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2012 Flexible Spending Accounts WORKSHOP

2012 Flexible Spending Accounts WORKSHOP. Tax Favored Accounts. Medical Reimbursement Standard HMO and PPO Members Maximum Annual Contribution $5,000 per year or $416.00 per month Health Savings Account Health Investor HMO and PPO Maximum Annual Contribution (includes State Contribution)

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2012 Flexible Spending Accounts WORKSHOP

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  1. 2012 Flexible Spending Accounts WORKSHOP

  2. Tax Favored Accounts • Medical Reimbursement • Standard HMO and PPO Members • Maximum Annual Contribution • $5,000 per year or $416.00 per month • Health Savings Account • Health Investor HMO and PPO • Maximum Annual Contribution (includes State Contribution) • Individual = $3,100 • Family = $6,250 • Limited Purpose Medical Reimbursement Account • Only for Employees Enrolled in the Health Investor HMO and PPO • Maximum Annual Contribution • $5,000 per year or $416.00 per month • Can only be used for preventative care expenses not covered by health plan, dental, and vision • Dependent Care Reimbursement Account • Maximum Annual Contribution • $5,000 per year or $416.00 per month • Dependent Care Only

  3. How FSAs Work • You set aside pre-tax dollars from your paycheck each pay period • You submit eligible expenses for reimbursement throughout the year. • You are reimbursed from your FSA for the eligible expenses you submit

  4. Savings • Federal Income Tax and Social Security Tax • Creates about a 20% savings • Savings could be more depending on your income tax rate • No income tax – social security tax savings = 7.5% or $7.50 for each $100.00 you spend

  5. myMRA Card • You can use the card • At any eligible health care provider that accepts Visa or MasterCard. • In the new plan year to pay for expenses with last year’s funds through the grace period that ends March 15, 2011. • For certain over-the-counter (OTC) items. • For mail order drugs. • At most grocery stores and discount retailers • To purchase prescription drugs without additional paperwork.

  6. Cost Savings Calculators • Healthcare Expenses • Medical Reimbursement Account Estimator • Limited Purpose Medical Reimbursement Account Estimator • Dependent Care Reimbursement Account Estimator

  7. Important Considerations • You must use any money you contribute to a Medical Reimbursement Account or a Dependent Care Reimbursement Account on expenses incurred by the end of the plan year. • Must use between January 1, 2012 and March 15, 2013 • Must file claims by April 15, 2013

  8. Important Considerations • You must submit your claim by the deadline or your account balance will be forfeited. • You cannot move money between the two accounts during the year. This means you can't use your contributions to a Medical Reimbursement Account for a dependent care expense or vice versa. • You cannot change your Reimbursement Account contributions during the plan year unless you have a qualifying status change event. • You cannot enroll in both a Medical Reimbursement Account and a Health Savings Account (HSA), although you can have a Limited Purpose Medical Reimbursement Account and an HSA. • If you enroll in a Health Investor medical plan, consider enrolling in the HSA to take advantage of the state's HSA contribution • If you need additional dollars for dental, vision, preventive medical or over-the-counter health expenses not covered by the HSA, consider the Limited Purpose Medical Reimbursement Account. Remember, the HSA carriers forward year-to-year and earns interest. • You cannot enroll in both a Medical Reimbursement Account and a Limited Purpose Medical Reimbursement Account. • The minimum annual deduction amount for each Reimbursement Account is $60.

  9. Grace Period • FSAs have a "use it or lose it" policy, which means you forfeit any amounts unused and not reimbursed for services received during the Plan year. You may use what you set aside for the Plan year for services up to March 15 of the following year.

  10. Medical Reimbursement Account • Enroll if you have • Standard PPO or HMO • No Health Coverage • Not Available with HIHP HMO or PPO • How much you can contribute • From $60 to $5,000 in pre-tax dollars • Use the account to pay yourself back for • Out-of-pocket medical, prescription, dental, vision, and over-the-counter medication expenses: • Not paid by insurance or reimbursed from any other source

  11. Limited Purpose Medical Reimbursement Account • Enroll if you have • Any Health Investor HMO or Health Investor PPO • Not Available with Standard HMO or PPO • How much can you contribute • From $60 to $5,000 in pre-tax dollars • Use the account to pay yourself back for: • Out-of-pocket dental, vision and over-the-counter medication expenses not paid by insurance or reimbursed from any other source • NOT AVAILABLE FOR MEDICAL EXPENSES

  12. Dependent Care Reimbursement Account • Enroll if you have: • Eligible expenses for “day care” for an eligible child or qualifying relative so you can work • How much can you contribute • From $60 to $5,000 in pre-tax dollars • $2,500 if you’re married filing separate tax returns • Use the account to pay yourself back for: • Care for a child, disabled spouse or qualifying relative who: • is dependent on you • needs care so that you (and your spouse if you’re married) can work

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