Health Care Reimbursement Accounts
The CSU Health Care Reimbursement Account is a voluntary benefit for eligible employees that offers significant tax advantages and could increase an employee's take home pay. The plan allows for the reimbursement of out-of-pocket health expenses from money deducted from an employee's paycheck before federal, state and FICA taxes are deducted. Taxable income on an employee's annual W-2 statement will be reduced by the amount placed in the account.
Expenses eligible to be reimbursed from the CSU Health Care Reimbursement Account are expenses incurred by an employee, employee's spouse, and dependents (including domestic partner) for the diagnosis, cure, treatment or prevention of disease, and for treatments affecting any part or function of the body. The expenses must be to alleviate or prevent a physical defect or illness. Expenses solely for cosmetic reasons or expenses that are merely beneficial to a person's general health are not reimbursable. For general information, refer to IRS Publication 502 (Medical and Dental Expenses)
Employees may contribute any amount from a minimum of $20 per month ($240 annually), up to a maximum contribution amount of $216.66 per month ($2,600 annually). An after-tax administration fee of $1.00 is deducted from each pay warrant in which there is a monthly HCRA contribution.
Claims reimbursements are processed daily.
For additional information regarding the HCRA plan, please refer to ASI's Online Customer Service Center, the Health Care Reimbursement Account Brochure, Administrative Guide, ASI Flex Direct Deposit Application, Optional FSA Debit Card for HCRA Plan Participants Application Form, and/or appropriate CSU Technical Letter(s).