Transcript Slide 1

Section 125 Flexible Spending Accounts
with the
Verity National Star Card
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Two Types of
Flexible Spending Accounts
Health Care FSA
Dependent Care FSA
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What is a Health Care FSA?
A “Health Care FSA” is a program
employees can use to pay for
medical expenses that are not
reimbursed through insurance
or any other arrangement.
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Health Care FSA Eligible Expenses
(If not covered by your primary medical insurance)
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Deductibles and Co-pays
Contact Lenses
Special Tests
Laboratory Fees
Prescription Drugs
Coinsurance
Psychotherapy
Fertility Treatments
Crutches
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Eyeglasses
Vision Care
Hearing Aid Devices
Dental Expenses
Optometrist Services
Physical Exams
Acupuncture
Orthodontia
X-Rays
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New Over-The-Counter (OTC) Restrictions
• Beginning January 1, 2011, all purchases of OTC drugs,
medicines and biologicals will require another form of
payment. A copy of the receipt along with the doctor’s
prescription will need to be submitted directly to Verity
National Group for reimbursement.
• The following categories of OTC drugs and medicines require a
doctor’s prescription and thus, as of January 1, 2011 were no longer
able to be purchased using the Verity National Star Card:
Acid Controllers
Antibiotic Products
Anti-Gas
Anti-parasitic Treatments
Cold Sore Remedies
Laxatives
Feminine Anti-Fungal/Anti-Itch
Motion Sickness
Respiratory Treatments
Stomach Remedies
Allergy & Sinus
Anti-Diarrheals
Anti-Itch & Insect Bite
Baby Rash Ointments/Creams
Cough, Cold & Flu
Hemorrhoid Preps
Digestive Aids
Pain Relief
Sleep Aids & Sedatives
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How do I Estimate
FSA Contributions in Advance?
• Review similar expenses over the last couple of years.
• Consider changes to family health care needs that may occur
during the year.
• Use the worksheet at www.VerityNational.com/Prosperitybank
to balance risk of forfeiture versus tax saving opportunities.
• For the 2012 Plan year, the FSA plan has a minimum annual
election amount of $300.00 and a maximum annual election
amount of $6000.00. If you elect less than $500 in the FSA plan
there is a one time charge of $12 deducted from payroll.
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What is a Dependent Care FSA?
Dependent Care Accounts (DCAs)
reimburse elder or child care expenses
that allow the employee and his or her
spouse to be “gainfully employed.”
PLEASE NOTE: IRS mandates that the
maximum election per household is $5000
per calendar year.
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Dependent Care Eligible Expenses
(For Eligible Tax Dependents)
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After-school care or extended day care programs
Au pair
Babysitter
Before-school care
Day Camp
Elder Care
Nanny
Preschool /
Nursery school
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Do I Need to Enroll
to Participate in an FSA?
Yes!
You must enroll each year during
Open Enrollment. Contributions
do not automatically continue from
one year to the next.
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Can I Participate in both Health and
Dependent Care FSAs?
Yes!
However, IRS regulations require the
accounts to operate separately.
You cannot use funds from one to
pay for expenses from the other.
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Verity National Star Card
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Instant access to your account funds
Automatically issued when you enroll
Rarely required to pay out-of-pocket
Virtually eliminates claim forms and receipts
No more waiting for reimbursement checks
Instant online access to your account balance
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How do I Use the Card?
• Star Card is restricted to use for
FSA-eligible services and purchases,
per the IRS
• Smart technology allows only the
appropriate account to be debited
• Not eligible for use at ATMs or other
unqualified merchant locations
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Provider doesn’t Accept Credit Cards?
• Pay for eligible expense(s) out-of-pocket and
then...
• Mail, fax, or email claim form and receipt to:
Verity National Group, Inc.
P.O. Box 780159
San Antonio, TX 78278
Fax: (210) 348-7112
Email: [email protected]
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Section 125 Flexible Spending Accounts
Please consider taking advantage of this
convenient, cost-saving benefit…
Sign Up Today!
Thank You…
The Verity National Star Card Team
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