Understanding how you’re spending your money and using your benefits can help you spend more wisely. For example, when you use doctors and dentists who are in network, you’ll pay lower out-of-pocket costs. Another way to save is by going to the right place for care. The emergency room (ER) is where you should go for conditions that can permanently impair or endanger your life. Using the ER for non-life-threatening issues can be expensive. When possible, try and visit an urgent care center which is often three times less expensive than a trip to the ER.
In addition, if you are a Mainland or Hawaii employee, creating a Health Care Reimbursement Account (HCRA) or a Dependent Care Assistance Plan (DCAP) through PayFlex® will let you set aside pretax dollars for health and dependent care expenses. This means you’ll save money on those expenses because you’ll be paying with pretax dollars. During Annual Enrollment, you can sign up to contribute up to $2,750 pretax to an HCRA — $550 of which can roll over into the next calendar year if needed. You can also contribute up to $5,000 pretax to a DCAP. Watch the video below to learn more about how an HCRA can help with eligible health care expenses like copays, medication, braces or glasses.
Lastly, all employees have access to financial tips and tools through SmartDollar®. This online personal finance program can help you understand what you spend, plan a budget, get out of debt and save for emergencies.
What if you had more money in your pocket to help pay for healthcare expenses? Now you can, with a Healthcare Reimbursement Account, or HCRA, sponsored by your employer and administered by Payflex.
The Healthcare Reimbursement Account allows you to contribute pretax dollars to pay for eligible healthcare expenses. Such out-of-pocket expenses include: medical, dental, prescription, hearing, and vision expenses. You can also use your funds to pay for deductibles, copays, and coinsurance. Remember, with autopay, you don’t have to submit claims. Funds are automatically pulled from your HCRA to pay for eligible expenses.
Here’s how it works. When in enrolling in your benefits for the new plan year, estimate the amount you’ll need to pay for eligible healthcare expenses. Learn how to estimate your expenses at Costcobenefits.com. Based on your estimate, make your annual pretax contribution election to your HCRA, then throughout the year use your HCRA to pay for eligible healthcare expenses for you, your spouse, and any eligible dependents.
And now, it’s okay if you have some funds left at the end of the year. The traditional use it or lose it requirement has recently changed, and your employer has chosen to let you carryover a certain amount each year as long as you continue to be an active employee as of the last day of the plan year. So it’s no longer use it or lose it.
But remember, there’s a limit. Any funds over that limit can be forfeited or be subject to a runout period. Your employer offers a Payflex debit card so you can easily pay for eligible expenses. Just use your card to access your HCRA funds and immediately pay for RX, vision, and hearing expenses at Costco locations.
And you can access your account virtually, anytime, anywhere, through our dynamic website, or with our innovative Payflex mobile app that brings the website and all of it’s functionality to your fingertips. Take advantage of your company’s Healthcare Reimbursement Account and start saving. This has been a brief summary of an HCRA.
Please note that Costco’s Healthcare Reimbursement Account, HCRA, is a flexible spending account.
