Transcript Slide 1

Plymouth-Canton
Community Schools
2010
Flexible Spending
Accounts
Flexible Spending Accounts
• Two Accounts
– Medical Reimbursement Account (HCRA)
– Dependent Care Reimbursement Account (DCRA)
• Use of Pre-Tax Dollars for Predictable
Expenses
• Governed by Section 125 of the Internal
Revenue Code
Benefit
BENEFIT TO YOU:
TAX SAVINGS
AVOID ALL TAXES:
FEDERAL
FICA
STATE
CITY
COUNTY
28% - 35%
SAVINGS
Example
Gross Salary
Yearly Amount
Deposited into HCRA
Taxable Income
Tax (25%)
Net Salary
Yearly Out-of-Pocket
Medical Expense
Take Home Pay
Tax Savings
Without the
With the
HCRA / DCRA HCRA / DCRA
$25,000
$25,000
$0
$1,000
$25,000
$6,250
$18,750
$1,000
$24,000
$6,000
$18,000
N/A
$17,750
None
$18,000
$ 250
Health Care Reimbursement Account (HCRA)
• Election deducted in equal amounts on a pretax basis per pay period.
• You do not need to enroll in a medical plan
offered by Plymouth-Canton Community
Schools to enroll in the HCRA.
• Eligible expenses: medical, prescription drug,
dental and vision expenses not covered by
insurance plan, hearing expenses, mileage.
Eligible HCRA Expenses
• Deductibles
• Co-Insurance
• Office Visit Co-pays
• Well Baby Care
• *Over-the-Counter Drugs
• Immunizations
• Psychologist
• Physical Therapy
• Chiropractor
*thru 12/31/10 per IRS regs
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Orthodontics
Eye Exam
Glasses/Contacts
*Contact Lens/Saline
Solutions
• Hearing Exam/
Hearing Aid
• Rx Co-pay
• Acupuncture
Over-the-Counter Items
Remember!
• Your Health Care Reimbursement
Account can be used for over the
counter drugs through 12/31/10 due to IRS
regulation such as:
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Cold medicines
Antacids
Pain relievers
Allergy medicine
Contact Solution
And many other drugs used to alleviate or treat personal
injuries or sickness
Please note that drugs purchased for cosmetic reasons (i.e. rogaine), and drugs
purchased for general good health (including dietary supplements and vitamins) are
NOT reimbursable under your Health Care Reimbursement Account.
Dependent Care Reimbursement Account
• Annual Maximum $5,000.
• Eligible dependent care/elder care expense.
– Under 13 and incurred so both parents can work.
– Tax dependent who is unable either physically or
mentally to care for himself/hersel.f
• Election deducted in equal amounts on a pretax basis per pay period.
• Eligible daycare provider (must report income
to IRS).
IRS Rules
Submit early!
• Forfeiture Rule
• You must incur expense to file claim
• Election is good for entire plan year
– Changes only allowed for qualified change in family
status
• Participants have 90 days from the end of the plan year
(11/30) to submit eligible dependent care claims and
documentation on denied claims for reimbursement.
• Health care claims Grace Period: Participants have until
12/30 to submit eligible health care claims. (Expenses
incurred up to 11/15 may be reimbursed from prior plan
year.) All claims, substantiation & documentation on
denials must be submitted by 12/30.
Claims Process
• Submit claims with supporting documentation
to Meritain Health via mail or FAX:
Meritain Health
PO Box 30111
Lansing, MI 48909
FAX: 888-837-3725
• Meritain Health processes checks every
Monday.
Questions on HCRA or DCRA?
• If you have any questions concerning the use of the
Flex accounts, please call Meritain Health at 800-7480003 and follow the menu prompts for Flex Spending
Accounts Customer Service (press option 2).
• 24-hour Access: You may also check the balance of
your flexible spending account 24-hours a day through
our automated claim status information system or
through our web site at www.mymeritain.com. First
time web site users will need to create an account.
New benefit!
The BennyTM Benefits Debit Card
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A quick way to access FSA Health Care funds.
Reduces your out-of-pocket expenses.
Reduces claims submission.
The card holds the amount of your annual FSA
Healthcare election and works like any VISA or
MasterCard for eligible expenses.
• Important change: Automatic rollover eliminated.
• Do not use the debit card for Dependent Care
FSA expenses.
Debit Card Usage
• Use Benny card to pay the following healthrelated expenses:
– Prescription copays and deductibles
– Medical coinsurance and deductibles
– Out-of-pocket dental expenses
– Out-of-pocket vision expenses (Lasik surgery, eyeglasses,
contact lenses)
– Eligible over-the-counter purchases
Visit www.sig-is.org to check if your merchant identifies industry
standard FSA eligible items at checkout .
If you elect not to use your card, you may destroy it or you may
secure it and not activate it.
New look-more info!
Flexible Spending Accounts
QUESTIONS?