August 17, 2020
Updates to MCAP and DCAP plans are available
With guidance from the Internal Revenue Service, Central Management Services is implementing provisions which may impact members’ enrollments in the Medical Care Assistance Plan (MCAP) and Dependent Care Assistance Plan (DCAP) in fiscal years 2020 and 2021.
The state of Illinois is allowed additional flexibility to employees with respect to certain mid-year elections during the 2020 calendar year which ends on Dec. 31, 2020, and the ability to use amounts remaining in the employees’ MCAP and DCAP accounts at the end of the plan year.
Employees are able to make change by visiting mybenfits.illinois.gov or by calling 844-251-1777.
In accordance with the IRS guidance, CMS will be implementing the following provisions:
- MCAP and DCAP participants will be allowed an extended period through Dec. 31, 2020, to incur expenses which may be reimbursed from FY20 accounts. Due to the COVID-19 outbreak, planned elective medical procedures have been postponed or canceled, resulting in an inability to use FY20 MCAP funds. Similarly, the closure of daycare or after-school programs, or the lack of a need for child care while the employee is working from home or in an on-call status, may result in unused FY20 DCAP funds. To address this situation and reduce the risk of financial harm to the members, CMS will allow employees to apply unused amounts in their MCAP and/or DCAP accounts at the end of FY20 to pay for eligible expenses incurred through Dec. 31, 2020.
Please note: Members with unused funds who are allowed a grace period will not be eligible to contribute to an HSA or receive the employer contribution during the grace period. CMS will contact any employee enrolled in the high-deductible health plan and elected an HSA who also has an unused FY20 MCAP balance to resolve this matter with the member.
- Mid-year enrollment and increases to MCAP will be allowed without an associated qualifying event through Dec. 31, 2020. Employees will be permitted through Dec. 31, 2020 to prospectively enroll in MCAP or increase their election amount without an associated qualifying event. Effective Jan. 1, 2021, any request to enroll or increase an MCAP election will again require a qualifying event.
- Mid-year enrollment increases, decreases or termination of DCAP will be allowed without an associated qualifying event through Dec. 31, 2020. Employees will be permitted through Dec. 31, 2020, to prospectively enroll in DCAP, increase or decrease their election amount, or terminate their DCAP enrollment without an associated qualifying event.
- Effective Jan. 1, 2021, all DCAP and MCAP election changes will again require a qualifying event. Effective with fiscal year 2021, the amount of unused MCAP funds at the end of a plan year which may be carried-over to the subsequent plan year, will be increased to $550. For clarity purposes, this provision will apply effective with fiscal year 2021 funds that could potentially be carried-over for use in fiscal year 2022. The carryover maximum for unused fiscal year 2020 funds remains $500. Members are only eligible for carryover amounts if they re-enroll in MCAP for the following plan year.
For additional information, visit mybenfits.illinois.gov or call 844-251-1777.