Dear GIC FSA Coordinators,

We would like to share a few important announcements that will impact how the HCSA/DCAP plans will be administered. In response to the ongoing COVID-19 pandemic, the IRS recently released the Consolidated Appropriations Act with updated guidelines for sponsors of Flexible Spending Accounts. The new guidelines allow the GIC’s enrolled participants greater flexibility and opportunity to use all or most of their funds that were contributed.

The GIC will be making the following changes to the FSA plans for FY2020 (07/01/19-06/30/20) and FY2021(07/01/20-06/30/21): 
Impact to the FY2020 (07/01/19-06/30/20) Plan Year
  • HCSA and DCAP Benefits
  • The deadline to incur expenses has been extended! Participants will now have until 06/30/21 to use their 2020FY funds for eligible services received through 06/30/21. They will now have until 7/31/21 to submit those claims for reimbursement.
  • DCAP Only – Dependent Age Allowance (FY2020 only)
  • Participants with an available balance that have dependents that are 13 will now be able to submit expenses to spend down their available balance.
  • As a reminder: virtual day camps are not an eligible expense.
  • Terminated Participants - nothing has changed.
  • HCSA participants, as always, can incur and submit expenses up to their election amount prior to their termination date. They have throughout the plan year and run out to submit eligible expenses.
  • HCSA participants that are eligible were offered the FSA COBRA option if they needed to continue the benefit to have access to these funds.
  • DCAP participants, as always, can spend down their contributed balance by incurring claims after their termination date and submitting throughout the plan year and run out. 
Impact to the Current FY2021 (07/01/20-06/30/21) Plan Year
Plan dates remain the same. The final service date is 09/15/21 and the final filing date 10/15/21

  • HCSA and DCAP Benefits
  • Election changes will be permitted for both plans on a prospective basis only without a qualifying event. This means that changes cannot be backdated up to 60 days without a corresponding qualifying event. A coordinator statement will be sufficient when approving these types of changes.
  • If the participant has experienced a qualifying event - current rules apply - they will need to submit the Status Change Request form within 60 calendar days of the event. Supporting documentation is required for approval.
  • If you have a participant who is currently enrolled in the DCAP benefit, and they only have children over the age of 12 -please have them submit a Status Change Request form as soon as possible in order to remove them from the plan.
  • Terminated HCSA Participants - New!
  • Terminated employees will have access to what they had contributed while active. 
  • They will be able to incur expenses with dates of service through 9/15/21 and submit those claims until 10/15/21 in order to spend down their available contributed balance.
  • Debit cards will be shut off once the termination is posted in our systems. Participants must submit via their portal, or by email using a claim form.
  • FSA COBRA will still be offered for those that are eligible for their full election.
  • Please ensure this is communicated with participants upon termination.
  • Terminated DCAP Participants - nothing has changed
  • Terminated participants can spend down only what they have contributed prior to their termination. Claims must be incurred prior to 9/15/21 and submitted by 10/15/21.

Reporting a Termination
There are two ways for a termination to be reported. Please report the termination as soon as possible. 

  • If the participant is still active -they will need to submit the Status Change Request form to report the upcoming termination. Once this form is submitted, you will receive a notification email with instructions on how to approve the submission. *Please remember, we will not make any changes until we receive your approval*
  • If the participant has already terminated -you can submit the Coordinator Termination form to report the termination. This form is only to be submitted if the termination has passed.
  • COBRA will still be offered for the HCSA if the participant has not overspent their account prior to termination.

Thank you,
Benefit Strategies, LLC