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For Eligible Kaiser Permanente Employees Georgia 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:
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For Eligible Kaiser Permanente Employees Georgia 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: • out-of-pocket eligible medical, dental, and vision care expenses. • HRA account funded with 80% of value of unused sick leave as of termination date • An account will be opened automatically when eligible • No action required • Retiree medical eligibility, medical plan and benefit levels are not affected by the HRA
Regions Affected • Colorado • Georgia • Mid-Atlantic States • Northern California • Northwest • Ohio • Southern California
Eligible Groups - Georgia • United Food and Commercial Workers, Local 1996 (Professional) • United Food and Commercial Workers, Local 1996 (Technical/Clerical)
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-of-pocket 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 • must be in an employee group that participates in the HRA
Eligible Dependents • Legal spouse • Unless divorced or legally separated • Must be of the opposite sex to whom legally married under federal law • Domestic partner • 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
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-eligible 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
PTO and Extended Sick Leave • October 2010, new Extended Sick Leave (ESL) account • Based on unused Paid Time Off (PTO) days • HRA-eligible ESL hours
When Your Account Opens • Welcome Kit • 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: • Employee Services • (404) 364-7145
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