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Health Care Reimbursement Plan
What is the health care reimbursement plan?The Health Care Reimbursement Plan assists in funding eligible out of pocket health care expenses. Participants make pre-tax contributions by payroll deduction and the contributions are allocated to an account maintained on the participant's behalf by AURA/NOAO.After paying an eligible out-of-pocket expense, tax-free reimbursement will be processed following submission of claim. The result of paying for health care expenses through the Flexible Spending Account (FSA) Plan may be lower income taxes and, often, an increase in take-home pay. How does the health care reimbursement plan work?After you enroll, the health care reimbursement Plan works like this:
Must I enroll every year to continue participation in the health care reimbursement plan?Yes, an individual must submit a completed enrollment form to Human Resources in order to continue participation in the health care reimbursement plan.How much can I contribute to my health care account?The maximum annual contribution is $3,500.Can I change the contribution amount at a later date?Yes, IRS regulations state that an individual may change or stop his or her FSA contributions only within 31 days from the date of a qualified change in family status, such as marriage, birth/adoption of a child, divorce, death, or if you or your spouse change employment status.Any change must be due and consistent with the reason the change was permitted. With respect to the health care reimbursement plan, you may increase but not decrease your election as the result of the change in family status. topWhat is an eligible change in status?IRS regulations state that an individual may change or stop his or her FSA contributions only within 31 days from the date of a qualified change in family status such as:
When may I enroll in the health care reimbursement plan?Employees must enroll in the health care reimbursement plan within 31 days from the date of employment or during Open Enrollment (usually December).Employees must complete an enrollment form and submit the completed enrollment form to Human Resources in order to participate in the plan. topHow do I file claims?After an individual has paid for an eligible expense, he or she must submit a claim for reimbursement from his or her FSA account. An individual must complete a FSA claim form, available either online or from Human Resources, and submit the completed form along with receipts or other required documentation to Mountain States.Required documentation for reimbursement from the health care account includes a copy of the Explanation of Benefit (EOB) statement from your insurance company, receipts, invoices or other documents indicating provider, patient, amount and the date(s) of service. Dates of service must be within the current plan year and while an individual is making contributions to the plan. When the claim is approved, you will be reimbursed the full amount of your eligible expenses, up to your Healthcare FSA annual election. Claims are processed weekly paid in the following payroll on payday. The deadline for submitting reimbursement claims for the FSA health and dependent care account for the calendar year services in the end of February of the following year. Any monies remaining in the participant's account as of March 1st following the plan year are forfeited in accordance with IRS regulation. topHow is reimbursement payment made?When the claim is approved, you will be reimbursed the full amount of your eligible expenses, up to your Healthcare FSA annual election. Claims are processed weekly and paid thorugh normal payroll on payday.What is the deadline for submitting claims?Claims submitted for processing will be paid through the regular payroll.The deadline for submitting reimbursement claims for the FSA Plan for the 2007 calendar year services is the end of February 2008. Any monies remaining in a participant's account as of March 1, 2008 are forfeited in accordance with IRS Regulations. topWhich expenses are eligible?Examples of covered expenses are: (PDF list of qualifying expenses)
Health care expenses must meet the statutory requirements of IRC sections 21 and 129. For more information, refer to IRS Publication 502 Medical and Dental Expenses or consult your tax adviser. What happens to health care funds I don't use?All eligible funds must be for services provided during the period contributions are made and must be claimed by the end of February.Under IRS regulations, any monies not claimed from the Health Care Account as of March 1st are forfeited. Any forfeited funds are used by AURA/NOAO to pay the cost of administering the health care reimbursement plan. Therefore, careful planning of projected dependent care expenses is essential.
What if I separate from employment?If you separate your employment, you may submit claims only for eligible expenses incurred through the last day of employment. Expenses incurred after this date are not eligible for reimbursement. An individual may continue to submit claims for reimbursement for eligible expenses through February.You may be eligible to continue your coverage under COBRA provided you continue to make after-tax contributions to the plan. topWhat is the plans Privacy Policy ?You can find a PDF copy of the policy at HIPPA Privacy Policy.What type of documentation should I submit with my claim ?The documentation submitted with a claim should include the following (which are the same requirements for the IRS in documenting qualified health care expenses for your taxes):
Submitting the proper documentation will help ensure that your claim processing is not delayed. Who do I contact if I have additional questions?
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