1 2010-11 section 125 flexible spending account plans: dependent care, medical premium &...
TRANSCRIPT
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2010-11 Section 125 Flexible Spending Account Plans: Dependent Care, Medical
Premium & Unreimbursed Medical Expenses
Employee Briefing
May 2010
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Key Features
• Medical premium, dependent care, unreimbursed medical expenses
• Plan administrator: BenefitsAssist
• Debit Card for Health FSA plan
• Paper claims paid by BenefitAssist instead of ORAU
• Non-debit card payments made @ 2 weeks
• $5,000 maximum per plan
• Medical premium – automatic re-enrollment
• Dependent care – paper claims
• Plan year: July 1 – June 30
• Annual claims deadline: June 30 + 90 days
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WHAT ARE FLEXIBLE SPENDING ACCOUNTS?
Flexible Spending Account (FSA) Employee elects on an annual basis an amount to be
deducted from payroll on a pre-tax basis
Unused funds revert to the employer if not used in the current plan year
Health FSA:
Funds used to pay for eligible medical expenses not covered under other insurance:
Doctor’s office and prescription drug co-pays
Medical deductibles and co-insurance
Approved over-the-counter items (ends 12/31/10)
Vision and dental costs
Chiropractic services
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WHAT ARE FLEXIBLE SPENDING ACCOUNTS? Flexible Spending Account (FSA) –
Dependent Care FSA:
Funds used to pay for eligible childcare and other dependent expenses:
Daycare
Nursery school
Before and after school care
Summer day camp
Care for mentally or physically handicapped over age 13
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A KEY VALUE OF FLEXIBLE BENEFIT PLANS IS THAT EMPLOYEES SAVE ON TAXES
• Employee tax savings for Health FSA, Dependent Care FSA:
FICA of 7.65% of payroll deducted contributions
Reduced federal, state, local income taxes
Eligible disbursements are not taxed
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THE SCENARIO BELOW IS AN EXAMPLE OF POTENTIAL SAVINGS
•Assumptions:
Health FSA election of $2000/year
Combined Federal/State/FICA tax rate of 22%
Employee savings:
•Pre-tax Health FSA contribution ($2000) X (.22) = $440 annual employee savings
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THE DEBIT CARD OPTION AVOIDS DELAY IN REIMBURSEMENT
Debit card can be tied to Health FSA
Card is used as credit card at point-of-sale
System checks cardholder status, account balance, and vendor merchant category code
If all three pass the check, funds come off of card
Additionally, if swiped amount matches the pharmacy, medical, dental, vision co-pay – NO receipts are required. Otherwise BenefitsAssist follows up with receipt request.
Card can be turned off if miss-used.
Card is reloaded and reused each year – DO NOT DISPOSE OF CARD.
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THE DEBIT CARD OPTION AVOIDS DELAY IN REIMBURSEMENT
You must report any loss or fraudulent use of thecard within 30 days of such transactions.Otherwise you may lose those funds.
You must use the card only to pay for expenses incurred after enrollment but during the plan year. Even if you are billed for a service or pay for it after enrollment, the service itself must have taken place after enrollment. You may only use the card to pay for expenses incurred, i.e. you cannot pre-pay for future services.
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Enrollment and Renewal
Employees must actively enroll in the plan(s). Eligible employees include Full-Time Regular, Part-Time Regular, and Full-Time Temporary
Enroll in Unreimbursed Medical and/or Dependent Care via enrollment form at Forms\HR\Comp&Benefits\Section 125 Plans\Flexible Medical Spending/Dependent Care Enrollment Form
• Medical premiums 125 (only) re-enrollment will be automatic
• Employees submit claims via US mail, e-mail, fax or by using debit card
BenefitsAssist, Inc. reimburses claims via check or direct deposit every other week
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PY 2010-11 125 PLAN SCHEDULEEvent/Action Date
Enrollment/Reenrollment Announcement Thursday, May 20, 2010
Enrollment formssubmitted: for Debit cards
by 7/1/10 Friday, June 4, 2010
Last day to enroll Wednesday, June 30, 2010
1st paycheck reduction Friday, July 16, 2010
Plan year ends June 30, 2011
Last day to file claims: 2009-10 Year Tuesday, Sept. 28, 2010
Last day to file claims: 2010-11 Year Wednesday, Sept. 28, 2011
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Information
• Enrollment: Send enrollment forms only to:
• Glenda McNeal, 865.576.3163,
• Claims: Send all claims to:
• Shawn Adams, BenefitsAssist, 865.769.2800
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QUESTIONS? CALL BenefitsAssist
Call BenefitsAssist, inc. – 865.769.2800 for Flexible Benefit Plan administration
Consultoría en español
[email protected]://www.benefitsassist.com/index.html
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