HRA and FSA (HealthEquity/WageWorks)

We believe in equipping you with the best tools to manage your health and finances effectively. Here is a breakdown of the two types of health spending accounts we offer through KEHP. 

Health Reimbursement Arrangements (HRAs): Money from NKY Health to You

HRAs are special accounts funded entirely by NKY Health to help you cover qualified out-of-pocket medical expenses. This is a valuable benefit we provide to help offset your healthcare costs. 

• Embedded HRA: This HRA is automatically included if you enroll in a group health plan with a higher deductible.  It helps offset costs like co-payments and deductibles. The amount is based on your plan, and the funds typically roll over into the next year as long as you remain on the same plan.

• Waiver HRA: If you decline NKY Health's group health insurance because you are covered elsewhere, you may be eligible to receive a monthly contribution of $175. These funds can be used for eligible health expenses not covered by your other plan. Like the Embedded HRA, unused funds usually roll over to a certain limit.

• A Quick Note on HSAs: If you currently contribute to a Health Savings Account (HSA), please be aware that enrolling in an HRA may affect your eligibility for an HSA contribution. We encourage you to consult with your tax advisor or HSA plan provider to ensure you maximize your tax benefits.

Flexible Spending Accounts (FSAs): Save Pre-Tax Money on Your Expenses

FSAs let you set aside your own money on a pre-tax basis, effectively lowering your taxable income, to pay for eligible expenses throughout the year. 

• Healthcare FSA: For eligible medical expenses for you and your dependents. Great news: Up to $660 of unused funds can roll over into the next calendar year! 

• Dependent Care FSA: For eligible dependent care expenses (e.g., day care, preschool). Important: These funds do not roll over; they are subject to the "use it or lose it" rule. 

Using Your Funds and Checking Eligibility

• IRS is the Final Authority: The IRS strictly governs which expenses are eligible for reimbursement under all HRA and FSA plans. For the complete rules, please refer to IRS Publication 502 and IRS Publication 969. 

• Shopping for Items: The HealthEquity/WageWorks FSA Store is a convenient resource because it only sells items pre-verified as IRS-eligible. However, you are not limited to this store! Feel free to purchase FSA-eligible items from any retailer as long as they meet the official IRS guidelines.  

👥 New Employee Enrollment

Welcome to NKY Health! We're thrilled to have you! We want to ensure you maximize your full benefits package right away.

As a new, eligible full-time employee, you have a limited window of 30 days from your date of hire to make all your benefit elections, including your HRA/FSA, Group Health, Dental, and Vision plans.

• Effective Date: Your HRA/FSA benefits become effective on the first day of the month after your first full month of employment. (For example, if you start on May 10th, your benefits begin on July 1st.)

• Action Required: You must actively enroll or waive these benefits through KHRIS. If you fail to do so within the specified timeframe, you will be automatically assigned to the Waiver without HRA plan, and no HRA funds will be provided.

🔄 Annual Open Enrollment (Re-Enrollment): Don't Miss Out!

Open Enrollment, which usually occurs in the fall, is your yearly opportunity to enroll in an HRA/FSA or make changes to your existing elections. Participation is not automatic; you must re-enroll each year to continue your benefits.

Step-by-Step Enrollment Guide

1. Access KHRIS: Log into the Kentucky Employees' Human Resources Information Systems (KHRIS) portal. (New hires: Follow the "Forgot User ID" and "Forgot Password" steps to set up your account.)

2. Make Your Selections: Use the portal to enter dependent information (if applicable) and elect all your benefits, including your desired annual contribution amount for your FSA/HRA (if applicable).

3. Confirm and Submit (Crucial Step):

   • Print the confirmation form from KHRIS.

   • Email all pages of the confirmation form in a single .PDF from your @nkyhealth.org email to hr@nkyhealth.org. Your election is not official until HR receive this confirmation.

Need more help? Click here for more detailed instructions with pictures.

Life happens, and sometimes a major event requires you to update your benefits mid-year. We're here to help you navigate these important changes smoothly!

Key Rule: Act Within 30 Days Outside of the annual Open Enrollment period, you have 30 days from the date of the qualifying event to make these changes. It is critical to act quickly to avoid a lapse in coverage or missed deadlines.

Need help? Contact HR at hr@nkyhealth.org for personalized assistance. We are your partners in this process!

WHAT ARE THE ALLOWABLE REASONS FOR CHANGES?

Changes to your HRA or FSA are permitted by the Department of Employee Insurance (DEI) for two main reasons:

1. Updating Personal Information: This includes changes to your address, correcting personal data, or adding a Social Security number for a new baby.

2. Qualifying Events (QEs): These are specific life events that allow you to change your benefit coverage. 

How to Make a Change

The process for making a change to your HRA/FSA election depends on the reason. For most Qualifying Events, the process must begin with a submission to the DEI portal.

➡️For Qualifying Events Handled by DEI

For a list of allowable Qualifying Events and detailed instructions, refer to the QE List and Rules from DEI. If your event is listed below, you will upload your forms and documentation directly to the DEI Portal and follow the QE instructions from DEI.  This step is required to adjust your HRA/FSA contributions as well.

You must also email a copy of your full submission to hr@nkyhealth.org.

• • Birth, adoption, or placement of a child

  • Court order for a child

  • Change in marital status (marriage or divorce)

  • Loss of group or individual coverage 

  • Beginning or ending Medicare

  • Gaining or losing other coverage due to spouse's or dependent's change in employment status

➡️For Other Changes Handled Directly by HR

For all other reasons, including the events below, you will complete the necessary forms and email them directly to hr@nkyhealth.org from your NKY Health email account.

• • Updating Personal Information

  • Loss/Gain of Medicaid (Note: A Medicaid Eligibility Termination (MET) form must be submitted to HR first)

  • Dependents become ineligible

  • Court orders (other types not handled by DEI directly)

  • Death

Step-by-Step Instructions

1. Get the Correct Form: 

   • • Find the appropriate form in the Benefits Enrollment/Change Forms section.

     • Use the YYYY Employee Benefits Enrollment Change form for HRA/FSA changes.

2. Complete the Form:

   • • Fill out the form electronically.

     • Print and sign it in blue or black ink.

     • If you are only updating personal information, please note this clearly on the form.

3. Gather Required Documentation:

   • • Attach all required supporting documents (e.g., birth certificate, marriage license, proof of loss of coverage). 

4. Submit:

   • • For DEI Events: Upload to the DEI portal and email a copy to hr@nkyhealth.org.

     • For HR Events: Email the form and the documentation directly to hr@nkyhealth.org.

We understand that having access to your funds when you need them is essential for peace of mind! Here is when your money becomes available: 

• Medical FSA: Immediately! The full amount of your annual election is available on January 1st of each year (or your new hire effective date), even before all funds have been deducted from your paycheck. 

• Dependent Care FSA: As you contribute. Funds are available only as they are withheld from your payroll. You can only be reimbursed up to the amount deducted to date.

• Waiver HRA: In two installments. One-half is deposited on January 1st and the other one-half on July 1st each year.

• Embedded HRA: From your effective date of coverage and remain accessible until the balance is exhausted.

Important Note: Even if the funds don't show up in your account immediately, eligible expenses can be incurred anytime during the coverage period. As long as you were enrolled, you can submit a claim for reimbursement.

For all your HRA and FSA questions, we've got you covered! 

For Account-Specific Questions (Claims, Balances, Debit Card):

• Contact HealthEquity/WageWorks (our third-party administrator -TPA) 

• Log in to your Account Online Access or call support directly at 877-924-3967. 

For Enrollment & Policy Questions (Deadlines, Forms, Payroll):

• Contact the NKY Health HR Department by emailing us at hr@nkyhealth.org.

For State Policy & Final Appeals:

• Contact the Department of Employee Insurance (DEI) at 888-581-8834.

6/8/2023

• Added Revision Log.

9/19/2023

• Added 2024 Employee Benefits Enrollment/Change Form.

10/29/2024

• Added 2025 Employee Benefits Enrollment/Change Form.

• Updated language for 2025 Benefits period. 

2/18/2025

• Updated instructions for making changes due to QEs.

8/19/2025

• Updated instructions, combined sections, and clarified language. 

11/10/2025

• Revising sections to improve user experience.