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Two Types of Accounts:◦ FSA
Pre-tax money for out-of-pocket medical expenses
Expenses can be for you, your spouse or any of your tax dependents (regardless of whose insurance the dependent is on)
◦ Dependent Care Assistance Program (DCAP) Allows for reimbursement for childcare expenses
Elder care expenses also eligible
Most employees save at least 20% on each dollar that is contributed For example:
◦ Federal taxes 15%◦ F.I.C.A 7.65%◦ Total 22.65% x $100 = $22.65
Check out the Tax Savings Calculator at www.asiflex.com/pebb to see your expected savings
All medical expenses as defined in Section 213 of the Internal Revenue Code ◦ Insurance premiums and long term care are not eligible◦ Detailed list of eligible expenses on www.asiflex.com
Qualifying expenses for you or your dependents whether or not on your employer’s insurance policies◦ E.g. your spouse can be on a different employer’s insurance
program and still have expenses qualify through your plan Any medical service provided during the plan year
that insurance does not reimburse
Enrollment must be completed during the State of Washington’s Open Enrollment Period◦ Open enrollment ends November 30th, 2007◦ Enroll online at www.asiflex.com/pebb
Up to $2,400 per plan year per participant◦ If your spouse works for the State of Washington, you may
each set aside up to the max
Annual election amount deducted over the course of the plan year (January 1, 2008 –December 31st, 2008)
Full Annual Election available to you January 1
1) Submit a claim & supporting documentation & receive reimbursement
Or
2) Utilize the FSA Debit card to pay for certain expenses
ASIFlex can issue direct deposits to a checking or savings account◦ If you are already enrolled for DD, you don’t need to set
this up again; it will stay the same from year-to-year
You can sign up to receive notice of reimbursements via email
Payments are issued within one business day of receipt of the claim (up to your annual election)
The Debit Card is optional to health care FSA users.◦ An application for the card will come with your
confirmation of enrollment packet◦ If you had the card in 2007, you do not have to re-
apply
The debit card will be issued within 10 business days of ASIFlex’s receipt of the application.
If you currently have a card, it is still valid (you do not need to re-apply)
Use the debit card for out-of-pocket medical expenses only◦ Cannot be used to pay for DCAP expenses
Card use is restricted to use at:
1)Known Health Care Providers2)Retail outlets with an inventory control
system in place
Health Care Providers include:◦ Hospitals◦ Health clinics◦ Opticians◦ Dental Offices◦ Pharmacies
Typically pharmacies within grocery stores do not meet this qualification
The card reads the Merchant Category Code (MCC) when it is swiped and the card determines if the provider has an acceptable MCC◦ If it does not have an allowable MCC, the card will be
declined
The card can be used at retail outlets that do not have a health care MCC if the retail store has implemented the inventory control system
This system only allows eligible expenses to be paid for with the card◦ E.g. if you attempt to purchase a six pack of cola and a
bottle of aspirin, the card will pay for the aspirin and then you will have to provide a separate form of payment for the cola
◦ No documentation required for purchases at these stores
Currently in place at:◦ Wal-Mart Stores◦ Sam’s Club◦ Walgreens◦ Drugstore.com
Many more anticipated as of 1/1/08◦ Safeway◦ CVS◦ Jewel/Osco◦ Target
Every debit card transaction will have to be substantiated somehow, either electronically or with a paper claim
Electronic substantiation◦ Known co-pays◦ Multiples of up to five known co-pays
Purchases made at retail outlets with inventory control system
Paper claims must be submitted for all other transactions
ASIFlex will administer the DCAP for services provided from 1/1/08 forward
All claims for services provided in 2007 must be submitted to DRS◦ If you submit claims for services in 2007 to
ASIFlex, they will be returned to you unpaid
Provides a tax break on child/elder care expenses incurred while:
◦ You go to workOr◦ You and your spouse (if married) go to workOr◦ You go to work and your spouse:
Looks for work Pursues an educational opportunity
Other expenses are not eligible.◦ i.e. getting a babysitter for Friday night date
night is not an eligible expense
Children under the age of 13*
Older dependents unable to care for themselves who live in your home at least 8 hours per day
* Must be custodial parent with over 50% custody if divorced.
Costs of food and transportation if itemized
Educational expenses◦ Includes private schools
Overnight camps
Payments to your spouse or any other dependent of yours
Payments to your child under 19, even if he/she is not your dependent
Family maximum of $5,000/year◦ This is an IRS maximum per household
Example:$2,600 for the plan year contributed each
paycheck for 26 checks = $100.00 per check
Deposit directly into your bank account
Receive notice of deposit via email
Payments are made within one business day of receipt
Funds in one category cannot apply to expenses in another category.
Expenses for services provided during the plan year and the additional 2 1/2 month grace period.
Unused funds will go back to your employer.◦ Use it or lose it◦ Start small if you are unsure of how much you will
actually spend
2008 Plan year is 1/1/2008 - 12/31/2008
Expenses for services provided 1/1/2009 – 3/15/2009 can be used to claim 2008 Plan Year funds
◦ Grace period provides extra time to incur expenses if you set aside too much money
When filing a claim with ASIFlex, expenses will be automatically applied to old year first, unless the participant requests otherwise
◦ Reversals between plan years are allowed later, but a written request must be provided by the participant before the claims filing deadline
Online through ASIFlex’s website◦ www.asiflex.com/pebb◦ Select “Enrollment”
Or you can submit a paper enrollment form to ASIFlex
All enrollments must be completed by November 30th
You must re-enroll, even if you don’t want your deduction amount to change