FlexElect Reimbursement Account Benefits
FlexElect Reimbursement Accounts
The FlexElect Program allows state employees to set aside money in a reimbursement account to pay for certain kinds of expenses. Deductions occur before tax withholding, reducing your tax liability.
- Medical Reimbursement Accounts – Set aside money for eligible medical expenses.
- Dependent Care Reimbursement Accounts – Set aside money to topay for childcare expenses and the care of qualifying adults who cannot care for themselves.
When you enroll in a reimbursement account, you designate an amount to be deducted each month from your wages. That money is automatically deposited in your account for one plan year. After incurring health-related or dependent care expenses during that year, you submit a claim for reimbursement from your account. Your reimbursement check is mailed to you, or you can request direct deposit into your checking or savings account.
Please read the 2024 FlexElect Handbook carefully before making a decision about enrolling in the program. This program offers several choices, and you will need to determine which options are right for you. Contact your department’s personnel office if you have any questions that are not answered on this page or in the plan handbook. You may also wish to seek the advice of a qualified tax consultant.
Who Can Enroll
You are eligible to enroll in a reimbursement account if you have a permanent position that is half-time or more. If you have a limited-term or temporary position, you’re eligible if you have a mandatory right of return to a permanent position that is half-time or more. If you’re a permanent-intermittent employee, you’re not eligible to enroll in a reimbursement account.
You may enroll in a reimbursement account during the annual Open Enrollment period or within 60 days of experiencing an event that makes you newly eligible for these benefits.
Events that make you newly eligible for these benefits include the following:
- You are a new state employee hired after the Open Enrollment period.
- You were on an approved leave of absence during the entire Open Enrollment period.
- You experience a change in status that permits you to enroll as newly eligible. If your change in status results in a concurrent approved leave of absence (e.g., birth of child followed by a maternity leave), you may enroll by the deadlines specified below after you return to work.
- Your time base or employee designation changes from one that was ineligible to one that is eligible or you change from a permanent-intermittent position to a permanent position with a time base of half-time or more.
Deadline for newly eligible employees to enroll:
If you are newly eligible and want to enroll in a reimbursement account, you must submit enrollment forms to your department’s personnel office within 60 days after becoming newly eligible. If you complete your forms correctly and the State Controller’s Office (SCO) receives them by the tenth of the month, your enrollment is effective the first of the following month. When the tenth is on a weekend or holiday, the cut-off date will be on the next regular workday. Forms received after the tenth of the month will be the effective the first of the next following month. Be sure to review your election carefully before you submit your form.
For 2024: If you are newly eligible, your last possible effective date of participation in the 2024 plan year is December 1, 2024. For your enrollment to be effective December 1, 2024, SCO must receive your enrollment form by November 10, 2024. Forms received after that date will be processed for the 2024 plan year.
You can’t change or cancel your enrollment during the plan year unless there is a change in your status, called a permitting event. A list of permitting events is available for medical reimbursement accounts and dependent care reimbursement accounts.
If you increase your deduction amount because of a permitting event during the plan year, you may only claim the increased amount for expenses incurred from the effective date of your change and not the permitting event date.
If you enroll in a reimbursement account, a $1.00 fee is deducted from your after-tax salary each month. This fee covers the administrative costs for the program.
Deadline to Claim Funds
You must submit claims for services provided in 2023 by June 30, 2024.
Use It or Lose It
Any funds left in your account after the June 30 deadline will be forfeited.
Once an election is made after becoming newly eligible or experiencing a permitting event, you must experience another permitting event to change your election, even if you are still within the 60-day time period.
IRS rules allow coverage of married and unmarried dependent children under their parents’ health and dental plans up to age 26. You may submit claims for reimbursement for medical expenses for dependents that are under the age of 26 at any time during the plan year.
2023: The mileage rate for medical purposes is 22 cents per mile.
Money deducted from your paycheck for a reimbursement account and the reimbursement payments are not taxable, which lowers your tax liability.
Actual tax savings vary from one individual to another, depending on deduction amount, salary, marital status, exemptions, and participation in other tax savings programs such as Savings Plus. See the 2024 FlexElect Handbook (PDF) for a sample calculation.
Some employees may prefer to claim their dependent care expenses on their tax return instead of through a reimbursement account. This topic is explained further in the dependent care reimbursement account section. Before you make a final decision to enroll in a reimbursement account, it is a good idea to check with a tax advisor if you are unsure which option offers you the best tax advantage.
Reimbursement Claim Instructions
Fill out the CalHR 351 – FlexElect Reimbursement Claim Form.
Submit the required documentation for each expense you are claiming.
Medical Reimbursement Account Claims
If claiming reimbursement from a medical account, attach a statement of services, itemized bill, explanation of benefits statement, or other documentation showing the date of service, type of service, and amount you are responsible for paying. A cancelled check, credit card receipt or account statement is not sufficient.
Dependent Care Reimbursement Account Claims
If claiming reimbursement from a dependent care account, attach a statement signed by your provider or have your provider sign in the space provided on the claim form. If you attach a statement, it must show the provider’s name, beginning and ending dates of the dependent care service that was provided, the amount, and the provider’s tax I.D. or Social Security Number. If your provider signs the claim form, the information above needs to be included on the form.
You may submit claims as often as you like. If you pay your provider in advance, you may prefer to submit your claims every week or two rather than waiting until the end of the month. We suggest making extra copies of your original statement if you plan to submit claims more frequently. You can also break down your monthly payment into weekly or biweekly service periods and pro-rate the expense on your claim form.
You have several options for submitting claims.
Mail: Mail claim forms to:
Application Software Inc.
P.O. Box 6044
Columbia, MO 65205-6044
Fax: Fax claim forms and supporting documentation to ASIFlex at (877) 879-9038
Online: Create an account at ca.asiflex.com to submit claims online
Your Mobile Device: Download the app at ca.asiflex.com and view the “how-to” video
Once your claim form is processed, a reimbursement check is mailed to your home or direct deposited into your bank account.
Your check will be mailed to the address that SCO has on file for you. For that reason, it is important that you verify with your department’s personnel office that SCO has your correct address on file. If the address is incorrect, or you move while enrolled, you need to complete an Employee Action Request (STD. 686) so SCO can update its records. This form is available from your department’s personnel office.
You may also sign up for direct deposit in lieu of receiving a physical check by logging into your ASIFlex account at ca.asiflex.com. Be sure to verify your account information prior to submitting your request to ensure there are no delays in receiving your reimbursements.
Claim Rejection Procedure
If your claim is rejected, partially or in full, ASIFlex will send you a rejection letter. If your claim is received during the run-out period (January through June of the following plan year), and additional documentation is required, you have 60 calendar days from the date listed on the rejection letter to resubmit. You should include the rejection letter along with the documentation being resubmitted.
Request Forms and Information
To submit reimbursement claims you will need to complete the Flex Elect Reimbursement Claim Form. If you have questions about how to fill out the form, what documentation to attach or the status of a claim you submitted, call ASIFlex at (800) 659-3035 or email ASIFlex.
General account information is available on the ASIFlex website.
Reimbursement account claims are paid twice a week. The average turnaround time between submission of a claim and the issuance of the check is two weeks. Payments for dependent care reimbursement account claims require that the funds be available in your account and the service period has passed.
The minimum reimbursement amount that will be paid from your account is $10. If you submit a claim for less than $10, the payment will be held until your total reimbursement equals $10 or more. If you have less than $10 in your account, ASIFlex will run a report twice a year in June and December to identify small claims and pay them.
Permanent-Intermittent Employees–Time Base Changes
If you are appointed to a permanent position with a time base of half-time or more, you will be eligible for a reimbursement account. If you want to enroll in a medical reimbursement account or dependent care reimbursement account, you must complete a Reimbursement Account Enrollment Authorization Form within 60 days of the date of your appointment. Conversely, if you change from permanent status to permanent-intermittent, you lose eligibility for the reimbursement account, unless you choose to continue your deductions under the Consolidated Omnibus Budget Reconciliation Act (COBRA). COBRA can be used for medical reimbursement accounts only.
Medical and dependent care flexible reimbursement accounts allow for a grace period immediately following the end of each plan year. Expenses incurred during the grace period may be claimed against any unused contributions from the plan year. The grace periods for both the medical and dependent care flexible reimbursement accounts extend for a period of two months and 15 days immediately following the end of each plan year. You may use money deducted in 2023 to pay for medical and dependent care expenses incurred up to March 15, 2024.
You have until June 30 to submit claims for reimbursement for expenses from the prior plan year, including expenses incurred during the grace period.
What happens to my claims during the grace period if I have a reimbursement account for the previous and current year?
Claims will be paid in the order in which they are received. If you have an account balance in your prior plan year account and submit a claim with a date of service during the grace period, the expense will automatically be paid from your prior plan year account.
Can I tell the third-party administrator which plan year I want my claims to be paid from?
Claims will be paid in the order in which they are received. You may not request that a claim be paid from a specific plan year. However, you can control the order in which you submit or file your claims. Always make sure that you file older claims first to ensure that funds are paid from the previous plan year first.
What happens if I do not submit my reimbursement claims from the prior plan year by June 30?
If a reimbursement request is submitted after the June 30 deadline, the reimbursement request will be denied.
- SCO’s state employee paycheck calculator – Calculate the tax benefits of a Reimbursement Account
- 2024 FlexElect Handbook (PDF)
- IRS Publication 502 Medical and Dental Expenses – PDF
- IRS Publication 503 Child and Dependent Care Expenses – PDF
- Reimbursement Account Enrollment Authorization – STD 701R – PDF
- FlexElect Reimbursement Claim Form – CalHR 351 – PDF
- Premium Only Plan Request for Disenrollment – CalHR 006 – PDF
- Letter of Medical Necessity – ASIFlex – PDF
- Qualified Reservist Distribution (QRD) Request Form – CalHR 902 – PDF
For more information or if you have changes to your current plans, please contact your department’s personnel office.