Frequently Asked Questions
There have been a lot of changes during this past year as the nation deals with COVID-19. This list will hopefully help you find the answers you need regarding your health accounts and the recent changes.
If you have additional questions, please Contact us.
What does the Consolidated Appropriations Act 2021 (the "CAA") mean for my Health Flexible Spending Account (Health FSA) and Dependent Care Flexible Spending Arrangement (DCFSA)?+
The CAA, signed into law on December 27, 2020, includes several provisions that provide temporary relief for health FSAs and DCFSAs. These include extended grace periods, increased carryover amounts, and the ability to make mid-year election changes.
When will these changes take effect?+
The changes are effective for plan years ending in 2020 and 2021. Your employer must adopt these changes for them to apply to your plan.
Do I need to do anything to take advantage of the relief offered by the CAA?+
Check with your employer or plan administrator to see if your plan has adopted any of the relief provisions. You may need to make new elections or take other action depending on the specific provisions adopted.
Are hand sanitizers, face masks, and sanitizing wipes considered qualified medical expenses?+
Yes. As part of IRS guidance issued in response to the COVID-19 pandemic, personal protective equipment (PPE) such as masks, hand sanitizer, and sanitizing wipes purchased for the primary purpose of preventing the spread of COVID-19 are considered qualified medical expenses.
Can I use a Health Savings Account (HSA) or other health account funds to pay for COVID-19 treatment or testing?+
Yes, COVID-19 testing and treatment are qualified medical expenses that can be paid for or reimbursed from an HSA, FSA, or HRA.
Do we anticipate disruptions to regular service due to COVID-19? Can I still make claims and access funds?+
HealthEquity continues to operate and process claims. You can access your account online or through our mobile app to submit claims, check balances, and manage your account.
Does the CARES Act allow me to change my Health FSA election?+
The CARES Act itself does not require employers to allow mid-year election changes for health FSAs. However, subsequent IRS guidance has given employers the option to allow mid-year changes for the 2020 and 2021 plan years.
Can I change my Health FSA elections if I am furloughed?+
A furlough may qualify as a change in status event that allows you to make a mid-year election change. Check with your employer or plan administrator for your plan-specific rules.
