FlexOptions Health Flexible Spending Account (HFSA)

Convenient, Cost-Effective, Easy to Use.

How Does It Work?

Health Flexible Spending Accounts (HFSA) provide significant tax savings by reducing employees’ taxable wages through pre-tax contributions. It allows employees to set aside money for out-of-pocket medical expenses incurred by themselves, their spouses or dependents. As an employee self-directed plan, employees decide how much of their salary should be set aside before taxes are calculated, up to the limit specified by the employer. The requested amount is then deducted from their paychecks every period and set aside for medical expenses.

Covered Expenses Include:

Administration Made Simple.

CoPower provides employers with the claims substantiation and administration required to stay in compliance with federal laws. Employees must submit receipts to CoPower Financial for validation, but the CoPower prepaid card eliminates reimbursement waiting periods by paying for qualified expenses instantly!

CoPower Benny^® Prepaid MasterCard^® Card Available.

Participants can use Benny, the CoPower prepaid MasterCard card, to pay for medical services at an eligible provider’s office, pharmacy or lab! The CoPower prepaid MasterCard card offers easy access to HFSA balance, no reimbursement waiting periods, and ease of use at eligible provider locations to pay for qualified medical expenses instantly.

Use the CoPower Prepaid Card at Selected Merchant Partners—
Reduce the Need for Receipts!

Participating employees can purchase FSA-eligible Over-The-Counter (OTC) medications and other healthcare and general items at 1-800-Contacts, Walgreens, and Sam’s Club, virtually eliminating the need to provide receipts and be reimbursed. Employees simply need to present their CoPower Benny card to pay for their HFSA-eligible expenses, and another form of payment for ineligible expenses. No receipts are required for the amount paid by the CoPower Benny card!

Online Ordering Has Never Been Easier.

CoPower and Evolution Benefits have partnered with drugstore.com™, Walgreens.com, and VisionDirect.com to offer an online HFSA pharmacy store that automatically substantiates claims for over-the-counter items!

• Eligible purchases made with the prepaid card will automatically be deducted from your HFSA account
• Choose from over 2,000 clearly marked HFSA-eligible items

Stay in Compliance.

Key rules that govern HFSAs include:

• Plan document, Summary Plan Description and Non-Discrimination testing

• Use or lose it—Any HFSA funds that have not been claimed within 90 days after the end of the plan year are forfeited to the employer.

• Uniform coverage—The full annualized amount of an employee’s contribution to an HFSA must be available at the beginning of the plan year.

• Claims Substantiation—All reimbursed costs must have been incurred within the plan year, and claims for medical expenses must be filed within 90 days of the end of the plan year. Claims must include documentation including service date, description and charges.

• Grace Period—Employers now have the option of adopting the Grace Period, which allows employees to use remaining balances in the prior plan year to pay for expenses incurred up to 75 days in the new plan year.

• HFSA Rollover to an HSA – The IRS allows a one time rollover from an HFSA to an HSA under certain conditions. CoPower can facilitate the rollover with the employer and employee to meet all necessary IRS guidelines.

This is based on a federal tax bracket of 25% and FICA at 7.65%.

Savings Really Add Up with the HFSA!*
For every employee that contributes $100 per month to their HFSA, they save $432 per year in payroll taxes and save their employer almost $100 per year in FICA taxes!