Enrolling and Re-enrolling in the Flexible Spending Account (FSA) Program
Note: The maximum annual contribution amount for the Medical Care Assistance Plan (MCAP) is $2,500. The Dependent Care Assistance Plan (DCAP) maximum annual contribution is $5,000 per household.
The FSA Program is an optional tax-free benefit that consists of two plans. The Medical Care Assistance Plan (MCAP) allows employees to pay eligible out-of-pocket medical, dental and vision expenses that are not covered by insurance. The Dependent Care Assistance Plan (DCAP) allows employees to pay eligible child and/or adult day care expenses. You can choose either, or both, a Medical Care and a Dependent Care Assistance Plan (MCAP and DCAP).
During the annual Benefit Choice period, the Benefit Choice Options booklet is available online for employees outlining any changes that will occur to the State of Illinois FSA for the new plan year, July 1 through June 30. This may include changes to IRS requirements, processing of claims, and contribution amounts. Changes take effect the following July 1.
During this time, employees may join or make changes to the FSA program. Also, employees who are currently enrolled in the FSA must re-enroll during Benefit Choice for the following plan year. Employees must enroll each year to take advantage of this benefit, even if they are currently enrolled in the program. Enrollment and re-enrollment may only be done online through NESSIE, by selecting the link at the top of the Benefits Choice page.
Dependents do not need to be enrolled in your health/dental plan to be eligible for participation in the FSA MCAP program.
FSA MCAP - There are changes to the Medical Care Assistance Plan (MCAP) for the FY15 plan year. The MCAP grace period is being eliminated for FY15, but any MCAP balance up to $500 remaining after September 30, 2015 will automatically be carried over the next plan year’s MCAP account. This carryover could result in an MCAP account of $3,000 for the FY16 plan year. Even if you do not make an election for the next plan year, you are still eligible to use carried over funds.
FSA DCAP - When determining a deduction amount for DCAP, keep in mind that if you do not incur enough eligible out-of-pocket dependent care expenses (daycare fees, after school care, or elder care) during the plan year (July 1 - June 30), any unused balance will be forfeited. See the State of Illinois FSA Booklet below for eligibility information.
For further information on the FSA program, please see the State of Illinois FSA Booklet.