Lincoln Public Schools Plan Year: September 1, 2012 through August 31, 2013 1 © 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. 2 © 2007 PAYFLEX SYSTEMS USA, INC. What does this mean to you? Tax Savings! Decrease Taxable Income Increase Spendable Income 3 © 2007 PAYFLEX SYSTEMS USA, INC. FSA Savings - Example Real world example: 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. 4 © 2007 PAYFLEX SYSTEMS USA, INC. Eligible FSA Expenses Medical & dental deductibles, co-pays and co-insurance Prescriptions Hospital expenses Selected durable medical Orthopedic devices 5 © 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 6 © 2007 PAYFLEX SYSTEMS USA, INC. Ineligible Healthcare Expenses Over-the-Counter medication (certain OTC are eligible – refer to plan for more details) 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 © 2007 PAYFLEX SYSTEMS USA, INC. 7 Calculating Your Contribution Determine out-of-pocket expenses that recur every year for you and all of your dependents. Prescriptions, co-pays, 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.HealthHub.com) 8 © 2007 PAYFLEX SYSTEMS USA, INC. 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. 9 © 2007 PAYFLEX SYSTEMS USA, INC. FSA Educational Tools 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.HealthHub.com 10 © 2007 PAYFLEX SYSTEMS USA, INC. FSA Education Tools Online FSA tutorial Expense planning tools Enrollment & claim forms www.HealthHub.com 11 © 2007 PAYFLEX SYSTEMS USA, INC. Frequently Asked Questions How does an FSA account work? You estimate the amount you will spend on out-of-pocket health care expenses You decide how much you wish to set aside into your FSA Health Care account 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 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 You will be reimbursed via check or direct deposit 12 © 2007 PAYFLEX SYSTEMS USA, INC. Frequently Asked Questions How much can I put into my FSA Account? Health Care account- $4000 for LPS this decreases to $2500 for the 2013-2014 plan year 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. 13 © 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. 14 © 2007 PAYFLEX SYSTEMS USA, INC. Dependent Care 15 © 2007 PAYFLEX SYSTEMS USA, INC. 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 16 © 2007 PAYFLEX SYSTEMS USA, INC. Qualifying Child Care Providers 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 17 © 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 Claims can be direct deposited to a checking or savings account 18 © 2007 PAYFLEX SYSTEMS USA, INC. PayFlex Contact Information Please contact us with any questions! PayFlex Systems USA, Inc. Toll-free: (800) 284-4885 Website: www.HealthHub.com 19 © 2007 PAYFLEX SYSTEMS USA, INC. Thank You www.payflex.com 20 © 2007 PAYFLEX SYSTEMS USA, INC.