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| Questions and Answers |
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Q.
How do I enroll in the Section 125 Flexible Benefit Plan?
A. An enrollment form must
be completed reflecting the elections you wish to shelter under
the plan.
Q. How often
may changes be made to my election?
A.
The Plan allows a participant to make elective contribution
changes at each annual enrollment. Changes during the plan year
are subject to the Internal Revenue Code Section 125 regulations
and the Plan Documents. Specifically, allowable changes during
the plan year must be made as a result of a status change. Please
note that election changes must be consistent with the status
change (e.g. the birth of a child would effect dependent benefits
but not dental benefits).
Q.
What events are considered changes in status?
A.
Status changes include marriage, birth, death, divorce, changes
in a spouse or dependent's employment status, or a change from
part-time to full-time status or from full-time to part-time
status by the employee or the spouse. Other status changes include
termination of employment, lay off, unpaid leave of absence,
return from leave of absence, or retirement. In addition, the
significant change in cost or coverage to a participant's health
insurance is an allowable elected deduction change. A participant
may, however, revoke a health premium election only if a new
election is made for coverage under another health plan providing
similar coverage.
Q.
Whose expenses are eligible for reimbursement under the Medical
Expense Reimbursement Fund?
A.
Eligible medical expenses include expenses incurred for the
participant, the participant's spouse or the participant's qualified
dependents that have not been and will not be reimbursed by
any medical insurance, dental insurance or any other source.
This includes expenses that are primarily for the prevention
or alleviation of a physical or mental defect or illness.
Q. What types of expenses
are eligible for reimbursement under the Medical Expenses Reimbursement
Fund?
A. Acupuncture;
Chiropractors; Contact Lenses; Co-payments; Deductibles; Dental
Fees; Doctors Fees; Eyeglasses; Hearing Aids; Health Care Equipment;
Hospitalization; Laboratory Fees; Medical Services; Medical
Supplies; Medicines; Podiatrists; Psychologists; Psychotherapy;
Surgery Expenses; Therapy; Vision Exams; X-Ray Fees.
Q. What are the most common ineligible
medical expenses?
A.
Cosmetic procedures;
Marriage Counseling; Prescriptions used for cosmetic purposes
only, such as Rogaine; Health Club Dues.
Q.
Whose expenses are eligible for reimbursement under the Dependent
Care Assistance Plan?
A.
Qualified dependents include children under age 13 or a spouse
or dependent that is physically or mentally unable to care for
him/herself. The dependent must be someone you claim as a dependent
on your income tax return. The expense must be incurred in order
for that participant (and the spouse if applicable) to work
or look for employment.
Q.
What types of expenses are eligible for reimbursement under
the Dependent Care Assistance Plan?
A.
Care of a qualifying person only if their main purpose is the
person's well being and protection. Care outside your home if
the dependent regularly spends at least eight hours each day
in your home.
Q. What
are the most common ineligible Dependent Care expenses?
A. Overnight Camp, Transportation
Cost,
Entertainment, Schooling.
Q. Is there a maximum amount
that I can contribute to Dependent Care?
A. You may allocate up to
$5,000 per year for reimbursement of dependent care expenses
($2,500 if you are married and file a separate return).
Q. How long does it take to
get a reimbursement?
A. Claims are processed
with in five working days and checks are issued on a daily
basis. A Claim Form is attached for your convenience.
Q. Can I fax claims in for processing
or do I have to mail them in?
A. Claims can be faxed for
processing and there is no need to mail the hard copy.
Q. Who are checks made payable
to and whom are they mailed to?
A. Checks are always made
payable to the participant and are mailed directly to the
participant's home.
Q. What is the "use-it-or-lose-it"
rule?
A. In general, a cafeteria
plan may not allow employees to carry over unused elective
contributions or plan benefits from one plan year to another.
At the end of the plan year, the employee forfeits unused
contributions or benefits. For example, suppose that an employee
elects to allocate $2,000 to a medical expense reimbursement
plan for the plan year and incurs only $1,400 in eligible
expenses during the year. The employee forfeits the unused
$600.00:. it may not be carried over to the next plan year. |
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