Board Meeting

Report
Lincoln Public Schools
Plan Year:
October 1, 2009 through August 31, 2010
(2009-2010)
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© 2007 PAYFLEX SYSTEMS USA, INC.
What is an FSA?
Flexible Spending Accounts (FSAs)
Allows you to pay for certain out-of-pocket health 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.
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What does this mean to you?
Tax Savings!
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Decrease Taxable Income
Increase Spendable Income
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FSA Savings - Example
Real world example:
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Let’s say someone in your family needs braces at an average
cost of $4,500. This is typically paid over the course of one or
two years. If you put this money into a Health Care Flexible
Savings Account you will save approximately $1,350 in taxes.
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Eligible FSA Expenses
 Medical & dental deductibles,
co-pays and co-insurance
 Prescriptions
 Over-the-counter medicines
& supplies
 Hospital expenses
 Selected durable medical
 Orthopedic devices
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© 2007 PAYFLEX SYSTEMS USA, INC.
Eligible FSA Expenses
 Eye Glasses, contact lenses
 Saline/cleaning solutions
 LASIK surgery
 Hearing aids and batteries
 Orthodontic care
 Chiropractic expenses/
co-pays
 Insulin, syringes for insulin
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Eligible OTC Medications
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Antacids
Anti-fungal ointments
Antiseptic ointments
Cold & Allergy
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
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Ineligible Healthcare Expenses
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Anti-Bacterial Soaps
Acne Treatments
Dandruff Shampoo
Dry Skin Creams/Treatments
Foot Care Products
Hair Loss Treatments
Electrolysis – hair removal
Cosmetic surgery
Teeth Bleaching
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Mouthwash
Suntan /Sunscreen Lotion
Dietary Supplements
Supplements
Varicose veins treatment
Tattoo removal
Herbal supplements
Child birth classes
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© 2007 PAYFLEX SYSTEMS USA, INC.
Calculating Your Contribution
 Determine out-of-pocket expenses that recur every year for you
and all of your dependents.
 Prescriptions, over-the-counter medicines, etc.
 Braces
 Routine doctor visits – co-pays/non covered visits
 Estimate out-of-pocket expenses that you plan to incur during the
plan year (e.g., laser surgery, extra glasses, acupuncture)
 Use our expense planning worksheets to assist you in determining
your annual contribution (available at www.payflex.com)
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Special IRS Plan Rules
 Once you establish your plan year contribution, you may only
change it if you experience a “life event” change.
 Qualifying events include: marriage, divorce, and death
 Any amount left in your flexible spending account at the end of
the plan year will be forfeited.
 Even if you or another family member are covered under
another health insurance plan, you can still participate in the
PayFlex FSA plan.
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FSA Educational Tools
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Comprehensive participant website
Online FSA expense planning
calculator and worksheets
Frequently Asked Questions
Eligible FSA expenses
Express Claims
Web-based FSA tutorial
Printable enrollment and claim forms
www.payflex.com
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© 2007 PAYFLEX SYSTEMS USA, INC.
www.mypayflex.com
Login: New user registration & login screen
Accounts: Account Summary with balances, claims history and payroll transactions
Debit Cards: List of debit cards active in your account
My Info: Username, password, security question & answer, email address and option for
electing e-Notify to receive emails for processed claims
Express Claims: To submit your claims during the plan year, print claims and
instructions to fax claims. Express Claims promises 72 hour turnaround time for claims
processing
Education Tools: FSA Tutorial, FAQ’s to help you use PayFlex services, savings
calculator, and expense planning worksheets
FSA Calculator: Directs you to a site to calculate your medical care, prescriptions,
dental care, eye care, and over-the-counter drugs as well as your potential savings
Eligible/Ineligible Expense Items: A comprehensive list of IRS-eligible Health Care &
Dependent Care expenses
Forms: Administrative forms and publications and IRS forms and publications including
direct deposit forms and claim forms
FAQs: Includes general questions as well as questions regarding filing claims, changing
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your election, health care, dependent care, flex debit card and grace period.
© 2007 PAYFLEX SYSTEMS USA, INC.
FSA Education Tools
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Online FSA tutorial
Expense planning tools
Enrollment & claim forms
www.mypayflex.com
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© 2007 PAYFLEX SYSTEMS USA, INC.
Frequently Asked Questions
How does an FSA account work?
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You estimate the amount you will spend on out-of-pocket health care expenses
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You decide how much you wish to set aside into your FSA Health Care
account
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The amounts you wish to set aside into your accounts will come out of your
paycheck (on a pretax basis) in equal amounts each pay period
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As you incur health care expenses throughout the year, you can submit a
claim form along with documentation of your expenses OR file your claims
online using our Express Claims
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You will be reimbursed via check or direct deposit
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© 2007 PAYFLEX SYSTEMS USA, INC.
Frequently Asked Questions
How much can I put into my FSA Account?
 Health Care account- $4000 for LPS
 Dependent Care account- $5,000 maximum per plan year
per the IRS
How often can I enroll?
 Annually – new employees can join off cycle
How much can I expect to save with and FSA?
 This depends on your tax bracket but on average about
30% of your total contribution/election.
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© 2007 PAYFLEX SYSTEMS USA, INC.
Frequently Asked Questions
Do I have to save and turn in my receipt?
 Yes. You can file your claims via fax, mail or online
through our Express Claims service. Express Claims
makes it easy to submit your claim and in most cases
your claims are processed within 1 to 2 days.
If I don’t use the money in my account do I lose it?
 Yes. You must spend all the money in your account by the
end of the benefit year.
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Dependent Care
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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
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© 2007 PAYFLEX SYSTEMS USA, INC.
Qualifying Child Care Providers
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Private Sitter
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Licensed Day Care Provider
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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
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Summer camps, except overnight camps
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Tuition considered a day care expense through
preschool
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© 2007 PAYFLEX SYSTEMS USA, INC.
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
(Remember, claims incurred during your
plan year must be filed by March 31,
2008)
 Claims can be direct deposited to a
checking or savings account
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© 2007 PAYFLEX SYSTEMS USA, INC.
Express Claims: filing claims online
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Go to www.mypayflex.com
Login with your Username & Password, if first time user, please
register for an account
Once you are logged in, the Accounts screen will appear, then select
Express Claims on the right side
Select the account through which you wish to file a claim
Enter your claim information: date of expense, type of expense and
the amount of expense and click the Next button
Verify your claim and print your claim
Fax claim and itemized receipts to (866) WEB-CLMS
Note: Itemized receipts must include date of purchase, descriptions of
purchase, amount of purchase, name of merchant and if a health care
claim we will also need the name of the patient.
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Communication Services
 e-Notify - provide us with your e-mail
address and you will receive an
electronic receipt for paper claims that
you submit, letting you know we have
processed it. Sign up for e-Notify at
www.payflex.com!
 Year-end notification- reminder to use
your remaining account balance before
the end of the plan year.
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© 2007 PAYFLEX SYSTEMS USA, INC.
PayFlex Contact Information
Please contact us with any questions!
PayFlex Systems USA, Inc.
700 Blackstone Centre
Omaha, NE 68131
Toll-free: (800) 284-4885
Website: www.payflex.com
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© 2007 PAYFLEX SYSTEMS USA, INC.
Thank You
www.payflex.com
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© 2007 PAYFLEX SYSTEMS USA, INC.

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