spouse unless the spouse is a full-time student or is disabled. Reimbursements cannot exceed the amount that is in the account when the request is made. Participants have 90 days after the end of the plan year to submit all claims. For dependent daycare, the service deadline remains December 31 of the plan year; expenses must be incurred within the current calendar year. Kindergarten is not an eligible expense.
The ConnectYourCare Card is a debit card that electronically accesses your healthcare account to pay for eligible expenses when you check out at a store or medical provider.
  1. Participants who use the ConnectYourCare Card take advantage of four key benefits:
    • Immediate payment of your expenses from your healthcare account;
    • Increases your personal cash flow;
    • No claim filing due to point-of-sale approval;
    • Ease of use of your pre-tax funds.
  2. Where can you use it? You can use the card at qualifying merchant locations. Qualified merchants include physician and dental offices, vision providers, and merchants who have implemented an inventory information approval system (IIAS).
  3. Express Claims at ConnectYourCare.com makes filing non-debit card claims fast and easy.