Health Benefits FAQs

What is a Health Savings Account (HSA)?

An HSA from Omnify is a personal savings account that can be used to pay for medical, dental, vision, and other qualified expenses now or later in life. HSAs allow you to save money by reducing your taxable gross income, spending pre-tax dollars for healthcare, and growing your HSA dollars tax-free.

Since it’s a savings account, you’re encouraged to save more than you spend. Unlike flexible savings account funds, which are “use it or lose it,” your HSA balance rolls over from year to year, earning interest along the way. The funds can even be invested, making it a great addition to your retirement portfolio.* The account is portable, meaning if you ever leave your employer, you can take the HSA with you because it’s your money and your account.

*Investment products: Not FDIC Insured - No Bank Guarantee - May Lose Value

Who's eligible to open an HSA?

If you meet all the criteria listed below and neither you nor your spouse has currently elected a medical FSA, you’re eligible to open and contribute to an HSA.*

  • You’re covered by a qualified HDHP on the first day of a given month
  • You’re not covered by another non-HDHP, such as a health plan sponsored by your spouse’s employer
  • You’re not enrolled in Medicare or TriCare
  • You haven’t received VA benefits at any time during the preceding three months; if you’re a veteran with a service-connected disability, this exclusion doesn’t apply
  • You’re not claimed as a dependent on another individual’s tax return

*Other exceptions & restrictions may apply. Please consult a tax or legal professional to discuss your personal circumstances.

How much can I contribute to an HSA?

The IRS has established the following annual contribution limits.

Year

Family coverage

Individual coverage Catch-up for those age 55+
2020 $7,100 $3,550 $1,000
2021 $7,200 $3,600 $1,000

 

What are the penalties for taking a non-qualified withdrawal from my HSA?

Nonqualified distributions will be subject to ordinary income tax and, in some cases, a 20% penalty. The only time tax is ever owed on principal or interest from your HSA is if the money is distributed for nonqualified expenses before you reach age 65, become disabled, or die. Even if you use the funds for nonqualified expenses after you’re 65 or disabled, you’ll only be subject to ordinary income tax on the money you withdraw without the 20% penalty.

What health care expenses does my HSA cover?

Below is a quick reference list of expenses that can be reimbursed from a health savings account. For more detailed information, please refer to IRS publications 969 and 502. For tax advice, please seek the services of a competent tax professional.

Medical expenses

  • Visits to your doctor
  • Prescriptions
  • Physical therapy
  • Over-the-counter medications
  • Menstrual care products

Dental expenses

  • Dental exams
  • Crowns
  • Orthodontia

Vision expenses

  • Vision exams
  • Glasses
  • Contacts
  • Lasik surgery

Health coverage expenses

  • COBRA premiums
  • Long-term care insurance premiums
  • Medicare premiums (excludes Medigap)
What is a Healthcare Flexible Spending Account?

A flexible spending account (FSA) from Omnify is an employer-sponsored benefit that lets you pay for eligible medical expenses on a pre-tax basis. If you expect to incur medical expenses that won’t be reimbursed by another plan, FSAs are a great way to save money while covering those costs.

How does a Healthcare FSA work?

Flexible spending accounts reduce your taxable income by setting aside pre-tax dollars to pay for eligible healthcare expenses.

You can contribute up to the IRS annual limit to your FSA. This annual election amount will be deducted evenly out of each paycheck on a pre-tax basis and deposited into your FSA. You can then use the funds to pay for eligible expenses. Changes to the annual election amount are only permitted due to a change of status, such as a marriage or the birth of a child.

One big perk to an FSA is that it’s pre-funded, meaning you’ll have access to your full annual election amount at the very beginning of the play year, regardless of the amount contributed to date. This can be used to pay for dental, vision, and medical expenses tax-free.

What happens if I don’t spend all of my Healthcare FSA by the end of the plan year?

Any unused funds at the end of the plan year are forfeited — also called the “use it or lose it” rule — so be sure you’re only allocating dollars for predictable medical, dental, or vision expenses. Keep in mind, you may have a carryover or grace period at the end of the plan year. Check the summary plan document your employer provided.

Can I change my healthcare FSA election amount mid-year?

Elections can only be altered if you experience a change in status as defined by IRS regulations, such as a marriage, divorce, birth, or death in your immediate family.

What happens to my healthcare FSA if my employment is terminated?

Participation in your FSA is also terminated. This means that only expenses that were incurred prior to your termination date are eligible for reimbursement.

How do I access my Healthcare FSA funds?

If you have a benefits debit card, simply swipe it at the register. Otherwise, just file a claim including the receipt documenting the patient name, provider, date and type of service, and cost. Once approved, your reimbursement will be direct deposited into your bank account.

How do I contribute to a healthcare FSA?

Your Healthcare FSA is funded through your employer. Your annual election will be divided by the number of pay periods in your plan year. This amount will be deducted from your paycheck before taxes are assessed.

What expenses are covered by a health care FSA?

Below is a quick reference list of expenses that can be reimbursed from a flexible spending account. For more detailed information, please refer to IRS publications 969 and 502.

  • Chiropractic care
  • Contact lenses and cleaners**
  • Copays, coinsurance, and deductibles
  • Dental treatments (X-rays, fillings, braces, extractions, etc.)
  • Diabetic supplies
  • Doctor’s office visits and procedures (physicians, surgeons, specialists, or other medical practitioners)
  • Eye exams
  • Eyeglasses (prescription and reading)
  • Hearing aids
  • Laboratory services and fees
  • Laser eye surgery
  • Operations/surgery (excluding unnecessary cosmetic surgery)
  • Orthodontia
  • Over-the-counter medications**
  • Menstrual care products**
  • Prescription drugs
  • Smoking cessation programs

** Stockpiling of over the counter (OTC) items is not permitted, and expenses resulting from stockpiling are not reimbursable.  When purchasing OTC items there must be a reasonable expectation that such items can be used during the plan year. Buying more than three of the same item in any one transaction is considered stockpiling and will not be reimbursed.

What happens to my LPFSA if my employment is terminated?

Participation in your LPFSA is also terminated. This means that only expenses that were incurred prior to your termination date are eligible for reimbursement.

What happens if I don’t spend all of my LPFSA by the end of the plan year?

Any unused funds at the end of the plan year are forfeited — also called the “use it or lose it” rule — so be sure you’re only allocating dollars for predictable dental and vision expenses. Keep in mind, you may have a carryover or grace period at the end of the plan year. Check the summary plan document your employer provided.

What is a Limited Purpose Flexible Spending Account?

A Limited Purpose Flexible Spending Account, or LPFSA, from Omnify is an employer-sponsored benefit that allows you to pay for eligible dental and vision expenses on a pre-tax basis. If you expect to have dental and vision expenses that won’t be reimbursed by another plan, LPFSAs are a great way to save money while covering those costs.

What expenses can I use my LPFSA to cover?

Below is a quick reference list of expenses that can be reimbursed from an LPFSA. For more detailed information, please refer to IRS publications 969 and 502.

  • Bridges
  • Crowns
  • Dentures
  • Dental surgery
  • Orthodontia
  • Root canals
  • Contact lenses
  • Eye exams
  • Eyeglasses
  • Eye surgery
  • Prescription sunglasses
  • Vision correction procedures
Can I change to my DCFSA election amount mid-year?

Typically, you can’t change your contribution amount mid-year. However, if you experience a qualifying event — such as the birth of a new child — or if your child care provider has a change in cost, you may be eligible to adjust your contribution.

What happens if I don’t spend all of my DCFSA funds by the end of the plan year?

Any unused funds at the end of the plan year are forfeited — also called the “use it or lose it” rule — so be sure you’re estimating conservatively when you make your annual elections.

Are there rules about who can care for my dependents?

Yes. You can’t use funds to pay for care provided by a spouse, a person you list as a dependent for income tax purposes, or one of your children under the age of 19.

Do I have access to my entire DCFSA election amount at the beginning of the year?

No, you will only have access to funds that have already been deducted from your paycheck.

What are the annual DCFSA contribution limits?

The IRS limits annual contributions to $5,000 on income tax returns for single or married filing jointly and $2,500 for married filing separately.

What type of care is not eligible?

Care expenses that are not eligible to be paid with DCFSA funds include care for children over age 13, overnight camps, babysitting that is not work-related, school fees for kindergarten and higher grades, and long-term care services.

What type of care is eligible?

Eligible expenses must be for the purpose of allowing you to work or look for work. Services may be provided at a child or adult care center, nursery, preschool, after-school, summer day camp, or a nanny in your home.

 

Who qualifies as a dependent for a DCFSA?

You can use your DCFSA to pay for care for children under age 13 who you claim as dependents, as well as adults or other relatives who are incapable of caring for themselves (if you provide more than 50% of their support).

What is a Dependent Care Flexible Spending Account?

A dependent care flexible spending account, or DCFSA, is a flexible spending account that lets you set aside pre-tax dollars for dependent care expenses. DCFSA contributions deducted from your paycheck are tax-free and remain tax-free when spent on eligible dependent care expenses.

What is a qualified high deductible health plan (HDHP)?

An HDHP is a health insurance policy that offers higher deductibles and lower premiums than a traditional insurance plan. Like a traditional plan, you’re responsible for paying for your qualified medical expenses up to the deductible. After the annual deductible is met, you’re responsible only for a portion of your medical expenses through coinsurance or copayments. A qualified HDHP can be combined with an HSA to offer a tax-advantaged way to help pay for the medical expenses you may incur.

Year Annual deductible Out of-pocket expenses
2020 At least $1,400 for individual
coverage and $2,800 for
family coverage
Not exceeding $6,900
for individual coverage
and $13,800 for family
coverage
2021 At least $1,400 for individual
coverage and $2,800 for
family coverage
Not exceeding $7,000
for individual coverage
and $14,000 for family
coverage

 

What is the routing number for my Omnify HSA?

The Omnify HSA Routing Number is 104914160.

What if I’m no longer covered by an HDHP?

Your HSA is portable, so funds are never lost due to changes in your employment or health insurance. If at some point you’re no longer covered by an HDHP, you’ll still have access to your funds to pay for qualified medical expenses. However, you’ll no longer be eligible to make contributions.

How do I access my HSA funds to pay for qualified medical expenses?
  • Use your benefits card
  • Pay bills through online BillPay
  • Reimburse yourself for out-of-pocket healthcare purchases
Do I need to submit receipts for my HSA expenses?

No, you don’t need to submit any receipts to us. However, be sure to save receipts on any qualified medical expenses paid out of your HSA for tax purposes.

Can an HSA be used to pay prior-year expenses?

Yes, as long as the eligible medical expenses were incurred after your HSA was established and your HDHP coverage was in effect.

What tax forms will I receive from my Omnify HSA?

You may receive both 1099-SA and 5498-SA tax forms. The 1099-SA notifies the IRS of any distributions you made from your HSA during the tax year. Form 5498-SA notifies the IRS of any contributions made to your HSA during the tax year.

What are the penalties for taking a non-qualified withdrawal from my HSA?

Nonqualified distributions will be subject to ordinary income tax, and in some cases, a 20% penalty.  The only time tax is ever owed on principal or interest from your HSA is if the money is distributed for non-qualified expenses prior to your reaching age 65, becoming disabled or dying. Even if you use the funds for non-qualified expenses after you are 65 or disabled, you will only be subject to ordinary income tax on the money you withdraw without the 20% penalty.

Does an employer have to make contributions to an employee’s HSA?

No. Employers are under no obligation to make any contributions to their employees’ HSAs. Many employers find that contributing to employees’ HSA accounts may help improve adoption of HDHPs and HSAs, especially if they are transitioning from a more traditional type of health coverage.

May an employer fully fund the employee’s HSA at the beginning of the year?

Yes. An employer may fully fund the employee’s HSA at the beginning of the year, however HSAs belong to the individual and not the employer and the employer has no further control over the accounts after they have been funded. As a result, many employers elect to fund employee’s HSAs periodically throughout the year.

Are an employer’s contributions to an HSA treated as a deductible health care expenses?

The tax treatment of employer HSA contributions depends on how the business is incorporated. For sole proprietors, partnerships, and S-corporations, contributions to a partner’s HSA will be treated as a distribution to the partner and included in the partner’s income and may be deductible by the partner but not by the business (see IRS Notice 2005-8 for treatment of HSA contributions in exchange for guaranteed payments of services rendered for partners and two percent shareholder employees of S-corporations). For larger corporations, employer contributions are treated as employer-provided coverage for medical expenses under an accident or health plan.

Is tax reporting required for my Omnify HSA?

Yes, IRS Form 8889 is used to report HSA contributions and distributions. You must complete this form each year with your tax return. Please consult a tax professional regarding tax rules.

Are over-the-counter medications eligible for reimbursement from my HSA?

Yes, over-the-counter (OTC) medications are an eligible expense. An OTC medication is a product with an active drug ingredient. A few of the most common items are pain relief medication, cold and flu products, allergy products, and heartburn medication. You can find a comprehensive list on the HSA Store website.

Who is eligible under an FSA?

Most FSAs cover eligible expenses for you and all of your dependents, even if they’re not covered under your primary health plan. For more specific coverage details, please refer to your employer’s Section 125 document.

How do I determine the date my FSA expenses were incurred?

Expenses are incurred at the time the medical, dental, or vision care was provided, not when you are invoiced or pay the bill.

How soon can I start spending my FSA funds?

With a healthcare FSA, your entire annual election amount is available on the first day of the plan year even though you haven’t yet contributed that amount.

What is the deadline for submitting claims?

You can submit claims for reimbursement at any time during the same plan year that you incur the expense. You may also have a run-out period at the end of the plan year. Check the summary plan document your employer provided.

Are over-the-counter medications eligible for reimbursement from a FSA?

Yes, over-the-counter medications are an eligible expense. An OTC medication is a product with an active drug ingredient. A few of the most common items are pain relief medication, cold and flu products, allergy products, and heartburn medication. You can find a comprehensive list on the FSA Store website.

How do I contribute money to my LPFSA?

Your annual election will be divided by the number of pay periods in your plan year. This amount will be deducted from your paycheck before taxes are assessed.

Who is eligible under an LPFSA?

Most LPFSAs cover eligible expenses for you and all of your dependents, even if they’re not covered under your primary health plan. For more specific coverage details, please refer to your employer’s Section 125 document.

How do I determine the date my LPFSA expenses were incurred?

Expenses are incurred at the time the dental or vision care was provided, not when you are invoiced or pay the bill.

How do I get the funds out of my LPFSA?

If you have a benefits debit card, simply swipe it at the register. Otherwise, just file a claim online, be sure to include the receipt documenting the patient, provider, date and type of service, and cost. Once approved, your reimbursement will be direct deposited into your bank account.

How soon can I start spending my LPFSA funds?

With an LPFSA, your entire annual election amount is available on the first day of the plan year even though you haven’t yet contributed that amount.

Can I change my election amount mid-year?

Elections can only be altered if you experience a change in status as defined by IRS regulations, such as a marriage, divorce, birth, or death in your immediate family.

How do I contribute money to my DCA?

Your annual election will be divided by the number of pay periods in your plan year. This amount will be deducted from your paycheck before taxes are assessed.

How do I use the funds in my DCA?

If you have a benefits debit card and your care provider accepts credit cards, you may pay directly from your account. Otherwise, simply pay out-of-pocket and then file a reimbursement claim online with your expense documentation. 

The IRS requires appropriate documentation for all Dependent Care FSA reimbursements. When submitting a claim for reimbursement from your Dependent Care FSA, you will need to send one of the following:

  • A completed Dependent Care Claim form that your provider signs. The form must include:
    • Date(s) of service- The paid date may or may not be the same as the date of care; the date of care is required.
    • Dependent’s name
    • Description of service(s)
    • Dollar amount
    • Provider’s name, address, and tax ID or Social Security number

                 *You don’t need to include additional documentation if your dependent care provider signs the DCA Claim form.

  • An itemized statement or invoice from your daycare provider that includes:
    • Date(s) of service- The paid date may or may not be the same as the date of care; the date of care is required.
    • Dependent’s name
    • Description of service(s)
    • Dollar amount
    • Provider’s name, address, and tax ID or Social Security number

                 *Handwritten information, copies of canceled checks or credit card receipts will not suffice. If your daycare invoice or statement does not include all of the required                    information, you must complete the Dependent Care Claim form and have your provider sign.

I’m pregnant. Can I start my DCA with the intent to use the funds for my baby’s child care?

It’s best to wait until you have the child to start funding a DCA.

What happens to my DCA if my employment is terminated?

Participation in your DCA is also terminated. This means that only expenses that were incurred prior to your termination date are eligible for reimbursement.