county of santa cruz health care flexible spending account
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COUNTY OF COUNTY OF SANTA CRUZSANTA CRUZ
HEALTH CARE FLEXIBLE HEALTH CARE FLEXIBLE SPENDING ACCOUNTSPENDING ACCOUNT
Health Care FSAHealth Care FSA Employee-funded account for the
reimbursement of expenses not covered by insurance
Pre-tax funding of elective contributions for known, budgetable expenses
$2,400 plan year maximum benefit election
Uniform Coverage Rule: full benefit is available on any day of the Plan Year
Health Care FSAHealth Care FSA• Claims Administrator: Creative
Benefits, Inc.• www.crbenefits.com• Internet access to claims status and
account balances• Direct Deposit of claim payments is
available• Optional Health Care FSA Payment
(Debit) Card- Additional $14.40 annual fee- Annual fee for the Payment Card is deducted from the participant’s FSA account in January
Health Care FSAHealth Care FSA Eligibility for participation in the FSA:
- Employees in permanent, budgeted positions, and employees in positions defined as limited term- Employees do not have to be covered in any of the County’s group insurance plans in order to participate in the Health Care FSA- Dependents must meet IRS definitions in order for their expenses to be covered
Health Care FSAHealth Care FSA Example of Estimated Tax Example of Estimated Tax
SavingsSavingsPRE-TAX AFTER-TAX
ANNUAL SALARY $50,000 $50,000
FSA CONTRIBUTION $1,200 $0
NET TAXABLE SALARY $48,800 $50,000
TAX PERCENTAGE 20% 20%
PAYROLL TAXES $9,760 $10,000
$0 $1,200
NET ANNUAL SALARY $39,040 $38,800
OUT-OF-POCKET HEALTH CARE COSTS
Health Care FSAHealth Care FSAEXAMPLES OF ELIGIBLE EXPENSES
EXAMPLES OF INELIGIBLE EXPENSES
Services provided by a licensed health care practitioner
Vitamins and dietary supplements
Provider Co-Pays, deductibles, RX Co-Pays
Cosmetic surgery or procedures
Over-the-counter medicines and supplies
Athletic or health club memberships
Eye glasses, contact lenses and solutions, LASIK
Teeth whitening
Dental and Orthodontic expenses
Health Care FSAHealth Care FSA Expenses have to be incurred
during the Plan Year (January 1 through December 31)
Plan Year is extended 2 ½ months into the next Plan Year for eligible expenses to be incurred
Claims incurred from 1/1/08 through 3/15/09 can be reimbursed from the 2007 Health Care FSA account if a surplus exists at the end of the plan year on 12/31/07
Health Care FSAHealth Care FSA• eligible expenses will be reimbursed
from the prior year’s balance first, then from the current year’s balance
• all expenses that are to be reimbursed from the 2007 Plan Year’s election must be submitted by 3/31/08
Un-reimbursed contributions are forfeited by the plan participant
Receipts must be provided to Creative Benefits for all expenses
Flexible Benefit PlanFlexible Benefit PlanEmployee EnrollmentEmployee Enrollment
Health Care FSA enrollment cannot be changed during the plan year without a qualified status event:•Death / divorce / legal separation•Marriage•Change in number of dependents•Change in employment status
TAX CALCULATORTAX CALCULATOR
TAX CALCULATORTAX CALCULATOR
TAX CALCULATORTAX CALCULATORpassword: creativepassword: creative
TAX CALCULATORTAX CALCULATORpassword: creativepassword: creative
COUNTY OF COUNTY OF SANTA CRUZSANTA CRUZ
HEALTH CARE FLEXIBLE HEALTH CARE FLEXIBLE SPENDING ACCOUNTSPENDING ACCOUNT
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