Flexible Spending Accounts

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 Las Sendas #2 286

The City of Mesa has contracted with a third party administrator ConnectYourCare (CYC), to deliver our Flexible Spending Account (FSA) program.  Members may contact CYC customer service 24 hours a day 7 days a week via phone or by visiting the member portal. The portal can be used to view the status of your claims submissions, account balances and a host of helpful health and dependent care related information.

FSA Contact Information/Claims Address:

FSA Plan administered by:
Address:
Customer Service Number:
FAX Number:
Website:
Email:
ConnectYourCare (CYC)
PO BOX 622337, Orlando, FL 32862-2337
1.844.226.1872
1.866.879.0812
www.connectyourcare.com
service@connectyourcare.com

FSA Highlights:

The City of Mesa Flexible Spending Plan offers you the opportunity to set aside pre-tax dollars from your paycheck to pay for either health care or dependent care (child or elder care) expenses that would normally be paid out of pocket.  Enrolling in the flexible spending account program reduces your taxable income. 

When enrolling in the Flexible Spending Account(s), especially for the first time, estimate eligible expenses carefully. This is a use it or lose it program. However, there is a $500 Rollover plan feature on the health flexible spending accounts. With this feature you can rollover up to $500 of your unclaimed balance to the following plan year, in addition to whatever you have elected for that plan year. This $500 will not be subject to the "use-it-or-lose-it" rule from year to year, however any other balances will be.

Any money left in the account after the 90-day deadline (January 1 thru March 31) will be forfeited to the Employee Benefit Trust Fund. 

Note that IRS regulations require re-enrollment into the FSA each year during Open Enrollment.  In other words, if you intend to participate and contribute towards a health and/or dependent care FSA for the following calendar year, you MUST enroll during Open Enrollment, otherwise your elections will default to $0 starting on January 1. 

Participants may not seek reimbursement for health care or dependent care (child/elder care) expenses for Committed Partner or Committed Partner children/elders under FSA accounts.

Health Flexible Spending Account

The Health Flex plan allows you to set aside up to $2,600 pre-tax from your paycheck to pay for eligible out-of-pocket health care expenses that are not covered by your insurance.  It covers not just your medical expenses, but also the expenses of your spouse and dependents. Depending on your tax bracket, you may save up to 30% or more in taxes.

Examples of these reimbursable expenses include:

  • Deductibles
  • Coinsurance
  • Copayments
  • Certain items not covered by insurance

The following example illustrates how an employee who earns $35,000 a year with $1,500 in eligible healthcare expenses could save money using an FSA:

  With FSA
Without FSA
Annual Pay
$35,000
$35,000
Pre-Tax Contribution to FSA
 - $1,500
 - $0
Taxable Income
 = $33,500
 = $35,000
Federal Income & Social Security Taxes
 - $7,362
 - $7,852
After-Tax Dollars Spent on Eligible Expenses
 - $0
 - $1,500
Spendable Income
 = $26,138
 = $25,648
Tax Savings with FSA
 *$490
$0

*Actual savings will vary based on the individual tax situation

Dependent Care Flexible Spending Account

The Dependent Care Flex Plan allows participants to set aside up to $5,000 per household to pay for eligible child or elder care services that are needed so that the participant and spouse (if applicable) can work. Once a qualifying child care expense is incurred, the receipts may be submitted to CYC for reimbursement from the dependent care account.  All claims will be reviewed for eligibility and accuracy.  Reimbursements made from this account will be equal to the amount of the claim, but not more than the current balance in the dependent care account.  This account is for day care expenses ONLY. Dependent medical/dental/vision expenses are not reimbursable through the dependent care flex account.

Examples of dependent care arrangements which qualify include:

  • A Dependent (Day) Care Center, provided it complies with applicable state and local laws if care is provided by a facility for more than six individuals
  • An educational institution for pre-school children
  • For school-age children (Kindergarten through age 12), only expenses for before and after school care are eligible. Tuition fees do not apply
  • An "individual" who provides care inside or outside your home (who is not your spouse, child under age 19 or anyone you claim as a dependent for federal income tax purposes).

FAQs

  • How do I register online with CYC?
  • Can I use my health care debit card to pay for services incurred in the previous plan year?
  • I used my debit card at the doctor's or dentist's office, a qualified merchant, but I was still required to submit substantiation - why?
  • What if I don't submit substantiation for my claim?
  • What information needs to be included for substantiation of claims?
  • I received a notification stating I need to submit substantiation for a claim...now what?
  • How does Orthodontia (braces) reimbursements work?
  • How does the $500 rollover feature work after the new year?
  • What is the $500 rollover feature?
  • What are examples of eligible dependent care expenses?
  • What are examples of eligible health FSA expenses?
  • How do I submit FSA claims?
More FAQs