logo

Lifestyle Spending Account (LSA)

Page Header

LIFESTYLE SPENDING ACCOUNT (LSA)

Children’s Mercy provides a Lifestyle Spending Account (LSA) to help support your health and wellness. The account is funded quarterly, based on your status on the first day of each quarter. WEX administers the plan for us.

HOW IT WORKS

  • Children’s Mercy funds this post-tax account to reimburse you for eligible expenses (defined below) incurred by yourself and/or your dependents.
  • You must use the funds each year or lose them. They do not roll over to the next year.
  • All claims are due by December 1.
  • Reimbursed expenses will be added to your taxable income on a monthly basis, and you will see the withholding on your paycheck. (Your reimbursement will come directly from WEX.)

ELIGIBILITY

Full-time team members will receive $200 each quarter (Jan. 1, Apr. 1, July 1, Oct. 1) – or $800* annually. (Full-time is defined as .75 FTE and above.)

Part-time team members will receive $100 each quarter (Jan. 1, Apr. 1, July 1, Oct. 1) – or $400* annually. (Part-time is defined as .4 to .74 FTE.)

You do not need to be enrolled in a medical plan to receive funding each quarter.

*Funding occurs on a quarterly basis. You must be in an eligible position on the first day of the funding month to receive funding. The amount of funding also is determined by your FTE status on the first day of each quarter. Based on these conditions, the annual amount may vary.

ELIGIBLE EXPENSES

Expand each category to see the full list of eligible expenses.

Child, Adult and Elder Care*

  • Child care (onsite help, nanny, babysitters)
  • Elder care (nursing home, onsite help)
  • Diapers, wipes, bottles
  • Furniture necessary for comfort or convenience (crib, playpen, rocking chair, highchair, etc.)
  • Adoption expenses (adoption agency fees, home study fees, court costs, legal fees, travel expenses). Excludes medical expenses of the birth mother/surrogate

*Excludes items covered under medical insurance, and costs reimbursed through a dependent care or health care flexible spending account or claimed through the IRS child tax credit.

Financial Wellbeing

  • Student loan reimbursement
  • Home expenses (down payment for home or renter deposit, closing costs, utility bills, etc.)
  • Transportation (bus ticket, bicycle maintenance or equipment, vehicle maintenance, repair or gasoline)
  • Scrubs
  • Financial advisory and planning services
  • Financial seminars and classes
  • Certifications
  • Estate planning
  • Pet insurance premiums
  • Office equipment (desk, chair, keyboard, mouse)

Physical Wellbeing

  • Athletic equipment and accessories (including athletic shoes)
  • Exercise equipment
  • Gym, health club, fitness studio memberships (rock climbing, martial arts, tennis, etc.)
  • Spa treatments (facial, pedicure, manicure, body wrap (excludes massage))
  • Fitness classes (yoga, Pilates, spin/cycle, dance, etc.)
  • Lessons (golf, swimming, tennis, dance, etc.)
  • Personal trainer
  • Fitness trackers (Fitbit, Apple Watch, etc.)
  • Entry fees (marathons, leagues, etc.)
  • Passes (ski, snowboard, golf, swimming, etc.)
  • Home meal delivery service (Blue Apron, HelloFresh, Home Chef, etc.)

Emotional and Mindful Wellbeing*

  • Meditation classes
  • Retreats (leadership, spiritual, etc.)
  • Pet care (walkers, day care, grooming, etc.)
  • Camping (equipment, fees, etc.)
  • Personal development classes (art, cooking, etc.)
  • Entry passes or tickets (park, zoo, recreational, concert, museum, symphony, theater, etc.)
  • Hunting and fishing licenses

*Excludes items covered under medical insurance.

INELIGIBLE EXPENSES

You may not submit expenses that are covered or reimbursed by any other program.

The LSA does not cover any items found in the IRS Section 213(d) (Flexible Spending Account or Health Savings Account) eligible expense list. This account cannot be used to reimburse you for any expenses reimbursed through a dependent care or health care flexible spending account or claimed through the IRS tax credit. It does not cover any expenses already covered by medical insurance, including massage.

HOW TO SUBMIT

To submit a claim for reimbursement, create or log in to your account here: WEX log in

New Users: Select “Get Started” to complete registration using your CMH email address. (View a tutorial)

Existing WEX Users (FSA, LPFSA, Dependent Care): Use your current credentials to log in.

Select “Reimburse Myself” then “Lifestyle Spending Account.” Follow prompts to submit claim. (View a tutorial)

Frequently Asked Questions

Do unused funds roll over?

Unused dollars do not carry over to the new calendar year. However, unused dollars will roll over each quarter. Example: Sally, a full-time team member, purchases athletic shoes for $75 in February and submits this claim for reimbursement. Sally’s balance of $125 will carry over into the new quarter along with the newly deposited $200 on April 1.

How do I file a claim?

Log in to your WEX account online and select “Reimburse Myself,” then select your Lifestyle Spending Account. You will need to upload documentation to request a reimbursement. Confirm documentation lists date of service/purchase, item purchased, dollar amount and the name of the provider/merchant. Follow the prompts to submit your claim for reimbursement. (View a tutorial)

What documentation is needed to file a claim?

Participants must provide documentation such as a receipt or paid invoice that includes the date of service, item purchased, dollar amount and the name of the provider or merchant. Venmo or PayPal do not suffice as an acceptable form of receipt.

What’s my deadline to submit claims?

You must submit all claims to WEX by December 1 of each year to be reimbursed. You will forfeit any unused funds.

If a claim exceeds my available balance at the end of the year, can I submit the remaining portion for reimbursement the following year?

No. The purchase must be within the plan year (January to December) from which you’re requesting reimbursement. You cannot split a claim over two years.

Will I still have access to the LSA if I terminate employment?

No. If you terminate employment, you will lose access to your LSA balance immediately; there is no grace period. All claims must be submitted before termination and will be paid out by WEX if approved. Any denied claims will require additional documentation.

How am I reimbursed?

By default, WEX will reimburse you via paper check. To receive reimbursements via direct deposit to the account of your choice, you must add your banking information to your WEX account online. Learn how.

There is a minimum $25 reimbursement amount for checks to be issued right away. Your reimbursement will be issued after you submit additional claims to bring your total to at least $25. If your claims do not total $25, you will be reimbursed at the end of the month.

Note: Allow 2 to 8 business days for the check to arrive or 2 to 3 business days for funds to post to your bank account once the claim is approved.

Denied claims will require additional documentation. You will receive a notification from WEX and see an action or task on your account. The claim will not be reimbursed if you don’t provide the required documentation, and you will forfeit funds after December 1.

Can I use funds for my dependents?

Yes, eligible expenses incurred by your dependents can be reimbursed.

Can I contribute?

No; Children’s Mercy provides the funding for this account.

How is taxation assessed?

Reimbursed expenses will be added to your taxable income on a monthly basis. Social Security, Medicare, federal, state and local income taxes are applicable. Understanding Your Paystub.

Unused dollars will not be taxed, however. Keep in mind: If you store up your dollars for a larger expense at year-end, the amount added to your taxable income will be higher. Example: You want to build your balance with the intention of submitting a claim for $500 in November. On the second paycheck in December, $500 will be added to your taxable income.

Questions?

Or reach out to your CM Benefits team at Benefits@cmh.edu.