the university of texas system employee group insurance 2004 information meeting ut flex
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The University of Texas SystemEmployee Group Insurance
2004Information Meeting
UT FLEX
New UT FLEX Administrator
The University of Texas System contracts with new administrator, PayFlex Systems USA, Inc.
Adds more features: New Flex Convenience® Card Over-the-counter drugs eligible 9/1/04 Daily processing of claims (Direct deposits/claim checks out in 72 hours) Toll-free customer service line:(866) UTS-FLEX Toll-free fax line for claims: (877) 230-4283 E-notify
New UT FLEX Administrator
Begins September1, 2004 and
ends August 31, 2005
Eligible expenses must be incurred during the plan year
UT FLEX Plan Year
What’s in it for You ?
No federal income taxNo FICA tax Your taxable income
goes down!Your spendable
income goes up!
Tax Savings!
UT FLEX Reimbursement Accounts
WithoutUT FLEX
WithUT FLEX
Annual Income $30,000 $30,000
UT Flex Deferral $0 $2,400Taxable Income $30,000 $27,600Tax Rate (23%) ($6,900) ($6,348)
Income after taxes $23,100 $21,252Out-of-PocketHealthCare/
DayCare Expenses
$2,400 $0
Net Income $20,700 $21,252
Tax Savings Using UT FLEX-$552!
The UT FLEX Tax Advantage
UT FLEX Reimbursement Accounts
Medical Expense Reimbursement Account
Day Care Reimbursement Account
•Medical
•Dental
•Vision
•Hearing Care
•Day Care expenses for child or disabled adult dependent that allows you and your spouse to continue to work or attend school
•Co-pays
•Deductibles
•Over-the-Counter
Medical and dental
– Deductibles
– Coinsurance
– Copays Insulin, syringes for insulin Rx drug deductibles/copays Chiropractor copays
Eligible Medical Care Expenses
Rx eyewear, contact lenses, and their cleaning solutions
LASIK vision correction surgeryHearing aids and batteries
Dental-orthodontist, bridges, fillingsSpecific medical condition existsSee www.utflex.com or call PayFlex
for IRS-eligible expenses
Eligible Medical Care Expenses
OVERNEW FOR THIS PLAN YEAR!
OVER-THE-COUNTER
DRUGS & MEDICINES* *IRS-
eligible
Over-The Counter Drugs and Medicines
Antacids Anti-diarrhea Anti-fungal ointments and
creams Antiseptic ointments and
creams Cold remedies including
sore throat sprays, lozenges, nasal sprays, cough syrups, cough drops
Eye drops First-aid antibiotic
ointments and creams
Gas Relief Hemorrhoid ointments and creams Laxatives Lice treatments Motion-sickness pills Pain Relievers including
arthritis pain, back/head pain
Sleep Aids Stop smoking gums
/patches Yeast infection products Vapor rubs
Eligible Over-the-Counter Drugs and Medicines
Ineligible Over-the-Counter Drugs and Medicines
Anti-bacterial soaps Acne treatments Dandruff shampoo Dry skin
creams/treatments Foot care products Hair loss
treatments Lactose intolerance
supplements
Mouthwash Suntan and
sunscreen lotion Dietary
supplements or replacements
Supplements like fiber, calcium, etc
Ineligible Medical Expenses
Cosmetic Reasons
General Good Health
Vitamins, Herbal and Dietary supplements
Expenses necessary for you and, if married, your spouse to work
Child care or adult day care expenses
For dependent children under 13 or incapable of self support
For a spouse or eligible dependent who is physically or mentally incapable of self-care
Compare tax savings of UT FLEX Day Care Reimbursement Account with federal childcare tax credit
Day Care Reimbursement Account
Qualifying Childcare Providers Include:
Private sitterLicensed day care providerAn in-home provider as long as
the care provider is not your child under age 19, or someone you claim as a dependent for income tax purposes
Day Care Reimbursement Account
UT FLEX Reimbursement Accounts
Medical Expense Reimbursement Account
Day Care Reimbursement Account
Maximum: $5,000 per plan year
100% of your Medical Reimbursement Account Election is available for you to spend 9/1/2004!
Maximum: $5,000 per plan year
$208 is the monthly maximum if married and filing separate tax returns
Minimum: $180 per plan year ($15 x 12 months or $20 x 9 months)
In any given calendar year, the combined pre-tax dependent day care deductions cannot exceed $5,000
for tax filing purposes.
UT FLEX Reimbursement Accounts
After September 1st, 2004,
You may be reimbursed by:
•Flex Convenience® Card
•Direct deposit to checking or savings account
•Paper check mailed to home
Eligible expenses must be incurred during the plan year: September 1, 2004 through August
31, 2005 and while you are enrolled in the plan
UT FLEX Direct Deposit
For direct deposit, all participants enrolled in UT FLEX for the new plan year must complete a PayFlex direct deposit form and send it to PayFlex
The form is located at www.utflex.com Please complete the form and attach a
“voided” check Return to PayFlex by mail or toll-free fax
Important UT FLEX Reminders!
Enrollment in UT FLEX is for the full plan year,
unless a Qualified Status Change permits change.
Remember: To participate in UT FLEX, you must enroll or
re-enroll during each year’s Annual Enrollment period.
Participants must apply for the Flex Convenience® Card
during annual enrollment or wait until next year!
PayFlex will process UT FLEX reimbursable expenses
(including IRS-eligible over-the-counter items) incurred
during the new plan year, 9/1/04 through 8/31/05.
Claims for eligible expenses incurred through 8-31-04 will be processed by your current administrator, FlexBen, until November 30, 2004 (end of claims run-out period).
UT FLEX Convenience® Card
UT FLEX Convenience® Card
The Flex Convenience® Card is a signature-based MasterCard “debit card” that accesses your PayFlex spending account.
Use it to pay for IRS-QUALIFIED medical/dental/vision/hearing care expenses-just like minutes from a “pre-paid” phone card!
Use the card until the plan year election amount is used up! You can check your UT FLEX balance frequently, either on line or by calling (866) UTS-FLEX! Transactions in excess of the total election amount or the remaining balance will be rejected by the merchant.
UT FLEX Convenience® Card Advantages:
Convenient & Easy to Use!No claim form to complete!Dollars come out of your UT FLEX account not your pocket!FAST- no waiting for a reimbursement!Provide documentation to PayFlex only when requested by letter!Accepted at qualified merchants for IRS-qualified medical expenses
UT FLEX Convenience® Card Reminders
Save the flex card receipts & documentation for one year. PayFlex may request documentation based on IRS guidelines.
Keep eligible card purchases separate from other purchases made at the same store.
Wal-Mart is currently not accepting any signature-based MasterCards. This includes the Flex Convenience Card.
Do not throw away the card when your account balance reaches $0. The card does not expire for three years, and PayFlex will “reload” it next year with your new election amount.
UT FLEX Convenience® Card
The UT FLEX Convenience® Card must be requested
by the UT TOUCH System during Annual Enrollment or by Paper Enrollment Form
One card per member and additional cards for dependents available by request at no additional cost. Order online after you receive your card.
The Flex Convenience® Card is for
medical expenses only,
not for day care expenses.
A $9.00 flex card fee will be deducted from your UT FLEX account automatically in September, 2004
No card replacement fees (lost/stolen)
Card is valid for three years
Medical Expense Reimbursement: available account balance
determined by your plan-year election amount
Receipts/documentation needed only when requested
by PayFlex by letter per IRS guidelines.
IMPORTANT: Keep all documentation for your records!
UT FLEX Convenience® Card
Flex Convenience® Card Mailing
Participants electing the Flex Convenience® Card will receive the card by mail at their home address
The card is mailed in a plain white envelope with PayFlex Systems USA, Inc., Omaha, NE as the return address. Be on the lookout for it!
Cards will be processed as enrollment files are received from EGI. Your card should arrive around 9/1/04
Information, including how to use the card, do’s and don'ts will accompany the card
Fast Claims Processing!
Reimbursement of Paper Claims
Reimbursement of Paper Claims
CLAIMS PROCESSED DAILY! Reimbursements
sent by check or direct deposit within 3 working days!
Fax your claim toll-free or mail or to PayFlex along with claim form, receipts and/or documentation including EOB statements.
PayFlex computer servers receive your paper fax directly-no lost faxes, faster claims processing!
Claims can be submitted at any time for expenses incurred during the plan year, but must be received by PayFlex no later than November 30 following the end of the plan year (August 31).
Customer Service
UT FLEX 24-Hour Info Line: Toll-free (866) 887-3539 (UTS-FLEX) for account balances; claim counselors available M-F 7:00 a.m.-5:00 p.m. Central Time
Website: www.utflex.com has account information, downloadable claim forms, direct deposit forms, eligible expenses, Q and A, and Flex calculators
e-Notify: Sends e-mail to participants on status of paper claims
Quarterly statements
You will receive a year-end post card reminder by U. S. mail on approx. July 1st, 2005 (60 days prior to end of the plan year), if you have a UT FLEX balance greater than $10
www.utflex.com
Account balances, claims submitted
Claims submitted
The “big” list of I RS-eligible Health Care &Dependent Care expenses.
Questions & Answers to help you use UT FLEX
Forms & more. Change of bank, claim f orms, etc.
A useful tool to help determine yourUT FLEX Contribution f or the new Plan Year
Helps determine your Dependent Care Tax Savings
www.utflex.com
SPECIAL IRS PLAN RULES
Once you establish your plan year election, you may only change their election if they experience a “change in family status.”
Any amount left in a UT FLEX account at the end of the plan year will be forfeited. For the fiscal year ending 8/31/05, participants may file plan year claims until November 30, 2005.
You must enroll in UT FLEX during Annual Enrollment every year to participate!
Even if you or an eligible dependents are covered under another health insurance plan, any eligible expenses can still be reimbursed by UT FLEX!
Determine Your UT FLEX Contribution
Only consider expenses that you know you and/or dependents will POSITIVELY, WITHOUT A DOUBT, incur during the plan year
You can’t predict the future: however, many out-of-pocket expenses recur every year
Childcare or adult daycare expenses usually can be determined very accurately
Determine those out-of-pocket expenses that occur every year:
Rx drugs, office visit co-payments, orthodontist visits Contact lenses & cleaners, OTC drugs/medicines Childcare or adult daycare expenses
Determine those out-of-pocket expenses that youare certain you will incur during this plan year:
Major dental work: crowns, bridges, root canals LASIK vision correction surgery Prescription eyeglasses or Prescription sunglasses Hearing aid
Determine Your UT FLEX Contribution
Important Reminders
Review your EXPECTED EXPENSES. Do your homework! Ask your tax advisor, co-workers, friends and relatives.
Only consider the expenses you know absolutely, positively, without-a-doubt you will incur during the plan year!
BE CONSERVATIVE! Remember the “use it or lose it” rule, but don’t let it scare you! Take a close look at this valuable tax break. It could increase your spendable income.
UT FLEX Administrator
PayFlex Systems USA, Inc.P.O. Box 3039
Omaha, Nebraska 68103-3039Phone Toll-Free (866) 887-3539
(866-UTS-FLEX) Fax Toll-Free (877) 230-4283
www.utflex.com
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