Q1: Are HCSA reimbursements taxable?
Reimbursements from an HCSA for eligible medical expenses are considered tax-free for the employee.ÌýThis means the employee doesn't have to report the reimbursement as income on their tax return.Ìý
Q2: Will FAUW members receive another $300 HCSA effective May 1, 2026? And each May 1, thereafter?
The allocation is $300 on May 1, 2025, and $300 on May 1, 2026, as per the arbitrated settlement award. We don’t know at this point whether that dollar amount will change for subsequent May 1 allocations – that will need to be established through future salary settlements or other agreements/arrangements.
Q3: Is there a deadline to use the funds?
Yes, HCSA balances are forfeited if unused in a two-year period. Any remaining HCSA balance from the May 1, 2025 allocation will be forfeited on May 1, 2027, and any remaining HCSA balance from the May 1, 2026 allocation will be forfeited on May 1, 2028, and so on.
In addition, please be mindful of GreenShield’s claims submission period – claims need to be submitted during the May to April Benefit Year in which they are incurred, plus the 60-day grace period. Or, if you are no longer participating in the University of À¶Ý®ÊÓƵ’s benefits program, you need to submit any HCSA claims to GreenShield within 30 days from your last date of coverage.ÌýÌý
Q4: What happens if I choose to terminate my employment mid-year?
Eligible expenses incurred prior to employment termination are eligible for reimbursement through the HCSA as long as they are submitted to GreenShield within 30 days of employment termination.ÌýÌý Ìý
Q5: What happens to my HCSA during periods of leave of absence?
As long as your extended health benefit is in place as an active employee, and you are a member of FAUW, you will have access to your HCSA for eligible expenses incurred during a leave of absence.
Q6: What happens to the HCSA balance (if any) at retirement?
Retirees are not eligible for the HCSA; it’s only available to active employees who are members of FAUW.
Claims incurred during employment but submitted for reimbursement during retirement will be eligible through the HCSA if received by GreenShield within the claim submission period. The claims submission period is the end of the Benefit Year (May – April) plus the 60-day grace period. Ìý
For example, if an eligible expense is incurred on June 10, 2025, and the FAUW member retires on July 1, 2025 (and has retiree extended health benefits coverage), the claim needs to be submitted to GreenShield before the end of June 2026.Ìý Ìý
Q7: Will those who are retiring May 1, 2025, simply not be entitled to the HCSA?
Correct, a FAUW member who retires on May 1, 2025 (i.e., last day of work April 30, 2025) and is in a retiree plan within GreenShield’s system on May 1, 2025, they will not have an HCSA.Ìý
Q8: What will happen with the HCSA balance (if any) for FAUW members who are retiring June 1, 2025, to April 1, 2026?
If a FAUW member has an HCSA, expenses incurred during employment will be eligible for reimbursement through their HCSA. Claims incurred during retirement are not eligible for reimbursement.
If a FAUW member has an HCSA on May 1, 2025, but then moves into the retiree extended health plan on June 1, 2025, they will be able to use their HCSA allotment for eligible expenses incurred in May 2025.ÌýIf a FAUW member has an HCSA on May 1, 2025, but then moves into the retiree extended health plan on April 1, 2026, they will be able to use their HCSA allotment for eligible expenses incurred between May 1, 2025, and March 31, 2026. Ìý
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