IBIS 105 and 125 Advantage plans

1. IBIS 105 and 125 Advantage plans Presented by: Jolene Mennenga, AVP 105/125 Administrator

2. New Document Binders Storage for: Plan Documents/Summary Plan Descriptions Amendments Data Gathering Forms 125 Restatement of Plan Business Associate Agreements Third Party Administrative Agreements

3. Year End Prep for 2012 Plans • Watch for bulletin announcements concerning: • Deadline for Data Gathering form • Employee Communication • Open Enrollment • Final numbers for 2012 plan year enrollment

4. 2011 Year End Timeline • Sept. 26th DGF bulletin • October 14th Deadline to complete the DGF • October 16thOPEN online flex enrollment • December 19thCLOSE online flex enrollment • December 31stLAST paper elections accepted

5. 2011 Year End Timeline • December Reminders: • Have employees check elections online • Have HR check elections with payroll/accuracy • Have HR remind employees to enroll

6. 125 Reminders: • As of 01-01-11, prescriptions required for OTC item reimbursement (HCR) • 2013 MedFSA will have a cap of $2500 per participant (HCR) • Manual claim submission deadline is Wednesday 10:00AM • Last claim incur date is December 31st for plans without grace period (March 15th w/grace) • Last claim submission date is March 31st for plans without grace period (June 15th w/grace) • 30 days for change of status due to qualifying events

7. 125 Pre-Tax Reminders • Remember: when you pre-tax premium, you not only follow the rules of the insurance carrier but also the rules of the 125 plan. • Must have a qualifying event to drop coverage • Must have a qualifying event to change premium • Must have a qualifying event to add coverage pretax in the middle of the plan year • Refer to Section XII of plan document for information

8. Plan Document and SPD • Make sure the participants have a copy of the SPD or communicate one is available to them • When plan changes are made – update the 125 Restatement of Plan and give to participants • Reference Plan Document – Section XII for Qualifying Events – Change of Status

9. Top 10 Reasons to Implement an FSA • FSA’s save Employers money (FICA/FUTA) • FSA’s save Employees money (Fed/State/FICA) • FSA’s have a flexible plan design/benefits • Use-it-or-lose it rule often helps employers • Uniform coverage rule helps employees with unexpected costs • FSA’s help with out of pocket costs and high cost expenses such as ortho/vision • Health FSA’s not always subject to COBRA • FSA’s can cover adult children • Allows submission of OTC expenses with a script • Tax savings on Dependent care is immediate

10. COBRA for 105 and 125 Plans • For 105 Plans • Must offer same plan as when employed • Employer may charge the market value of the benefit received – meaning the premium of the employees “buy-down” plan plus 2% • For 125 Plans • Offered for: • premium plans • MedFSA benefit • LFSA Benefit • Offered only to MedFSA and LFSA when there is a positive balance in account at termination • Must NOT offer if there is a negative balance in flex account • Do not offer on DCAP

11. Important 105 Information • CMS Section 111 Filing for 105 Plans • IBIS is completing on your behalf • Information communicated to Employer as needed • Employer needs to respond in a timely manner when requested

12. Important 105 Information • 105 Plan w/$250-750 Deductible “Buy Down” • IBBP is no longer offering the $250/750 Deductible • IBIS will price $250/750 deductible plan for 2 years (2012, 2013) for the COBRA pricing and the W-2 reporting for those who need it.

13. HSA Reminders: 1. Contributions made by Employers must be made equitably for all eligible HSA Participants 2. Contributions made by Employees on a pre-tax basis can be changed mid-year without an event, unlike flex 3. Dependent definition for reimbursement from the HSA is still the “IRS” definition of a qualifying tax dependent, it did not change to the new age 26 definition 4. Follow guidelines for “Eligible Participant” when allowing employees to move to the HDHP/HSA plans & contribute 5. 2012 Max Contribution Limits Single $3,100 Family $6,250

14. ONLINE Resources: Employer: Resource Manuals Weekly activity reports Annual enrollment reports Access to Plan Documents Access to Forms/PowerPoints/Brochures Medical Flex Spending Account Expense Table

15. ONLINE Resources: Employee: • Account balances • EOB history • Medical Flex Spending Account Expense Table • Online flex enrollment • Access to Forms/PowerPoints/Brochures

16. Contact Information: • Email address for Claim or Plan Questions: flexadmin@bankers-ins.com • Fax number for Claim Submission 515-286-4244 • 105/125 Customer Service number 1-800-258-1415 (select 2, then 3 for flex benefit specialist)