Health Care FSA FAQs

A Health Care FSA lets you cover eligible health care expenses with before-tax dollars, reducing your taxable income. You can contribute to a Health Care FSA if you elect the EPO Option or if you have waived Liberty Health Plan coverage and are not enrolled in a High Deductible Health Plan elsewhere.

You can access your elected contribution amount for the year, despite the funds in your Health Care FSA. 

Liberty has a run-out period, which means Health Care FSA participants have until March 31st of the following plan year to submit claims incurred for the previous plan year.

Liberty also has a rollover feature. Participants can roll over $50 up to $550 of any remaining account balance to be used in the next plan year.

Liberty offers two types of flexible spending accounts: A Health Care FSA and a Dependent Care FSA.

• A Health Care FSA can cover medical, prescriptions, hearing, dental or vision expenses that you would otherwise pay for out-of-pocket. Common qualified expenses that a Health Care FSA will usually cover include the deductible, coinsurance or copayment amounts for your health plan, eyeglasses or contact lenses, dental work and orthodontia, medical equipment, hearing aids, and chiropractic care. Many over-the-counter drugs, such as cold and allergy medicines, and pain relievers and antacids, can also be reimbursed through a Health Care FSA with a doctor’s note/letter of medical necessity. For a list of eligible expenses please, see the IRS Publication 502. The full amout you elect to contributions in a Health Care FSA is available at the start of your plan year.
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• A Dependent Care FSA covers employment-related day care expenses for child or disabled dependent care. Eligible dependent care expenses must be for services that allow you to be able to work. Typical eligible expenses under this account include charges for day care, nursery school and elder care (though not if it is for medical care) for your legal tax dependents. The Dependent Care FSA funds are avilable as deductions are deposited in the account.

• Your contributions are before-tax or tax-deductible.*
• Tax-free withdrawals are made to pay your out-of-pocket expenses related to health care.
• Because of these tax advantages, the more you use your Health Care FSA, the more money you could save. The amount of savings will depend on your personal tax rate.

*Contributions are tax-deductible on your federal tax return. Some states do not recognize FSA contributions as a deduction. Consult a qualified tax adviser for advice.

The biggest advantage is having funds available tax-free to cover eligible health care expenses.  Every dollar you set aside in your account reduces how much you pay in income taxes. Plus, you can be reimbursed for eligible expenses that you are already paying for.

• Funding. You will contribute a pre-determined amount to your account. Your funds will be available for use on the first day of your plan year.
• Accessing funds. When you have eligible health care expenses, pay for them with your Optum Bank debit Mastercard®, or pay out-of-pocket and request reimbursement online. Remember to always keep your receipts.
• Requesting reimbursement/substantiating purchases. It’s quick and easy to request reimbursement for eligible expenses paid using personal funds, or to submit documentation for card purchases. Uploading required documents is easy with our online and mobile applications. Please remember that credit card receipts, non-itemized cash register receipts and cancelled checks are not acceptable forms of documentation. Always request an itemized receipt or EOB from your health care provider or merchant.

• Claims processing. We will promptly process your request and reimburse you either by check or direct deposit if you sign up for that feature.
• Account management. Sign in to your online account or the mobile app to check your account balance, set up your family profile, add a bank account to enable faster reimbursements, or request a debit card in a dependent’s name.

Eligible health care expenses can be found in IRS Publication 502.

Due to frequent updates to the regulations governing FSAs and HSAs, this list does not guarantee reimbursement but, instead, is to be used as a guide for the submission of claims.

Certain qualifying events allow employees to increase/decrease their election or begin/cease participation in a plan. Common qualifying events include marriage, divorce, birth, death.

The adjustment to the election must be consistent with the event. 

Please refer to your employer’s summary plan description for further guidance on qualifying status change events applicable to your plan.

Your Optum Bank debit Mastercard® can be used at health care–related merchants, such as hospitals and vision providers, dental and doctor’s offices. It can also be used at drugstores, pharmacies and grocery stores that have implemented the IIAS (Inventory Information Approval System) or certified 90 percent of their gross sales are FSA eligible.

As always, save itemized receipts, bills or statements any time the debit card is utilized.

The Optum Bank debit Mastercard® may also be used at day care providers that accept Mastercard® or Visa® and have a valid merchant category code signifying they are a day care provider. The Optum Bank debit Mastercard® may not be used if you pre-pay day care expenses, since the IRS requires the expense must be incurred before reimbursement can be made from your dependent care spending account.

If you do not use your Optum Bank debit Mastercard®, you may file claims for reimbursement in two ways:

• File an online claim. First, sign in to your account. Click on the "file a claim link" in the "I want to" section on your home page and walk through the steps to enter the details of the claim. Once you have filed your claim, you must agree to the terms and conditions and click the "Submit" button. To complete the reimbursement process, send your confirmation page along with your supporting documentation to us.  Or do the same process on the app. It generally takes two to five business days to process your claim.  After that, generally, another three-to-four business days to receive funds electronically or seven to ten business days to receive a paper check in the mail. To learn more about how to file a claim online, watch our "How to file a claim video". 
• File your claim using the FSA reimbursement request form (see Forms on our website). Follow the provided instructions to complete this form. Claims and copies of your supporting documentation can be submitted via email, fax or mail.

Email:	optumclaims@prod.sourcehov.com
Fax number:	1-855-244-5016
Mail:	Optum Bank
	PO Box 30516
	Salt Lake City, UT 84130

Federal regulations require Optum to obtain itemized receipts for transactions that are not automatically substantiated at the point of sale.

Card transactions can be automatically substantiated without additional paperwork if they are:

• Copayment amounts tied to your health plan. These amounts need to be communicated to Optum by your employer.
• Transactions that match the provider and dollar amount exactly for previously approved transactions (e.g., orthodontia claims, maintenance prescription drugs) and were noted by you as recurring on the request for substantiation notification.
• Purchases made at merchants using the Inventory Information Approval System (IIAS).
• If the claim file received by the insurance carries does match the debit card purchase.  

In the event a charge does not meet these four criteria, Optum will send three requests for documentation approximately 60 days from the date of the transaction of the debit card.

Should a charge remain unsubstantiated 60 days from the date of the first documentation request, the benefits payment card will be placed in a temporary hold status. The payment card will be reactivated as soon as the necessary documentation has been received to substantiate the expense.

To ensure efficient processing, include the proper form or letter along with your documentation.

This can be submitted via email, fax or mail.

Email:	accountholderservices@optum.com
Fax number:	1-855-244-5016
Mail:	Optum Bank
	PO Box 30516 Salt Lake City, UT 84130

Participation in the Health Care FSA ends if you terminate employment. This means only expenses incurred prior to the date your participation in the plan ends are eligible for reimbursement. Claims for expenses incurred prior to the plan termination date must be submitted within the run-out period.

Liberty's run-out period gives participants until March 31st of the following plan year to submit claims incurred for the previous plan year. 

The “run-out” is a specified period of time after the end of the plan year, or following your termination in the plan, in which you may continue to submit claims incurred during your period of coverage. This is not a period when you are able to continue to incur new expenses, but rather it allows you time to gather and submit expenses before your funds are forfeited.

Liberty has a run-out period, which means Health Care FSA participants have until March 31st of the following plan year to submit claims incurred for the previous plan year.

Liberty also has a rollover feature. Participants can roll over $50 up to $550 of any remaining account balance to be used in the next plan year, unless you enroll in CDHP Option 1 or 2.

A service or expense must be incurred before it is eligible for reimbursement. A Health Care FSA expense is considered “incurred” when the service is performed, not when you pay for the service. In addition, the service must be performed during your participation in the plan. Services or expenses incurred before or after your plan participation dates do not qualify for reimbursement.

Please follow these steps to access your account online:

1. Go to the home page at optumbank.com/liberty.
2. If you are an existing account holder, click the "sign in" button found on the top left side of the page.
3. If you are a new account holder, select the option to Register for site access.
4. If you forgot your username, click the “Forgot username” link.
5. If you forgot your password, click the “Forgot/Change Password” link.

Due to HIPAA regulations, Optum cannot disclose your personal health information (PHI) to any unauthorized representatives.

To authorize an individual or entity to discuss your account detail, complete the authorized release form. 

1. Sign in to your account online to access the authorized release form. 
2. Click on "Help & Tools" from the main menu bar.
3.  Select "Forms and documents."
4. Select "Authorization for Release of Personal Information." Complete this form to authorize the release of personal, individually identifiable information on your account to others.

Generally speaking, money remaining in your Health Care FSA at the end of the plan year will be forfeited. This is commonly known as the “use-it-or-lose-it” rule.

Liberty has a run-out period, which means Health Care FSA participants have until March 31st of the following plan year to submit claims incurred for the previous plan year.

Liberty also has a rollover feature. Participants can roll over $50 up to $550 of any remaining account balance to be used in the next plan year provided the participant is not enrolled in a High Deductible Health Plan in the next plan year.

Be sure to check your specific plan rules in your summary plan description (SPD) by contacting the Liberty Benefits Center or requesting additional details from Optum Consumer Services.

Liberty Benefits Center
1-800-758-4460, Monday - Friday 8:30 a.m. - 8 p.m. ET.

To order additional cards for your spouse and eligible dependents, sign in to your account. In the “I want to” section, click “Manage debit cards.”