Vendor Update - Optum Financial
ConnectYourCare is now part of Optum Financial. Optum Financial will replace the ConnectYourCare name and brand throughout the member experience.
- Customer service offerings will remain the same.
- Payment cards will not be reissued - use the same card until it expires.
- Use the same online account and mobile app to manage your account
A Limited Purpose Flexible Spending Account (LPFSA) is a pre-tax benefit used to pay for eligible dental, vision care and post-deductible medical expenses for participants enrolled in a High Deductible Health Plan (HDHP). You may use these funds to pay for eligible expenses incurred by you, your spouse and your qualified dependents.
What are the benefits?
- The LPFSA is used to pay for eligible vision and dental expenses that are not covered by your insurance.
- It can also be used to pay for eligible post-deductible medical expenses.
- Pre-tax contributions reduce your taxable income.
- Easiest way to pay for everyday out-of-pocket eligible dental, vision and post-deductible medical expenses, with tax-free money.
- Your total annual LPFSA contribution amount is available immediately at the start of the plan year.
- You can carry over up to $550 remaining in your account from one plan year to the next, so there is minimal “use-it or lose-it” risk.
- Multiple self-service tools available to easily manage your LPFSA and payment card transactions.
How does it work?
- The LPFSA is similar to the regular Health Care FSA but is designed to work in conjunction with your HDHP and Health Savings Account (HSA).
- Use the tax-savings calculator or annual expense estimate worksheet to help determine how much you should contribute per year.
- Your annual contribution is deducted pre-tax from your paycheck in equal amounts throughout the plan year and deposited into your LPFSA.
- As eligible expenses are incurred, you can either use your payment card to pay at the point of purchase or submit a request for reimbursement.
- Manage your account 24/7 via the Optum Financial/myCYC mobile app or CYC Online account.
To be eligible, you must be enrolled in a High Deductible Health Plan (HDHP) and participate in a Health Savings Account (HSA).
- Employees who are not enrolled in the HDHP.
- Employees who are classified as fellows, scholars and research assistants in the University of Wisconsin System, as well as limited term employees, student hourlies, per diems and other temporary employees.
- If you are not enrolled in an HDHP, see the regular Health Care Flexible Spending Account for benefit options.
*The $2,750 contribution limit applies on an employee-by-employee basis. Thus, $2,750 is the limit each employee may make per plan year, regardless of the number of other individuals (spouse, dependent, etc.) whose medical expenses are reimbursable under the employee’s Limited Purpose FSA (LPFSA). If two spouses are eligible for a LPFSA, each spouse may elect to make contributions of up to $2,750 to his or her LPFSA, even if both participate in the same LPFSA sponsored by the same employer.
- For 2020 benefit period, you must incur all eligible expenses by December 31, 2020.
- For 2021 benefit period, you must incur all eligible expenses by December 31, 2021.
- For 2020 benefit period, you must submit all reimbursement requests by March 31, 2021.
- For 2021 benefit period, you must submit all reimbursement requests by March 31, 2022.
Review all claims and provide any required substantiation by December 31 each year.
An eligible expense is a dental or vision service, treatment or item the IRS states can be paid for without taxes.
After you meet your health plan’s deductible, you may be reimbursed for all eligible medical expenses, such as copayments, physical exams and vaccinations. To pay for post-deductible medical expenses using the payment card, you must meet your deductible and complete an attestation agreement.
Eligible expenses can be incurred by you, your spouse or qualified dependents.
How should I keep track of my eligible expenses?
You should keep all your receipts and pertinent documentation to prove your LPFSA was used for eligible dental, vision or post-deductible medical expenses.
If you pay for anything other than eligible expenses with your LPFSA, the amount will be taxable, and you will be required to repay the amount or pay an additional tax penalty.
Learn how to enroll in an a pre-tax savings/employee reimbursement account, whether you are enrolling during open enrollment, as a new hire or when you have experienced a qualifying life event.Read More about Enrollment Information
You will receive a welcome brochure in the mail from ConnectYourCare.