Cornell's Select Benefits program has undergone some changes. The program has been renamed Flexible Spending Accounts (FSA), a name used by virtually all other employers, and will be administered by a new company, PayFlex. FSAs offer the same pre-tax advantages as did the Select Benefits accounts, but also include some new features and impose new federally mandated restrictions.

Staff and faculty can enroll in two kinds of flexible spending accounts during the open enrollment period (for endowed employees) and option transfer period (for contract college employees): a health care FSA and a dependent care FSA. Employees must enroll each year in order to participate in that FSA.

A health care account reimburses you for eligible out-of-pocket medical, dental, prescription or vision expenses not covered under your health care plan; a dependent care account reimburses you for such services as day care, before- and after-school programs, nursery school or preschool, summer day camps and adult care.

According to the Benefits website, the flexible spending accounts program is one of the greatest tax breaks available for middle-income families. Money in an FSA is exempt from federal, most state and payroll taxes. To activate an account, specify how much money you want transferred from each paycheck to your flexible spending account. FSAs use pre-tax dollars, effectively lowering the income that you are taxed on.

New this year: federal regulations stipulate that the most a plan participant can target to a health care FSA is $2,500 per employee each plan year. As in the past, the most that can be applied to a dependent care account is $5,000 per household per plan year.

Also new this year: PayFlex will offer a debit card that can be used to pay for eligible medical care expenses. If you enroll in a medical FSA, this card will be automatically loaded with the full amount you have elected for the year and mailed to you.

How does it work? You swipe the card at a provider where MasterCard is accepted, and the money from your account is automatically applied to your bill. Providers include many physician and dental offices, hospitals, mail-order prescription vendors, hearing and vision care providers, discount stores, grocery stores and pharmacies, provided the merchant has implemented an inventory information approval system (IIAS) or other Internal Revenue Service-approved system. If your medical care account has sufficient funds, you will not need to submit a claims form or wait for reimbursement.

If you do not want to use your debit card, you can always pay for the services rendered or items purchased out of your own funds and submit a reimbursement claim form, including the bill or your health care insurance's Explanation of Benefits (EOB) form, for reimbursement to PayFlex. Claims can also be submitted online along with a PDF of the bill or EOB.

If you have questions, call the Benefits Resource Center at 607-255-3936 or email benefits@cornell.edu. Also plan to attend the annual Benefair Nov. 14, 9 a.m.-3 p.m., G10 Biotechnology Building.