Medical Expense Reimbursement
Marathon Petroleum provides opportunities that can help you with your health care costs. The Health Care Flexible Spending Account (HCFSA) and Health Savings Account (HSA) allow you to pay for eligible out-of-pocket health care expenses with pre-tax dollars.
- Health Care Flexible Spending Account (HCFSA)
To participate in the HCFSA, you must actively enroll each year and select an annual contribution amount (between $120 and $3,050) to be deducted from your pay on a pre-tax basis in equal amounts each pay period. This account is available if you are enrolled in the Classic Health Plan option, Kaiser HMO option, or if you have waived Health coverage. It’s important that you select your contribution amount carefully because IRS regulations require that you forfeit any HCFSA funds that aren’t used to reimburse eligible expenses by the filing deadline.
- Health Savings Account (HSA)
The Health Savings Account, administered by Fidelity, is a triple-tax advantaged account that you can use to pay for qualified health-related expenses, including copays, coinsurance and deductibles for medical, prescription drug, dental and vision expenses. You are eligible to open an HSA only if you enroll in the Saver HSA option of the Health Plan.
MPC provides HSA contributions to employees who enroll in the Saver HSA Plan option and elect the HSA. Employees enrolled in Employee Only coverage will receive $500 and those enrolled in Employee + Dependent(s) coverage will receive $1000 (if enrolled the entire plan year). Company contributions will be disbursed in equal installments each pay period that you are a participant in the HSA. (Per IRS regulations, participants in the Saver HSA Plan option become eligible to participate in the HSA, beginning the first day of the month on or after their enrollment). Partial year participants will receive a pro-rated Company contribution based on the number of pay periods they are a participant in the HSA. (To receive the full Company contribution you would need to be a participant in the HSA for all 26 pay periods of the year).
For 2023, the IRS limits are:
- $3,850 for Employee Only coverage ($500 MPC contribution + $3,350 employee contribution)
- $7,750 for Employee + Dependents coverage ($1,000 MPC contribution + $6,750 employee contribution)
- Plus an additional $1,000 in catch-up contributions if you are 55 or over.
You manage this account. You can choose to save and invest the money with tax-free earnings or use it to pay eligible expenses during the year, up to your current balance. If you had an HSA with a previous health plan, you can transfer it to your Fidelity HSA.
Your HSA has a triple-tax advantage because:
- The contributions you make are pre-tax.
- Any investment earnings are tax-free.
- Payments from the account for qualified health care expenses are tax-free. HSA funds roll over from year to year and belong to you so you will always have access to these funds. You do not need to submit receipts for reimbursement. However, it’s recommended you save receipts and records in case the IRS requests proof that these funds were used for qualified health care expenses.
- Limited Purpose Flexible Spending Account
If you are enrolled in the Saver HSA, you may establish a Limited Purpose Flexible Spending Account (LPFSA) that is limited to paying for eligible dental and vision expenses. As with the Flexible Spending Account, you can elect between $120 to $3,050 in pre-tax dollars per year for your anticipated dental and/or vision expenses. Your FSA contributions are divided evenly throughout the year and deducted from each paycheck before taxes are withheld, but your full election is available for immediate use.
The LPFSA works great with an HSA, since it helps save your HSA dollars for future expenses. Eligible expenses may include: dental and orthodontia care, such as fillings, X-rays and braces, vision care, including eyeglasses, contact lenses and LASIK surgery.
Once you meet your deductible, you can use your funds to pay for all eligible health care expenses. But first, make sure you let PayFlex know you met your deductible.
- More Important Information