HRA and FSA (HealthEquity/WageWorks)

The Internal Revenue Service (IRS) governs which expenses are/are not eligible IRS Publication About Expenses Eligible for HRA or FSA.

The HealthEquity/WageWorks FSA Store sells only items that are eligible for reimbursement, but employees can buy items anywhere that is not restricted by the IRS.

For the complete HRA and FSA Policy refer to Section 4.2.3 of NKY Health's Guide to Personnel Policies.

NKY Health participates in the Commonwealth of Kentucky Employees' Health Plan (KEHP) administered by the Department of Employee Insurance (DEI) in Frankfort, KY for Health Reimbursement Arrangements (HRAs).  This is the same plan available to thousands of "state" employees throughout the Commonwealth. 

NKY Health employees may participate in either of two types of HRAs:

• Embedded HRAs: when enrolled in a group health insurance plan with a higher deductible the employee and those enrolled can use available HRA funds for eligible expenses to offset the deductible or co-payments.  The amount of funds varies by plan design. Usually unused HRA funds roll over into the next calendar year as long as the employee continues to be enrolled in the same plan. 

• Waiver HRAs*: when waiving group health insurance coverage during months s/he would have been covered, an employee may receive $175/month in standalone HRA to use for eligible health-related expenses not covered by another plan for herself/himself and covered dependents as long as s/he is not enrolled in a health insurance plan that prohibits receipt of standalone HRA funds. Usually unused HRA funds roll over into the next calendar year up to a certain amount as the employee continues to waive coverage under the same plan. 

Benefits become effective the first of the month following the full month after the date the employee is hired into an eligible full-time position. (For example, benefits for an employee hired on May 10 begin on July 1.)  Employees must actively enroll in/elect or waive benefits. 

Those who fail to enroll/elect or waive benefits will be assigned to a Group Health Insurance plan without Group Dental and Group Vision benefits and will be responsible for paying the employee portion of the premiums associated with that plan until changes are made during Open Enrollment (OE) or due to a Qualifying Event (QE).

*Those covered by a Health Savings Account (HSA), should check with their tax advisor or the HSA plan sponsor to find out if they have any restrictions on HRA enrollment. 

NKY Health participates in the Commonwealth of Kentucky Employees' Health Plan (KEHP) administered by the Department of Employee Insurance (DEI) in Frankfort, KY for Flexible Spending Accounts (FSAs).  This is the same plan available to thousands of "state" employees throughout the Commonwealth. 

NKY Health employees may choose to set aside their own money on a pre-tax basis for either or both of two types of FSAs:

• Medical FSAs: allow funds to be used for eligible medical expenses not paid by another plan for herself/himself and covered dependents. Usually, the IRS allows up to $570 of unused medical FSA funds to roll over into the next calendar year. 

• Dependent Care FSAs: allow funds to be used for eligible dependent care expenses.  Dependent care FSA funds do NOT roll over into the next calendar year.

Benefits become effective the first of the month following the full month after the date an employee is hired into an eligible full-time position. (For example, benefits for an employee hired on May 10 begin on July 1.)  Employees must actively enroll in/elect benefits. 

Those who fail to enroll/elect  or waive benefits will not be allowed to set aside pre-tax dollars for unreimbursed medical expenses until changes are made during Open Enrollment (OE) or due to a Qualifying Event (QE).

Dependent Care FSA funds are available the month after the month they are withheld from payroll.

The full amount of designated Medical FSA funds is available on January 1 of each year. These funds remain available throughout the year until they are exhausted or the employee becomes ineligible to use them due to a change in employment status.  The IRS currently allows between $5 and $500 of unused funds to roll over into the next calendar year.  Amounts lessor or greater than that amount are forfeited according to IRS guidelines.

One-half of the funds for Waiver HRAs are deposited on January 1 and the other one-half on July 1 each year.  These funds remain available until they are exhausted or  the employee becomes ineligible to use them due to a change in employment status or election of an insurance plan.

Funds available for Embedded HRAs remain available from the effective date of the coverage until they are exhausted or  the employee becomes ineligible to use them due to a change in employment status or insurance plans.

Expenses can be incurred any time during the coverage period even though the funds may not show up in the account.

Unless otherwise instructed by the HR Administrator, employees who are not transferring from another participating agency must elect/enroll in benefits using Kentucky Employees Human Resources Information Systems (KHRIS), the Commonwealth’s enrollment portal.

If you are a new employee or as an existing employee who is newly eligible for benefits and have not been otherwise instructed by the HR Administrator, then follow these steps to enroll in/elect benefits:

1. Go to the Kentucky Human Resources Information System (KHRIS) portal.

2. Set yourself up for the first time.

3. Enter information about your dependents.

4. Add/Select the benefits you want.  

5. Print the confirmation form and double check to make sure the benefits listed are the benefits you want.

6. Email all pages in one .PDF from your fname.lname@nkyhealth.org email to hr@nkyhealth.org. 

Outside open enrollment, employees may make changes for either of the following reasons:

• Employees must update personal information any time it changes or needs to be corrected. (For example, a change of address, a social security number for a new baby, etc.)

• Employees can change the amount of money they are contributing (including stopping and starting contributions mid-year) due to certain Qualifying Events (QEs) which are stipulated by the law for plan design. 

If you want to make changes due to a Qualifying Event (QE), first read the detailed instructions from Department of Employee Insurance (DEI) about enrolling or changing coverage.  After you have read this, follow these steps:

1. Complete the "Benefits Enrollment Change" form (found below) electronically, then print and sign in blue or black ink.

2. If you are correcting an error or updating personal information, note this on the form.

3. Check the form to confirm that all the fields are completed and the amounts listed are the amounts you want (if due to a QE).

4. Attach supporting documentation on letterhead showing your name, SSNO, the type of QE and the effective date of the QE. 

5. Email all pages and any supporting documentation in one .PDF from your fname.lname@nkyhealth.org email to hr@nkyhealth.org. 

Please visit the WageWorks/Health Equity Employee Resource Center for answers to all your questions, including how to submit claims for reimbursement.

Toll Free: 877-924-3967 

WageWorks (now HealthEquity) is the third-party administrator (TPA) for FSAs and HRAs.

Older cards will say "WageWorks"; newer cards will say "HealthEquity."

HealthEquity/WageWorks Main Page login to check balances and manage your account.

HealthEquity/WageWorks Support Center for everything you need to know and more about FSAs and HRAs.

Department of Employee Insurance Member Services: 888.581.8834 if Health Equity/WageWorks refers you to your employer or cannot help you.

NKY Health Insurance Coordinators (ICs): for questions about how to enroll in/elect or change benefits and related payroll withholdings. 

6/8/2023

• Added Revision Log.

9/19/2023

• Added 2024 Employee Benefits Enrollment/Change Form.