Healthcare Spending Account
Health Care Spending Account contributions are taken directly from your pay before federal, most state and city income and social security taxes are deducted.
The Health Care Spending Account allows you to pay for eligible health care expenses with pre-tax dollars. Health Care Spending Account contributions are taken directly from your pay before federal, most state and city income and social security taxes are deducted.
Reason for Policy
To set guidelines and procedures for employee’s use of a healthcare spending account.
Who Is Governed by this Policy
Faculty and Staff
Adelphi University employees may pay for certain IRS eligible healthcare expenses through salary reduction by electing to participate in the Health Care Spending Account (HCSA). Reductions occur before Federal and State income tax and FICA are computed.
All full-time employees are eligible to participate in the HCSA. New employees can elect to join on the first of the month following hire date or as of the first of the month if hire date is on the first. Continuing employees can elect to participate in the Health Care Spending during the annual enrollment period in November for a January 1st effective date. Employees enrolled will receive a debit card to use for eligible expenses.
This policy does not have definitions associated with it at this time. Upon periodic policy review this area will be evaluated to determine if additional information is needed to supplement the policy.
To enroll, employees make an annual election to participate and identify the amount of the contribution by completing the enrollment form and returning it to the Office of Human Resources. Election must be made during the first 30 days of eligibility for newly hired employees and during the annual enrollment period for current employees. The plan year is the 12-month period 1/1 – 12/31.
Employees may elect to contribute up to the annual IRS maximum (subject to change each calendar year). Employees may use the HCSA debit card for eligible expenses incurred by the employee and their dependents during a plan year.
Plan participants are granted a 2½ month grace period immediately following the end of the plan year to incur expenses in order to utilize unused balances as of December 31st. The effect of the grace period is that participants in the health care spending account will have until March 15th (the 12 months in the current cafeteria (Section 125) plan year plus the 2½ month grace period) to use the benefits of contributions for the plan before those amounts are forfeited under the use-it-or-lose-it rule. This grace period is subject to change annually.
If employment terminates during the plan year, all contributions to the spending account will cease, effective the date of termination. However, claims can be submitted for eligible expenses incurred up to the date of termination, through 60 days after termination date, or until there are no more funds in the account, whichever occurs first.
If participating in the HCSA at the time of termination, employees may elect to continue to participate in the HCSA under the Consolidated Omnibus Reconciliation Act (COBRA). If elected, contributions will be made to the plan on an after-tax basis which will allow former employees to submit claims for eligible expenses incurred during the remainder of the plan year.
Employees must be a participant in the plan through the end of the plan year (December 31) to be eligible to use the 2½ month grace period. Claims incurred during the plan year and during the grace period can be submitted up until March 31.
Forms are located on the Benefits page or in the Office of Human Resources.
For additional information, please refer to the Adelphi HCSA Summary Plan Description or the Office of Human Resources.
- Last Reviewed Date: September 17, 2018
- Last Revised Date: September 17, 2018
- Policy Origination Date: 2002
Who Approved This Policy
Karen Loiacono, Director of Total Rewards