What is the grace period?
• The Grace Period extends the normal timeframe you are allowed to incur eligible healthcare expenses. The normal timeframe, called the plan year, runs for a 12-month period. For a calendar plan year, the timeframe would usually begin January 1 and end on December 31. However with the grace period, you will have an additional 2 ½ months beyond December 31, therefore allowing you to incur expenses up until March 15 of the following year. In other words, you will have a total of 14 ½ months to utilize your 12 month election. The grace period helps you avoid forfeiting any funds deposited into your healthcare account. Any amount not used by the end of the grace period will be forfeited.
• The Grace Period extends the normal time frame you are allowed to incur eligible health care expenses. The normal time frame, called the plan year, runs for a 12-month period. For a calendar plan year, the time frame begins September 1 and ends on August 31. However with the grace period, you have an additional 2 ½ months beyond August 31, allowing you to incur expenses up until November 15 of the following year. In other words, you will have a total of 14 ½ months to utilize your 12 month election. The grace period helps you avoid forfeiting funds deposited into your health care account. Any amount not used by the end of the grace period will be forfeited.
