Flexible Spending Accounts
Anthem Blue Cross and Blue Shield offers automated support for flexible spending accounts (FSAs), making this popular option straightforward and manageable for you and your employees. Our FSA programs include comprehensive administrative services, from claims processing to employee statements and management reports.
Why You Should Offer an FSA to Your Employees
Offering an Anthem-administered FSA with your Anthem health care benefits plan is a simple way for you to provide your employees with an easy-to-use money-saving benefit. Additionally:
| FSAs allow employees to be reimbursed for certain eligible health care and/or dependent care expenses with pre-tax dollars as a component of a comprehensive flexible benefits plan or an enhancement to a traditional benefits program. |
| An FSA enables employees to take advantage of federal laws that allow them to pay eligible health care and/or dependent care expenses with pre-tax dollars—that is, dollars not subject to Social Security, federal income and, in most cases, state income taxes. |
| Because employees’ taxable income is reduced by their FSA contribution amount, you also avoid paying Social Security (FICA) taxes on the salary reduction amounts, which means FSAs yield significant tax savings for you as well. |
| FSAs appeal to cost-conscious employees who want to save by using pre-tax funds for eligible expenses. |
| Employers value FSAs because they can enhance their employee benefits package without the expense usually associated with increasing benefits. |
Features: Anthem Blue Cross and Blue Shield’s FSA Programs
Anthem’s FSA programs feature:
| Integration with our medical claims processing so your employees are automatically reimbursed for eligible out-of-pocket health care expenses processed through our claims system. |
| Direct interface with your payroll/human resources management system to handle employee deposits. |
| Meaningful reports for you and your employees. |
| A team of account administrators who understand the nuances of an FSA and the specifics of your plan. |
How an FSA Works
Participants agree to deposit part of each paycheck to the FSA on a pre-tax basis. As they incur expenses, they’re reimbursed from the account. Depending on how you choose to structure the program, participants may open a health care spending account, a dependent care spending account or both.
Participants receive automatic FSA reimbursement for unpaid or uncovered amounts when a “regular” health, pharmacy or dental care claim is submitted to Anthem for processing—a separate FSA claim form isn’t required. Anthem simply processes and automatically reimburses the employee for the qualified amounts from the health care spending account.
Direct Reimbursement Is Available
Participants may also request direct reimbursement for qualified expenses at any time for claims not processed by Anthem. All FSA reimbursements for health and dependent care expenses are handled by a team dedicated to handling FSA claims only.
Direct deposit of FSA reimbursements is also available to your employees if you select that option. Knowing that their FSA reimbursements go directly to their bank account can give your employees peace of mind.
Examples of Eligible FSA Expenses
Many types of expenses are eligible for reimbursement from an employee’s FSA.* Some common examples include:
| Doctor visit copayments|
| Health care plan deductibles|
| Prescription drugs and over-the-counter drugs |
| Contact lenses and cleaning supplies for them |
| Smoking cessation programs|
| Qualified child care expenses |
Getting Employees Started with an FSA Is Easy
Anthem Blue Cross and Blue Shield FSA programs effectively and efficiently support FSA enrollment with the following:
| An advanced, automated administration system and meaningful management reports|
| Recording participant elections|
| Dedicated communications support|
| Easy-to-understand enrollment kit that includes descriptions, eligibility and participation requirements, a guide to estimating how much to contribute, and an enrollment form with instructions |
| Participant account statements summarizing periodic and year-to-date activity, and quarterly statements |
Need More Information?
For more information about our FSA programs, contact your broker, or call Anthem Large Group Sales at 303-831-2077.