The California State University Health Care Reimbursement Account (HCRA) is a voluntary benefit, which allows you to take pre-tax dollars from your pay warrant in order to pay for eligible out-of-pocket medical, dental and vision expenses. If you enroll in the plan, the contributions you make to your account are deducted from your pay before Federal, State and Social Security (FICA) taxes are calculated. A monthly administration fee of $1.00 will be deducted from your salary on an after-tax basis.
Please note: There have been important changes to the HCRA program. Please review the section below regarding Over the Counter Medications. Plan brochure can be downloaded through Acrobat Reader or you can obtain hardcopies through the Office of Human Resources.
New employees may enroll in the plan within 60 days of becoming eligible. Coverage will become effective on the 1st of the month following enrollment, subject to State Controller's Office processing timelines. Employees, who do not enroll during the initial 60 days, will be eligible to enroll during any subsequent annual open enrollment period or due to an eligible change in family status.
You are eligible to enroll in the HCRA if you are in an Executive, Management Personnel Plan (MPP), Confidential or other non-represented position, or are covered by a collective bargaining agreement that provides this benefit.
To enroll or re-enroll in the plan, employees must complete the Health Care Reimbursement/Dependent Care Reimbursement Account Enrollment Form and submit it to the Office of Human Resources. Once you enroll, you will not be able to change your contribution amount until the next open enrollment period unless you have had an eligible change in status. If you have a change in status, you may be able to increase (up to the appropriate IRS limit), decrease, start, or stop your contributions by completing the online request within 60 days of the status change. If you stop your contributions, you may continue to submit eligible expenses incurred prior to the date your plan participation ends. If your CSU employment terminates for any reason, or you go on a leave of absence without pay, please contact the Office of Human Resources for COBRA/Direct Pay information.
Allowable status change events are listed below:
Please be advised that eligible expenses may be incurred by your tax dependents that qualify for the program, even if they are not on your employer's insurance program as defined in IRS Publication 502, located at the following website: IRS. This publication may be used as a general guide, however, be aware that in some instances CSU Policy may differ. Questions should be directed to the Third Party Administrator, ASI, 1-800-659-3035 (M-F from 6am to 5pm).
You can contribute any amount from a minimum of $20.00 a month to a maximum of $212.50 per month ($2,550/year). Please Note: The IRS may impose additional limits in special situations. It is strongly recommended that you consult with a tax advisor before enrolling in this account. You must estimate your eligible expenses very carefully. Any money left in your Health Care Reimbursement Account after your expenses have been paid for the year will be forfeited. The IRS will not permit excess contributions to be refunded.
Your monthly contribution to your Health Care Reimbursement Account (HCRA) will be deducted from your paycheck (pre-tax) and deposited into a special tax-free account. Deposited funds are held in your account until you incur eligible expenses and file a claim form for reimbursement. Even when paid out as reimbursements, the funds remain tax-free. You may file claims for expenses incurred during a plan year any time up to six months after the end of the plan year (June 30 of the next year). Any balance remaining in the account after that date will be forfeited.
Below is a partial list of eligible expenses reimbursable under the HCRA plan. A comprehensive list of qualifying/non-qualifying expenses can be found in IRS Publication No. 502, located at the following website: IRS This publication may be used as a general guide, however, be aware that in some instances CSU Policy may differ. Questions should be directed to the Third Party Administrator, ASI, 1-800-659-3035 (M-F from 6am to 5pm PST).
Listed below is a partial list of expenses that are generally NOT reimbursable under the HCRA plan.
Health Care Reform legislation has directed that many over the counter medications will no longer be reimbursable with Flexible Spending Account funds, unless purchased in conjunction with a physician’s prescription. Items purchased to treat an existing or imminent medical condition can be claimed but the participant must indicate on the claim submission what medical condition is being treated and the prescription. Items such as vitamins, herbs or nutritional supplements are typically not eligible for reimbursement. In order to claim these items, you must have: an existing or imminent medical condition; a pre-printed receipt from the provider documenting the purchase; and a physician's diagnosis and prescription for the specific item(s).
The list below contains examples of OTC medications that will no longer be reimbursed under HCRA, effective January 1, 2011, without a prescription:
You can also locate an extensive list of eligible expenses and services reimbursable under the Plans on ASI Flex
The HCRA plan year is January 1st – December 31st of each calendar year, and you must submit claims no later than June 30th of the following year after the current plan year ends.
Claims applicable to HCRA cannot be reimbursed from DCRA account balances, and vice versa.
Employees may request that a claim incurred between January 1st and March 15th be applied to the current plan year balance rather than the previous plan year. Requests must be made in writing and submitted with the claim for special handling.
If you wish to re-enroll in HCRA and/or DCRA for the following plan year, you must enroll during the open enrollment period.
Please ensure that you are enrolled in the appropriate flexible spending plan(s) (i.e., HCRA and/or DCRA) and that the annual contribution that you elected is appropriately reflected in the correct monthly deduction on your pay warrant. Please review your pay warrant dated January 1st, and contact the Benefits Office immediately if a correction is needed.
If you lose your eligibility to participate in HCRA for any reason during the plan year (i.e., leave of absence without pay, retire, terminate, etc.), you may continue to make contributions on an after tax basis to your account through the end of the plan year.
Enrollment in COBRA or Direct Pay must be done within 60 days of losing your eligibility. If you choose not to continue contributions under COBRA/Direct Pay, the funds you have already contributed to your account will not be available for reimbursement of expenses you incur after the date you are no longer eligible. COBRA and Direct Pay enrollment forms are available in the Office of Human Resources.
Application Software, Inc. (ASI) is located in Columbia, Missouri and has participated as a TPA for flexible spending account plans since 1988. ASI will be mailing confirmation packets to enrolled participants by the beginning of the 2004 plan year. Packets will include a confirmation statement, an assigned personal identification number (pin), detailed account access instructions, a supply of claim forms, and a direct deposit enrollment form.
To obtain a claim form or file a claim on-line, visit ASI Flex. Completed claim forms should be mailed to ASI at the following address:
Reimbursements will be sent out on a bi-monthly basis based on the following payment schedule:
You have the option of receiving claim reimbursements by mail in the form of a check, or by direct deposit, if you submit a “Direct Deposit Authorization” form to ASI for processing. This form can either be downloaded from ASI Flex, or requested by contacting ASI at (800) 659-3035. If you choose to enroll in direct deposit, you also can request that reimbursement notifications and account statements be sent via e-mail, rather than U.S. mail.
Participants in the Health Care Reimbursement Account plan are able to access their account information by telephone or via the Internet:
You may file claims for expenses incurred during a plan year any time up to six months after the end of the plan year (June 30 of the next year).