Do you participate in a Health Care Flexible Spending Account (HCFSA) or Dependent Care Flexible Spending Account (DCFSA)? If so, we have good news for you. Thanks to recent Internal Revenue Service (IRS) regulations, HCFSA and DCFSA participants now have more time to incur expenses and submit claims for reimbursement. Changes have also been made to the rollover limit for HCFSAs.

Penn’s plan year runs from July 1 to June 30. The money you contribute to your FSA during each plan year can only be used for eligible expenses incurred within certain dates. Effective May 12, 2020, those dates have changed, as listed in the chart below.

Additionally, the rollover amount for Health Care FSAs has been increased from $500 to $550 for the current plan year. If you have an unused balance below $550 at the end of the extension (December 31, 2020), that money will be carried over for the 2020-2021 plan year after January 31, 2021. If you have an FSA balance above $550, you will only roll over $550 and forfeit any surplus.

Changing Your Contributions

If you want to increase or decrease the amount you contribute to your FSA each month you can through Workday without declaring a specific life event. You can do this for the remaining pay periods in the current plan year and during the 2020-2021 plan year until December 31, 2020.

Please note, once you change your contribution you will only be able to incur claims for the new contribution amount based on the effective date of your change. For example, if you increase your goal from $1,500 to $2,000 on June 25, the additional $500 can only be used for claims incurred from June 25, 2020 to December 31, 2020.

If the amount you have contributed to your FSA has already been deducted from your pay, you will not be able to get a refund. For step-by-step instructions on how to make changes to your FSA contributions, review the Self-Service: 2020-Special Election Event tip sheet at www.workday.upenn.edu/docs/default-source/tip-sheets/self-service-2020-special-election-event.pdf

A New Eligible Expense

As a result of the recently passed Coronavirus Aid, Relief, and Economic Security (CARES) Act, you can now use HCFSA dollars to purchase Over the Counter (OTC) medications without a prescription, and feminine care products. Examples of OTC medications include aspirin, allergy medication, band-aids, ace bandages, and knee braces.

For more information about FSAs, visit the Flexible Spending Accounts webpage at www.hr.upenn.edu/PennHR/benefits-pay/health-life-and-fsa/health/flexible-spending-accounts/claiming-reimbursement-from-a-flexible-spending-account

—Division of Human Resources