You save money — as shown in the Examples of tax savings using the Plan— by using pre-tax dollars for unreimbursed, out-of-pocket medical, dental, and vision expenses. You cannot be reimbursed for amounts paid by any insurance provider or health care plan.
You may claim reimbursement of eligible health care expenses for your family members even if they are not covered under ExxonMobil's medical, dental or vision plans. Your dependents for the purposes of the HCFSA include:
- Your spouse.
- Anyone whom you can claim as a dependent for income tax purposes.
- A child who would otherwise qualify but you cannot claim as a dependent for income tax purposes because you do not have custody.
You may elect to contribute up to an amount determined by the Administrator-Benefits not to exceed the limit set forth by the Internal Revenue Service for any given taxable year to the HCFSA for the plan year. If you and your spouse both work for ExxonMobil:
- Each of you can enroll in this account up to the $2,850 limit — a total of $5,000 for your family
- You may file claims as an employee or as a dependent of another employee participating in the Plan, but you may not be reimbursed for more than 100% of your out-of-pocket expenses.
You can contribute up to $2,850 a year on a pre-tax basis. You may use your account for out-of-pocket expenses not covered or not fully reimbursed by any health plan.
Availability of funds
Although your election directs funds to this account on a monthly basis, your total projected plan year contributions are available to reimburse you for expenses incurred from the beginning of the plan year. Participants may carryover up to the amount determined by the Administrator-Benefits not to exceed the limit set forth by the IRS for any given taxable year of any remaining unused health care flexible spending account funds to the immediately following plan year. The carryover applies to any unused funds in your Health Care FSA at the end of the plan year, as long as you are an employee as of January 1 of the following plan year.
You can roll over a maximum of $570 in unused funds from 2022 to 2023.
Charges spanning more than one plan year
If doctors require payment in advance for services rendered during more than one plan year, ask them to specify the dates services were rendered and the charges for those services. With adequate documentation, you may be reimbursed for expenses incurred for services provided during the plan year. Prescription reimbursement is based on the fill date and not the pick-up date. Orthodontia, however, is treated differently. Reimbursement is based on your treatment plan, not your payment schedule, even if you pay the total cost in advance.
Orthodontia is unlike most other kinds of health care treatment because:
- It usually spans more than one plan year, and
- Frequently the length of treatment is different from the payment schedule.
Initial Banding Fee Reimbursement: Depending upon available FSA funds and amounts paid by the dental plan, if you pay orthodontic charges in full on the date of banding, you will receive up to 25% of the allowed amount as an initial banding fee reimbursement. If you make an initial banding fee payment (down payment), you will be reimbursed up to the total amount paid. If no banding fee is indicated on the claim or you did not make an initial banding fee payment, you will be reimbursed up to 25% of the allowed amount.
Contact Aetna when estimating your annual orthodontia election.
Only qualified medical expenses for services while you are a participant are eligible for reimbursement. These expenses include your deductible, co-payments and other out-of-pocket expenses under your group health plans. The calendar year in which a qualified medical expense may be reimbursed under the HCFSA is determined by when the expense is incurred not when you pay the expense. This is consistent with the ExxonMobil Medical Plan and ExxonMobil Dental Plan.
Visit payflex.com to learn about eligible health care expenses. You can also use the search bar to find specific items and services.
Be sure to budget carefully, up to $570 of carryover is allowed for the Healthcare Flexible Spending Account, however, any other unused amounts must be forfeited.
Expenses not eligible for reimbursement
Visit payflex.com to identify expenses that are not eligible for reimbursement. You can also use the search bar to find specific items and services.
Tax-deductible vs. tax-free
If you itemize on your federal tax return, you have a choice about the tax treatment of your health care expenses:
- If you itemize your deductions the federal government offers a federal income tax deduction for unreimbursed eligible health care expenses that exceed a stated percentage of your adjusted gross income. Tax laws determine what this percentage will be. See the IRS web site for more details (www.irs.gov).
- The HCFSA offers tax-free reimbursement from the first dollar of your eligible expenses (maximum $2,850) even if you don't itemize.
Many people find the HCFSA offers a greater advantage. However, because tax laws are complicated and change from time to time, you should consult your personal tax advisor to find out which approach is best for you. You cannot claim a tax deduction on expenses reimbursed to you from the spending account.