SPENDING ACCOUNTS
A Health Reimbursement Arrangement (HRA) is provided by Williams with one of the medical plan options. You will be able to elect a Healthcare Flexible Spending Account (HCFSA) and/or Dependent Care Flexible Spending Account (DCFSA) through Ameriflex. The differences between the accounts will be reviewed below.
HEALTH REIMBURSEMENT ARRANGEMENT (HRA)
The Health Reimbursement Arrangement (HRA) is used in conjunction with the Signature HRA Plan. Please see the below details:
Signature HRA Plan - 50% FUNDING
- Under the Signature HRA Plan with 50% funding, Williams will fund $1,000 for an individual and $2,000 for a family directly into your HRA.
- The HRA is solely funded by Williams Companies.
- This Signature HRA Plan has a $2,000 individual / $4,000 family deductible.
- The HRA will pay the first $1,000 (single) or $2,000 (family) of your initial deductible-eligible expenses, and you will need to pay the remaining $1,000 (single) or $2,000 (family) if claims exceed the HRA funding.
How it Works
Aetna administers the HRA. The administration happens behind the scenes. When your doctor submits an invoice to Aetna for services that apply to the deductible, and the deductible is not met, Aetna will first pay the physician on your behalf with any available HRA funds. Once the HRA funds are exhausted you will be responsible for any remaining deductible and coinsurance costs.
Rollover Provision
Williams allows you to roll over any unused HRA dollars into the next plan year. The next plan year, the annual Williams HRA contribution will be capped so that the combination of the annual Williams HRA contribution and any rollover HRA balances do not exceed the in-network deductible for your coverage tier.
Additional Information
As a reminder, if you are covering any other family member(s), the Family Deductible will apply. The Family Deductible must be met by two or more family members. No individual family member can satisfy the entire Family Deductible.
HRA funds can be used to pay all eligible medical and prescription expenses that are subject to the deductible for the plan year beginning January 1, 2025 through December 31, 2025. Please note, HRA funds may only be used on in-network expenses.
HOW IT WORKS
Present your Aetna ID Card
Complete your visit with provider.
Provider will submit claim for processing visit
Aetna will adjust the claim and prepare the EOB (Explanation of Benefits)
You will receive an EOB and and invoice from your provider
Aetna will automatically pull the eligible amount from your HRA Funds until exhausted.
FLEXIBLE SPENDING ACCOUNTS (FSA)
Williams offers a Healthcare and Dependent Care Flexible Spending Accounts to eligible employees. Employees who choose to enroll in an FSA will receive a debit card from Ameriflex to access their funds. All Flexible Spending Accounts are administered through Ameriflex. If you are enrolled in one of the HRA plans, you are still eligible to participate in a Healthcare FSA.
An FSA allows you to set aside a portion of your salary on a pre-tax basis to help pay for eligible expenses. When you make an FSA election, the annual amount elected is divided by the number of pay periods and would be deducted from your paycheck in equal installments on a pre-tax basis. Because you do not pay taxes on money that goes into the FSA, you can decrease your taxable income and potentially increase your spendable income.
To access your account, login at myameriflex.com. You can:
- Track your claims and FSA spending - Check your balance - Request reimbursement
HEALTHCARE FLEXIBLE SPENDING ACCOUNT
Eligible expenses include medical, dental, vision expenses, and some over-the-counter items. You can elect up to $3,300. Your full annual election will be available on day one of the plan year, January 1, 2025.
A full list of IRS-eligible expenses can be located on fsastore.com/fsa-eligibility-list. Over-the-counter (OTC) medications and menstrual care products are covered through the Healthcare FSA. You are permitted to carry over $640 of Healthcare FSA funds from the January 1, 2024 - December 31, 2024 plan year.
You are permitted to carry over $660 of Healthcare FSA funds from the January 1, 2025 - December 31, 2025 plan year.
You are able to purchase eligible items online at the FSA Store:
DEPENDENT CARE SPENDING ACCOUNT
If you have a child (under the age of 13) or disabled loved one, you might rely on services like day care or home aide to be able to go to work. Lessen the financial burden by enrolling in this account.
Eligible expenses include daycare, babysitting, and before/after school programs. You are able to elect up to $5,000. Please note this is a use-it-or-lose-it election, which means you will forfeit any unused funds remaining in your account when the next plan year begins on January 1, 2025. Dependent Care FSA funds are only available as you accrue payroll deductions.
The IRS allows you to claim work-related dependent care expenses as a credit on your annual tax return. You can use a Dependent Care FSA and claim the tax credit, as long as you do not claim the same expenses for both. A rule of thumb is that if you earn less than $39,000 annually it is more beneficial to forgo the Dependent Care FSA and take the full dependent care credit on your income tax credit. Please consult your tax advisor to determine what scenario may make sense for you.
Why Enroll in a Flexible Spending Account?
Everyone has out-of-pocket costs for health care, dental care, and vision care that is not covered by insurance. Additionally, many working parents have dependent care costs. An FSA plan provides a way to pay for these expenses on a pre-tax basis. When you make an FSA election, the annual amount you elect is divided by your number of pay periods and is deducted from your paycheck in equal installments on a pre-tax basis.
How Does an FSA Increase my Spending Income?
Joe earns $55,000 annually and has out-of-pocket medical and dental costs of $2,000 annually. In the left column, Joe does not set-aside the $2,000 in a FSA. In the right column, Joe takes advantage of the FSA. Look below to see which option results in more spending income at the end of the year:
