Plymouth-Canton Community Schools 2010 Flexible Spending Accounts

1. Plymouth-Canton Community Schools 2010 Flexible Spending Accounts

2. 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

3. Benefit BENEFIT TO YOU: TAX SAVINGS AVOID ALL TAXES: FEDERAL FICA STATE CITY COUNTY 28% - 35% SAVINGS

4. Example

5. Health Care Reimbursement Account (HCRA) Election deducted in equal amounts on a pre-tax 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.

6. 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 • Orthodontics • Eye Exam • Glasses/Contacts • *Contact Lens/Saline Solutions • Hearing Exam/ Hearing Aid • Rx Co-pay • Acupuncture

7. Remember! Over-the-Counter Items • Your Health Care Reimbursement Account can be used for over thecounter drugs through 12/31/10 due to IRS regulation such as: • 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.

8. 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 pre-tax basis per pay period. • Eligible daycare provider (must report income to IRS).

9. IRS Rules 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. Submit early!

10. Claims Process • Submit claims with supporting documentation to Meritain Health via mail or FAX: Meritain HealthPO Box 30111Lansing, MI 48909FAX: 888-837-3725 • Meritain Health processes checks every Monday.

11. Questions on HCRA or DCRA? • If you have any questions concerning the use of the Flex accounts, please call Meritain Health at 800-748-0003 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.

12. The BennyTM Benefits Debit Card New benefit! • 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.

13. Debit Card Usage • Use Benny card to pay the following health-related 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.

19. New look-more info!

20. Flexible Spending Accounts QUESTIONS?