Health Benefit Expense Account (HBEA)

What It Is

The Health Benefit Expense Account is a program that allows you to set aside money, before taxes, from your paycheck to pay for health related expenses not covered by insurance. The great advantage is that you pay no federal taxes on your contributions.

If you or someone in your family, e.g., spouse and eligible dependents, goes to the doctor or dentist, takes medication or wears glasses, whether you have insurance or not, the Health Benefit Expense Account may save you money. For example, if you put in $1,000 and are in a 20% federal tax bracket you save $200 ($1,000 x 20% = $200).

This account is subject to New Jersey State Income Tax.

How It Works

Each year you may choose to contribute between $100 and $5,000 into the account¹. To get reimbursed for your eligible expenses, you will have the option of:

using the PayFlex debit card
filing the claim online on the PayFlex website; direct deposit of the reimbursement is available to your personal checking or savings account
scanning, faxing or mailing your receipt with the medical care reimbursement claim form

Submitted claims will be processed daily.

You have until March 31, 2013, to submit claims for eligible expenses you incur during the 2012 plan year, otherwise money left in your account will be forfeited.

¹ Elections do not automatically carry over each year. You must make a new election through eBenefits each year to participate in the Health Benefit Expense Account program, even if you participated in 2011.

How Much to Contribute

Contributions depend on household needs. Think about how many copayments you will have for physician visits or prescriptions. Will you pay a deductible? Perhaps you expect a large dental, orthodontic (e.g., braces) or vision expense (e.g.,LASIK surgery).

Change in Eligibility for Over-the-Counter Medications

Due to health care reform, beginning January 1, 2011, over-the-counter medications will no longer be eligible for reimbursement through the HBEA unless you have a prescription from a doctor.

This rule does not apply to items for medical care that are not medicines or drugs. For example, equipment such as crutches, supplies such as bandages and diagnostic devices such as blood sugar test kits will still qualify for reimbursement in 2012.

Expense Account Worksheet

Use the online worksheet to calculate your expenses and savings for the 2012 plan year, January 1-December 31, 2012.

Please estimate your expenses carefully because the IRS does not allow you to roll over unused funds at the end of the year, so any money left in the account will be forfeited.

You can count on support from knowledgeable and responsive HR staff when you have a benefits question or problem. Just call or e-mail us. We’re here to help!

While the University intends to continue each of the benefit plans, the University reserves the right to terminate or amend any plan, at any time, and for any reason.