You guys are right! I did some checking, and the exact words are: “Effective January 1, 2014, employees and employers will no longer be allowed to run Private Major Medical Health insurance premium thru the Private Premium account. This also applies to HRA and V.E.B.A. accounts.” And it does look as though we will be capped with medical expenses that we can run through..more information “to come from HR in an upcoming staff meeting.” It’s just one thing after another, and it’s so frustrating..no one knows what to expect! My husband’s employer insures my family, and they have their annual meeting in November, which is when we will all find out if the company will even offer health insurance next year, and if so..at what costs. When will this end?
Yeah!!!
I knwo its difficult but in the event of any confusion, misadvice, or potential problem the law is that the Summary Plan Documents rule. So if you think you are getting the wrong adive from HR, beleive me it happens, take the time and read the SPDs.
I spoke with one our consultants and they came up with one scenario that what you describe could happen. If you were enrolled in what the IRS classifies as a High Deductible Health Plan or HDHP then you would have access to an HRA or HSA which is like a flex account but survives the year and is portable, i.e. you can take it with you.
If you are eligible for an HRA/HSA account then you are no longer eligible for a traditional FSA account. You are only eligible for what is called a limited FSA. The Limited FSA can only be used to reimburse dental or vision expenses. Exactly what you were describing.
Best of luck to you and good job reading that SPD!