Harlingen CISD Cafeteria Plan Open Enrollment Harlingen, Tx

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Harlingen CISDCafeteria Plan Open
EnrollmentHarlingen, Tx
LifeRe
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What is aCafeteria Plan?

• Employee Benefit Plan sponsored by HCISD
• Authorized by Section 125 Internal Revenue Code
  (IRC)
• Allows payment of group health, dental and vision
  premiums, eligible adult child dependent care
  expenses, and eligible unreimbursed medical
  expenses,
• all with before tax dollars!

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Special IRSRules Apply

• All dollars contributed to reimbursement accounts
  must be spent before Plan Year 90-day Grace
  Period ends or those dollars will be forfeited
• You cannot change benefit selections or
  contributions into reimbursement accounts during
  the Plan Year unless due to legal change in
  status

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Change inStatus Rules

• You are allowed to alter benefits or
  contributions if you have a change in legal
  status, such as
• Marriage
• Divorce
• Birth or adoption
• Death in family
• Termination of employment
• A spouses open enrollment

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Medical ReimbursementAccount

• Examples of Out-of-Pocket Expenses include . . .
• Deductibles, Co-insurance
• Office Visit Co-pays, Lab Fees
• Prescription Meds Co-pays
• Eligible Over-the-Counter Meds
• Eyeglasses, Contact Lenses, Lasik Surgery
• Medical Equipment, Hearing Aids, Diabetic
  Supplies
• Chiropractic Services, Acupuncture
• Ambulance Services
• Orthodontic Treatment
• Special Rules Apply

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Medical Reimbursement Account

• All dollars must be spent during the Plan Year or
  those dollars will be forfeited
• Certain cosmetic surgical procedures are not
  reimbursable
• Certain over the counter drugs or items available
  without a prescription may be reimbursable
  subject to medical necessity
• Certain rules apply to reimbursement for
  orthodontic treatment

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Child Dependent Care Reimbursement Account

• Eligible Expenses include . . .
• Child or Adult Day Care
• Nursery Services
• Before and After School Care
• You may pay for these expenses with pre-tax
  dollars
• through payroll deduction!
• Special Rules Apply

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Child Dependent Care Reimbursement Account

• A Few of the Special Rules.
• Only those dollars actually in your account will
  be reimbursed
• All dollars must be spent during the Plan Year or
  those dollars will be forfeited
• Dependent care expense must be work related
• You your spouse must be employed or full time
  student
• Child must be under Age of 13
• You cannot change contribution during Plan Year
  unless due to legal status change
• You cannot take Child Care Tax Credit on 1040
  I.R.S. Form

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How Much ShouldI Withhold for the Medical
Reimbursement Account?

• Calculate insurance co-payments, deductibles
  coinsurance amounts (major medical, dental,
  vision, etc.)
• Calculate the annual cost of prescriptions
  eligible over-the-counter medications including
  any co-payment amounts
• Calculate the annual cost of other eligible
  medical services, equipment supplies
• Total these estimated costs and divide the amount
  by the number of pay checks per year you receive
• Example 800 / 26 30.77
• This would be your payroll deduction per paycheck
  for your medical reimbursement account.

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How Much Should I Withhold for Child Dependent
Care Reimbursement Account

• Calculate the annual amount you spend for adult
  or child dependent care
• Total these estimated costs and divide the amount
  by the number of pay checks per year you receive
• Example 800 / 26 30.77
• This would be your payroll deduction per paycheck
  for your child dependent care reimbursement
  account.

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How Doesthis Work?

• Pay for medical and/or dependent care services
• Obtain a detailed receipt for the services,
  products, or equipment you have purchased
• Complete the Fast Claim Form and Mail or Fax to
• LifeRe Insurance Company
• P.O. Box 786010
• San Antonio, TX 78278-6010
• Fax Number [phone]
• Fast Claim Form available from Forms Library at
  www.lifere.net
• With proper proof of claim, reimbursement takes 3
  5 business days from LifeRes receipt of claim

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A Wordabout Receipts

• What Works (Acceptable Receipts)
• Insurance Company EOBs (Explanation of Benefits)
• Dental, Medical or Vision Itemized Receipt of
  payment (Must show date of service, service
  performed diagnostic or service code if
  appropriate and amount paid)
• Prescription Receipts
• Itemized Receipts naming any Over-the-Counter
  Medications
• What Does Not Work (Unacceptable
  Receipts)
• Cancelled Checks
• Balance Forward Statements
• Visa/Mastercard Receipts

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ImportantReminders

• Premiums are automatically deducted from each
  paycheck
• Contributions to reimbursement accounts are
  automatically deducted from each paycheck
• You can make changes to your benefit selections
  only once a year during open enrollment unless
  the change is due to a legal status change
• Use it or Lose it! ---------
• Reimbursement Dollars Forfeited at Plan Year End
  if not used

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• Insert Enrollment Form

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• Insert Group Dental Info

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• Insert Group Vision Info

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Thanks!