Transcript Document
Kaiser Permanente Health Reimbursement Account For Eligible Kaiser Permanente Employees Southern California Region November 2009 Overview Effective January 1, 2010 Health Reimbursement Account (HRA) Offered to eligible employees represented by Labor Management Partnership (LMP) Unions Tax-free reimbursement for: HRA account funded with 80% of value of unused sick leave as of termination date An account will be opened automatically when eligible out-of-pocket eligible medical, dental, and vision care expenses. No action required Retiree medical eligibility, medical plan and benefit levels are not affected by the HRA HRA Participation Eligible Groups Participating in the HRA: Employees represented by LMP Unions participating in: Earned Time Off Program, or Work/Life Balance Time Off Program Eligible Groups - SCal Groups participating in the Earned Time Off Program International Brotherhood of Teamsters, Local 166, AFL-CIO Kaiser Permanente Association of Southern California Optometrists Kaiser Permanente Nurse Anesthetists Association of Southern California United Healthcare Workers-West, Healthcare Professionals Chapter United Healthcare Workers-West, Psych-Social Chapter Eligible Groups – SCal (Cont’d) Groups participating in the Work/Life Balance Time Off Program United Healthcare Workers—West United Healthcare Workers-West, American Federation of Nurses The Office and Professional Employees International Union, AFL-CIO, CLC, Local 30 (including the California Service Center) United Food and Commercial Workers International Union, Bakersfield United Food and Commercial Workers International Union, Clinical Laboratory Scientists United Food and Commercial Workers International Union, Pharmacy United Nurses Associations of California/Union of Health Care Professionals, NUHHCE, AFSCME, AFL-CIO-CLC United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union, Local 7600 What is the HRA? What is a Health Reimbursement Account? The HRA, also referred to as a Health Reimbursement Arrangement, allows retirees and their eligible dependents to pay for out-ofpocket qualified medical, dental, vision, and hearing care expenses, as well as premiums paid to a Kaiser Permanente medical plan, on a tax-free basis. Eligibility Eligibility requirements at termination of employment: At least age 55 15 or more years of Service as defined under the KP-sponsored defined benefit plan, or the pension plan under the union trust, as applicable HRA eligibility is independent of retirement eligibility Age and years of Service requirement waived for Disability Retirement Eligibility (cont’d) Eligibility requirements at termination of employment (cont’d): eligible for KP medical coverage on last day of employment enrollment in plan not required employees represented by the UFCW Pharmacy must be eligible for the union-sponsored medical plan must be in an employee group that participates in the HRA ACP may participate Eligible Dependents Legal spouse Domestic partner Unless divorced or legally separated Must be of the opposite sex to whom legally married under federal law If they qualify as a dependent on employee’s federal income taxes May not use HRA account to pay expenses for the child of domestic partner if domestic partner claims the child as a dependent on his or her tax return Your unmarried dependent children under age 25 If divorced, children will be considered eligible under the plan if employee is responsible for children’s support and have custody of children for more than half of the calendar year, per the IRC Eligible Expenses IRS determines which expenses are eligible (qualified) for reimbursement May not also claim the expense through your health care plan, insurance program, or income taxes Consult a tax advisor for tax implications Eligible Expenses* Acupuncture Chiropractic care Dental implants, supplies Dental insurance premiums and copayments Hearing exams and treatment Long-term care insurance premiums *Sample list only, not a complete list Eligible Expenses (cont’d) * Medical insurance premiums paid for a Kaiser Permanente medical plan only* Medical copayments Medicare premiums Premiums paid under COBRA (medical, dental) Substance Abuse Treatment Vaccinations Wheelchair Unless you live in an area where KP medical is not offered, or if you are represented by the UFCW, Pharmacy in the Southern California Region Ineligible Expenses* Baldness treatments or hair transplants Dancing lessons Exercise equipment Herbal and holistic drugs or remedies Special diet foods Swimming lessons Vacation expenses (even if recommended by a doctor) *Sample list only; not a complete list How the HRA is established On termination or retirement: HRA-convertible sick leave hours converted at 80% of value Kaiser Permanente deposits into HRA No employee contributions allowed $100 minimum required to establish account No cost for this new benefit Automatic participation, if eligible No opt-out option Work/Life Balance Time Off Program Banked Sick Leave (BSL) Unused hours accrued in 2006 and thereafter converted at 80% of value Deposited into HRA No Credited Service for post-2005 BSL hours Earned Time Off Program Extended Sick Leave (ESL) Effective first pay period of 2010, two ESL banks Current ESL bank Pre-2010 ESL bank ESL hours beginning first pay period 2010 go into current ESL bank Unused ESL hours last pay period 2009 used to establish pre-2010 ESL bank Accrued, unused ESL in current ESL account converted at 80% of value and deposited into HRA No Credited Service for unused post-2009 ESL hours When Your Account Opens Welcome Kit from the HRSC Notification of Enrollment Letter from Ceridian Kaiser Permanente’s contribution to your HRA Quarterly Statements How to File for Reimbursement Submitting claims is easy Submit claims through Ceridian Fax: 1-866-717-3820 Mail: Ceridian FSA Services P.O. Box 534200 St. Petersburg, FL 33747-4200 Reimbursement via check or direct deposit Check on the status of your claim or payment at www.ceridian-benefits.com Claims Guidelines Claims processed weekly No limit on number of claims No minimum/maximum dollar amount Submit claims within 60 days Unused funds carry over from year to year Account Closes HRA Account closes if: Account balance is $0 Account is abandoned Death, with no surviving eligible dependents Upon the death of surviving eligible dependents If during the termination or retirement process, you are deemed ineligible for the HRA Account Suspended Account suspended If you are rehired and return to work at Kaiser Permanente in any capacity Account Reactivated When you terminate again No minimum balance required Customer Service Ceridian Customer Service 1-866-370-2534 or Online at www.ceridian-benefits.com Social Security number (with dashes) Initial password/PIN (last 4 numbers of your SSN reversed) Contact Information For HRA detailed questions, covered expenses and claims: Ceridian Monday-Friday, 5 a.m.-5 p.m. Pacific Time 1-866-370-2534 www.ceridian-benefits.com For HRA general questions: My HR Web site http://insidekp.kp.org/myhr Human Resources Service Center (HRSC) 1-877-4KP-HRSC (1-877-457-4772) HRA Communications Timeline Late November 2009 Customized communications sent to all impacted employees Cover letter from region Brochure containing Summary of Material Modification (SMM) Frequently Asked Questions (FAQ) Claims process January 1, 2010 - HRA becomes effective Thank you!