FSA Program Requires Re-enrollment

While FEHB and FEDVIP coverage continue year-to-year if an enrollee makes no changes—only a few percent change plans each open season—re-enrollment is required each year in another program affected by the open season, the flexible spending account program. The annual minimum to be designated from payroll withholding for both dependent care and health care accounts is falling from $250 to $100, while the maximums are remaining the same–$5,000 in the former, $2,500 in the latter. Another change is that in health care accounts, there will no longer be a grace period effective with 2015 plan year accounts, and instead money unspent in a plan year up to $500 can be rolled over into the following year, so long as the employee has an account in that year. The grace period policy will continue to apply in dependent care accounts(and continues to apply for 2014 health care accounts). Under that policy, expenses incurred through 10 weeks of the following year can be charged against a plan year.