UT FLEX Plan Year: 9/1/2009 8/31/2010 Flexible Spending Account
What will be covered? UT FLEX Flexible Spending Account (FSA) Eligible / Ineligible Healthcare Expenses UT FLEX Card (optional) Grace Period Process Dependent Day Care Submitting Claims to PayFlex PayFlex Contact Information 2
What is an UT FLEX FSA? UT FLEX Flexible Spending Accounts (FSAs) Allows you to pay for certain out-of-pocket health care expenses and work-related day care expenses with pre-tax dollars. This means you get a tax deduction for these expenses before you ever file your tax return. You don t pay Federal income or Social Security taxes on this money and, in most states, you don t pay state taxes either. On average you will save about 30% on your total FSA contribution. 3
What type of accounts are available? Medical Expense Reimbursement Account Day Care Expense Reimbursement Account 4
What does this mean to you? Decrease Taxable Income Increase Spendable Income 5
How does an FSA work? You estimate the amount you will spend on out-of-pocket healthcare expenses and/or day care expenses during the year You decide how much you wish to set aside into your Medical Expense Reimbursement Account and Day Care Expense Reimbursement account The amounts you wish to set aside into your account(s) will come out of your paycheck (on a pre-tax basis) in equal amounts each pay period If choose the UT FLEX Card option, you may use your UT FLEX Card for eligible healthcare expenses which automatically deducts money from your Medical Expense Reimbursement Account at the point-of-sale As you incur healthcare and/or dependent day care expenses throughout the year, you may submit a claim for those expenses to get reimbursed with tax-free dollars from your UT FLEX account You may submit your claim online using Express Claims or you can mail/fax a completed paper claim form to PayFlex along with documentation of your expenses 6
How do I get reimbursed? Use the UT FLEX Card for direct, immediate access to your Medical Expense Reimbursement Account; Complete a UT FLEX claim form and send to PayFlex (administrator) via fax or mail; or Use Express Claims at www.utflex.com 7
FSA Savings Example Real world example: Let s say someone in your family wants LASIK eye surgery at and the cost is about $4,500. In most cases, this expense would be paid with post-tax income over the span of a year. However if you put this money into a Healthcare FSA, it will be paid with pre-tax income, and you will save approximately $1,350 in taxes. 8
2009 Plan Year Healthcare Maximum Healthcare Minimum $5000/plan year $15/month 9
Eligible Medical Expenses Medical & dental deductibles, co-pays and co-insurance Prescriptions OTC medicines & supplies Hospital expenses Selected durable medical Orthopedic devices Eye glasses, contact lenses Saline/cleaning solutions LASIK surgery Hearing aids and batteries Orthodontic care Chiropractic expenses/co-pays Insulin, syringes for insulin Bridges, dentures, crowns 10
Eligible OTC Items Certain over-the-counter medicines & supplies are eligible such as: Antacids Anti-fungal ointments Antiseptic ointments Cold & Allergy medicine Throat sprays Lozenges Nasal sprays Cough syrups Cough drops Eye drops Gas relief Hemorrhoid medications Laxatives Motion-sickness pills Pain relievers Arthritis pain Back / Head pain Sleep aids Stop smoking gums/patches Vapor rubs 11
Ineligible Expenses Anti-bacterial soaps Acne treatments Dandruff shampoo Dry skin creams/treatments Foot care products Hair loss treatments Electrolysis hair removal Cosmetic surgery Teeth bleaching Mouthwash Suntan/Sunscreen lotion Dietary supplements Supplements Varicose veins treatment Tattoo removal Herbal supplements Child birth classes *A letter of medical necessity allows some of these expenses to be eligible 12
UT FLEX Card UT FLEX Card is a Debit Card that electronically accesses your healthcare account to pay for IRS- QUALIFIED medical expenses. Note: The UT FLEX Card is optional for all participants. If you already have a UT FLEX Card, you do not need to re-elect the card for the 2010 plan year. 13
Advantages of the UT FLEX Card Increase your personal cash flow Convenient & easy to use FAST- no waiting for reimbursement Provide documentation only as requested Use at qualified healthcare merchants accepting MasterCard Cards are mailed to your home address in a plain-white envelope May elect during initial or annual enrollment 14
IRS changes affecting UT FLEX Card Effective July 1, 2009, your UT FLEX Card could be denied at your local drug store or pharmacy. IRS is requiring all drug stores and pharmacies to implement an inventory information approval system (IIAS) by July 1, in order to continue accepting healthcare cards, such as your UT FLEX Card. How will you know if your card will be denied? DON'T WORRY! Most drug stores and pharmacies have already implemented an IIAS. BIG Y, Costco, CVS, Kmart, Kroger, Safeway, Sam's Club, Target, Wal-Mart, and Walgreens are just a few of the merchants continuing to accept healthcare cards, such as the UT FLEX Card. Go to www.utflex.com to view a listing of merchants accepting the card. What should you do if your card is denied? If your card is denied because a merchant does not have an IIAS, you have two options: OPTION #1: Use another form of payment to purchase your healthcare item. To request reimbursement, submit a claim online via Express Claims or complete a paper claim form and fax or mail to PayFlex. OPTION #2: Purchase from another store. A listing of merchants accepting the card is available via www.utflex.com. 15
Merchants Accepting UT FLEX Card Healthcare-related merchants, such as physician and dentist offices, vision care providers and hospitals. Drug stores and retail pharmacies (Remember, after July 1, the merchant must have an inventory information approval system in place) Non-healthcare related merchants, such as grocery stores, discount stores, wholesale clubs, web-based merchants that use an IRS-approved inventory information approval system. For a complete listing of merchants accepting the UT FLEX Card, go to www.utflex.com! 16
Grace Period Internal Revenue & PayFlex Guidelines: Eligible healthcare expenses must be incurred by the end of the 2 ½ month period (November 15, 2009) Grace Period Process All Grace Period expenses paid out of prior plan year reducing the available balance first After prior plan year balance is exhausted, the remaining claims will be applied toward the current plan year Participants can still use UT FLEX Card for grace period expenses Both plan year balances will be recognized on the card until prior plan year balance is exhausted Grace Period Ends: November 15, 2009 17
2009 Plan Year Dependent Care Maximum* Dependent Care Minimum $5,000/plan year** $15/month *For new hire during plan year, maximum annual contribution is $416/month (for 12-month employee) multiplied by number of months remaining in plan year. **IRS Limit. 18
Dependent Care Expenses Expenses necessary for you and, if married, your spouse to work Child Care or Adult Day Care Expenses Care for children under 13 or incapable of support Care for adult dependent incapable of self care Eligible Expenses Private Sitter Licensed Day Care Provider An 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 Summer camps, except overnight camps Tuition considered a day care expense through preschool 19
Registering Your Account Go to www.utflex.com Click on Login on the left-hand navigation bar Click on Register my account and enter your member number (which may be your Social Security Number or employer ID number) and zip code, and click Submit. Create a unique username and password; select a security question and security answer. Enter your email address. Enroll in e-notify to receive email notifications for when your claim has been processed, an electronic EOB, and/or request for receipt letters via email. Click Submit and you'll be able to access the following information: Account Balance Claim History Transaction History Payroll Deductions And much more! 20
Submitting Claims to PayFlex 21
Express Claims Click here to submit a claim online Go www.utflex.com, login and click on Express Claims to submit your claim online. Enter expense type, date of expense and amount of expense, then click Submit. Confirm all expense details, then click Submit. Select FAX or UPLOAD. You can save time and paper by scanning your receipts and EOBs and uploading online. If you choose to FAX, send web claim coversheet and receipts to 866.932.2567. After uploading your documents, you must check the signature box. Once a claim is processed you will receive an email notification. You can view your claim history via the Accounts link. Use Express Claims, it s quick, easy and convenient! Claims can be submitted 24/7! 22
Filing Paper Claims Complete a claim form and submit to PayFlex via mail or fax Include itemized statement or an Explanation of Benefits (EOB) statement showing your out-of-pocket expense File paper claims as often as you wish Claims can be direct deposited to a checking or savings account Paper claim forms can be located @ www.utflex.com via the Forms link For Dependent Day Care claims, make sure provider s signature is legible 23
FSA Reminders The Use It or Lose It Rule : Carefully consider your prior year's expenses to estimate your medical and day care expenses for the upcoming plan year. Any account balance remaining after the payment of claims will be forfeited. If you use the UT FLEX Card, save your receipts and Explanation of Benefits; periodic audits may require you to verify that you used your card for an eligible expense. At the end of each 12 month plan year, you have an additional 2 ½ months to spend the balance in your Medical Expense Account. In other words, you are given grace period allowing you until November 15, 2009 to use your healthcare dollars. You have until November 30, 2009 to submit claims to PayFlex. 24
Contact Information Claims Address: PayFlex Systems USA, Inc. P.O. Box 3039 Omaha, Nebraska 68103-3039 Toll-free: (866) 887-3539 (UTS-FLEX) Fax: (877) 230-4283 Participant site: www.utflex.com 25
Why should you enroll? Tax savings! Easy-to-use 24/7 Account Access Point-of-sale approval with UT FLEX Card Electronic Claim Submission 7am-7pm (CT) Customer Service Support Save money on your Healthcare & Dependent Day Care Expenses and enroll in a PayFlex Spending Account! 26
Questions? LEARN MORE ABOUT UTFLEX: UT System Office of Employee Benefits at: http://www.utsystem.edu/benefits/utflex 27