University of Iowa employees are eligible to receive University Credits based on the benefits they elect. Through University Credits, the university may contribute funds to an employee’s health care flexible spending account (FSA). Credits are first applied to the employee’s before-tax cost, if applicable, for health insurance, dental insurance, group life insurance, voluntary term life insurance and accidental death and dismemberment (AD&D). Unused credits automatically roll into a health care FSA.
Effective January 1, 2019, if you waive health insurance through the university and you are not enrolled in other group health plan coverage that provides minimum value as defined in the ACA, the maximum amount of University Credits (General Credit and Shared Savings Credits) that can roll into a health care FSA is $500 per calendar year.
This is a legal requirement to comply with ACA regulations. Group health coverage is coverage sponsored by your (or your spouse’s or parent’s) employer. To confirm that your plan meets the minimum value standard, review the plan’s Summary of Benefits and Coverage (SBC) or check with your plan administrator.
If you waive coverage through the university, you will be required to complete an attestation regarding your health insurance status in Employee Self Service when completing your enrollment. If you indicate that you are not enrolled in other group health insurance that provides minimum value coverage, the following will apply:
- You will be eligible for the applicable amount of credits based on your elections; however, the maximum amount of credits that will roll into a health care FSA will be $500 (prorated to $41.66/month) for the calendar year.
- If you wish to contribute more to a health care FSA, you may contribute your own funds in addition to the $500 you receive in credits.
- You may designate credits in excess of $500 to a dependent care FSA or use credits in excess of $500 for other benefits.
- If you do not designate credits in excess of $500 to dependent care FSA or other benefits, the excess credits will be forfeited.
Please note: A spouse or dependent child for whom you seek reimbursement of expenses through the health care FSA must be enrolled in a plan that provides minimum value coverage during the time the expenses were incurred.
If you waive health insurance and have coverage through another University of Iowa plan or another plan outside the university, the $500 maximum does not apply. You are still eligible for the full, applicable credits based on your benefit elections.
It is your responsibility to notify University Benefits immediately if your enrollment status in other health insurance changes.