The University of Texas System Employee Group Insurance 2004 Information Meeting UT FLEX

The University of Texas SystemEmployee Group Insurance

2004Information Meeting

UT FLEX

New UT FLEX Administrator

The University of Texas System contracts with new administrator, PayFlex Systems USA, Inc.

Adds more features: New Flex Convenience® Card Over-the-counter drugs eligible 9/1/04 Daily processing of claims (Direct deposits/claim checks out in 72 hours) Toll-free customer service line:(866) UTS-FLEX Toll-free fax line for claims: (877) 230-4283 E-notify

New UT FLEX Administrator

Begins September1, 2004 and

ends August 31, 2005

Eligible expenses must be incurred during the plan year

UT FLEX Plan Year

What’s in it for You ?

No federal income taxNo FICA tax Your taxable income

goes down!Your spendable

income goes up!

Tax Savings!

UT FLEX Reimbursement Accounts

WithoutUT FLEX

WithUT FLEX

Annual Income $30,000 $30,000

UT Flex Deferral $0 $2,400Taxable Income $30,000 $27,600Tax Rate (23%) ($6,900) ($6,348)

Income after taxes $23,100 $21,252Out-of-PocketHealthCare/

DayCare Expenses

$2,400 $0

Net Income $20,700 $21,252

Tax Savings Using UT FLEX-$552!

The UT FLEX Tax Advantage


Medical Expense Reimbursement Account

Day Care Reimbursement Account

•Medical

•Dental

•Vision

•Hearing Care

•Day Care expenses for child or disabled adult dependent that allows you and your spouse to continue to work or attend school

•Co-pays

•Deductibles

•Over-the-Counter

Medical and dental

– Deductibles

– Coinsurance

– Copays Insulin, syringes for insulin Rx drug deductibles/copays Chiropractor copays

Eligible Medical Care Expenses

Rx eyewear, contact lenses, and their cleaning solutions

LASIK vision correction surgeryHearing aids and batteries

Dental-orthodontist, bridges, fillingsSpecific medical condition existsSee www.utflex.com or call PayFlex

for IRS-eligible expenses

Eligible Medical Care Expenses

OVERNEW FOR THIS PLAN YEAR!

OVER-THE-COUNTER

DRUGS & MEDICINES* *IRS-

eligible

Over-The Counter Drugs and Medicines

Antacids Anti-diarrhea Anti-fungal ointments and

creams Antiseptic ointments and

creams Cold remedies including

sore throat sprays, lozenges, nasal sprays, cough syrups, cough drops

Eye drops First-aid antibiotic

ointments and creams

Gas Relief Hemorrhoid ointments and creams Laxatives Lice treatments Motion-sickness pills Pain Relievers including

arthritis pain, back/head pain

Sleep Aids Stop smoking gums

/patches Yeast infection products Vapor rubs

Eligible Over-the-Counter Drugs and Medicines

Ineligible Over-the-Counter Drugs and Medicines

Anti-bacterial soaps Acne treatments Dandruff shampoo Dry skin

creams/treatments Foot care products Hair loss

treatments Lactose intolerance

supplements

Mouthwash Suntan and

sunscreen lotion Dietary

supplements or replacements

Supplements like fiber, calcium, etc

Ineligible Medical Expenses

Cosmetic Reasons

General Good Health

Vitamins, Herbal and Dietary supplements

Expenses necessary for you and, if married, your spouse to work

Child care or adult day care expenses

For dependent children under 13 or incapable of self support

For a spouse or eligible dependent who is physically or mentally incapable of self-care

Compare tax savings of UT FLEX Day Care Reimbursement Account with federal childcare tax credit


Qualifying Childcare Providers Include:

Private sitterLicensed day care providerAn in-home provider as long as

the care provider is not your child under age 19, or someone you claim as a dependent for income tax purposes



Medical Expense Reimbursement Account


Maximum: $5,000 per plan year

100% of your Medical Reimbursement Account Election is available for you to spend 9/1/2004!

Maximum: $5,000 per plan year

$208 is the monthly maximum if married and filing separate tax returns

Minimum: $180 per plan year ($15 x 12 months or $20 x 9 months)

In any given calendar year, the combined pre-tax dependent day care deductions cannot exceed $5,000

for tax filing purposes.


After September 1st, 2004,

You may be reimbursed by:

•Flex Convenience® Card

•Direct deposit to checking or savings account

•Paper check mailed to home

Eligible expenses must be incurred during the plan year: September 1, 2004 through August

31, 2005 and while you are enrolled in the plan

UT FLEX Direct Deposit

For direct deposit, all participants enrolled in UT FLEX for the new plan year must complete a PayFlex direct deposit form and send it to PayFlex

The form is located at www.utflex.com Please complete the form and attach a

“voided” check Return to PayFlex by mail or toll-free fax

Important UT FLEX Reminders!

Enrollment in UT FLEX is for the full plan year,

unless a Qualified Status Change permits change.

Remember: To participate in UT FLEX, you must enroll or

re-enroll during each year’s Annual Enrollment period.

Participants must apply for the Flex Convenience® Card

during annual enrollment or wait until next year!

PayFlex will process UT FLEX reimbursable expenses

(including IRS-eligible over-the-counter items) incurred

during the new plan year, 9/1/04 through 8/31/05.

Claims for eligible expenses incurred through 8-31-04 will be processed by your current administrator, FlexBen, until November 30, 2004 (end of claims run-out period).

UT FLEX Convenience® Card


The Flex Convenience® Card is a signature-based MasterCard “debit card” that accesses your PayFlex spending account.

Use it to pay for IRS-QUALIFIED medical/dental/vision/hearing care expenses-just like minutes from a “pre-paid” phone card!

Use the card until the plan year election amount is used up! You can check your UT FLEX balance frequently, either on line or by calling (866) UTS-FLEX! Transactions in excess of the total election amount or the remaining balance will be rejected by the merchant.

UT FLEX Convenience® Card Advantages:

Convenient & Easy to Use!No claim form to complete!Dollars come out of your UT FLEX account not your pocket!FAST- no waiting for a reimbursement!Provide documentation to PayFlex only when requested by letter!Accepted at qualified merchants for IRS-qualified medical expenses

UT FLEX Convenience® Card Reminders

Save the flex card receipts & documentation for one year. PayFlex may request documentation based on IRS guidelines.

Keep eligible card purchases separate from other purchases made at the same store.

Wal-Mart is currently not accepting any signature-based MasterCards. This includes the Flex Convenience Card.

Do not throw away the card when your account balance reaches $0. The card does not expire for three years, and PayFlex will “reload” it next year with your new election amount.


The UT FLEX Convenience® Card must be requested

by the UT TOUCH System during Annual Enrollment or by Paper Enrollment Form

One card per member and additional cards for dependents available by request at no additional cost. Order online after you receive your card.

The Flex Convenience® Card is for

medical expenses only,

not for day care expenses.

A $9.00 flex card fee will be deducted from your UT FLEX account automatically in September, 2004

No card replacement fees (lost/stolen)

Card is valid for three years

Medical Expense Reimbursement: available account balance

determined by your plan-year election amount

Receipts/documentation needed only when requested

by PayFlex by letter per IRS guidelines.

IMPORTANT: Keep all documentation for your records!


Flex Convenience® Card Mailing

Participants electing the Flex Convenience® Card will receive the card by mail at their home address

The card is mailed in a plain white envelope with PayFlex Systems USA, Inc., Omaha, NE as the return address. Be on the lookout for it!

Cards will be processed as enrollment files are received from EGI. Your card should arrive around 9/1/04

Information, including how to use the card, do’s and don'ts will accompany the card

Fast Claims Processing!

Reimbursement of Paper Claims

Reimbursement of Paper Claims

CLAIMS PROCESSED DAILY! Reimbursements

sent by check or direct deposit within 3 working days!

Fax your claim toll-free or mail or to PayFlex along with claim form, receipts and/or documentation including EOB statements.

PayFlex computer servers receive your paper fax directly-no lost faxes, faster claims processing!

Claims can be submitted at any time for expenses incurred during the plan year, but must be received by PayFlex no later than November 30 following the end of the plan year (August 31).

Customer Service

UT FLEX 24-Hour Info Line: Toll-free (866) 887-3539 (UTS-FLEX) for account balances; claim counselors available M-F 7:00 a.m.-5:00 p.m. Central Time

Website: www.utflex.com has account information, downloadable claim forms, direct deposit forms, eligible expenses, Q and A, and Flex calculators

e-Notify: Sends e-mail to participants on status of paper claims

Quarterly statements

You will receive a year-end post card reminder by U. S. mail on approx. July 1st, 2005 (60 days prior to end of the plan year), if you have a UT FLEX balance greater than $10

www.utflex.com

Account balances, claims submitted

Claims submitted

The “big” list of I RS-eligible Health Care &Dependent Care expenses.

Questions & Answers to help you use UT FLEX

Forms & more. Change of bank, claim f orms, etc.

A useful tool to help determine yourUT FLEX Contribution f or the new Plan Year

Helps determine your Dependent Care Tax Savings

www.utflex.com

SPECIAL IRS PLAN RULES

Once you establish your plan year election, you may only change their election if they experience a “change in family status.”

Any amount left in a UT FLEX account at the end of the plan year will be forfeited. For the fiscal year ending 8/31/05, participants may file plan year claims until November 30, 2005.

You must enroll in UT FLEX during Annual Enrollment every year to participate!

Even if you or an eligible dependents are covered under another health insurance plan, any eligible expenses can still be reimbursed by UT FLEX!

Determine Your UT FLEX Contribution

Only consider expenses that you know you and/or dependents will POSITIVELY, WITHOUT A DOUBT, incur during the plan year

You can’t predict the future: however, many out-of-pocket expenses recur every year

Childcare or adult daycare expenses usually can be determined very accurately

Determine those out-of-pocket expenses that occur every year:

Rx drugs, office visit co-payments, orthodontist visits Contact lenses & cleaners, OTC drugs/medicines Childcare or adult daycare expenses

Determine those out-of-pocket expenses that youare certain you will incur during this plan year:

Major dental work: crowns, bridges, root canals LASIK vision correction surgery Prescription eyeglasses or Prescription sunglasses Hearing aid

Determine Your UT FLEX Contribution

Important Reminders

Review your EXPECTED EXPENSES. Do your homework! Ask your tax advisor, co-workers, friends and relatives.

Only consider the expenses you know absolutely, positively, without-a-doubt you will incur during the plan year!

BE CONSERVATIVE! Remember the “use it or lose it” rule, but don’t let it scare you! Take a close look at this valuable tax break. It could increase your spendable income.

UT FLEX Administrator

PayFlex Systems USA, Inc.P.O. Box 3039

Omaha, Nebraska 68103-3039Phone Toll-Free (866) 887-3539

(866-UTS-FLEX) Fax Toll-Free (877) 230-4283

www.utflex.com

Documents

The University of Texas System Employee Group Insurance 2004 Information Meeting UT FLEX