The Consolidated Appropriations Act of 2021 (CAA), which was signed into law on December 27, 2020, included a variety of changes affecting group health plans, cafeteria plans, and retirement plans. The University has adopted optional changes that affect the health care flexible spending account (FSA).
Changes to Health Care Flexible Spending Accounts
The optional changes that the University adopted with regard to the health care FSA include:
Unused amounts exceeding the allotted $550 rollover at plan year-end are generally forfeited by employees and not carried over to a later year. Under the CAA, there is a temporary ability to carryover unused amounts for health care FSAs from the plan year that ended in June 30, 2020 (FY 20) to the current plan year ending June 30, 2021.
In addition, there is also a temporary ability to carryover unused amounts for health care FSAs for the plan year ending June 30, 2021 into the plan year beginning July 1, 2021.
At the end of the plan year ending June 30, 2022, rollover amounts will revert back to the previous limit of $550 and anything exceeding that will be forfeited.
Accounts do not have to be active to access the rollover funds.
Outside of the annual open enrollment period, changes to flexible spending accounts can only be made if you experience an IRS qualified status change. No mid-year changes are permitted to elected amounts outside of these events due to federal regulations.
For Additional Questions
If you have additional questions about these changes to the health care FSA, please contact the OHR Benefits Department by submitting an online inquiry or by calling 833-852-2210. You can also contact UPMC Benefit Management Services by calling 1-800-499-6885 or by emailing firstname.lastname@example.org