Medical Reimbursement Flexible Spending Accounts
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Transcript of Medical Reimbursement Flexible Spending Accounts
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Medical Reimbursement
Flexible Spending Accounts
Give Yourself a Raise!
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Do you have medical, dental and vision expenses you pay out of
pocket?
• Health Insurance Deductibles• Health Insurance Co-insurance• Prescription Drugs• Dental work, for example fillings or crowns• Orthodontia (braces)• Contacts, Glasses, Frames• Other items of medical purpose, excluding over
the counter medications
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If you have eligible expenses
1. Come up with an amount that you and your family will spend on eligible expenses for the plan year (for example, $1000)
2. Complete an application for medical reimbursement and make your annual election (in this case, $1000).
3. The $1000 election is divided by your number of payrolls, and an even amount comes from each paycheck.
4. Prior to the start of the plan year, you will receive a Debit Card from Nyhart.
5. During the plan year, use the Debit Card for eligible expenses until your annual election ($1000) is expired.
6. After spending the election ($1000), begin paying out of pocket as you traditionally would
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Notable Facts
• Keep your receipts! You may occasionally be asked to provide a copy• Use it or lose it – so be sure to incur all your Medical Reimbursement
Flexible Spending Account money during the plan year, because you lose any money that you do not spend.
• 90 day grace – if you incur bills during the plan year you may claim the expenses up to 90 days after the end of the plan year
• You must be eligible for the district’s medical plan to participate, but you may participate in medical reimbursement even if you do not take the district’s medical insurance plan
• The plan year begins September 1 each year and lasts through August 31 the following year.
• A short plan year is established of March 1 – August 31, 2013 for this enrollment period
• Have a HDHP with a HSA? - If you participate in a flexible spending account, no member of your family can contribute to a health savings account
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How does Medical Reimbursement save me money?
• Each pay period when the payroll deduction is taken from your paycheck, the deduction reduces your taxable income
• Federal, State, Local, and other Payroll taxes are eliminated due to your reduction in taxable income
• As a result, you spend money on eligible items you would have purchased anyways through your medical reimbursement account, however, you have reduced the amount of taxes you pay
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Can you show me an example?
• Each pay period when the payroll deduction is taken from your paycheck, the deduction reduces your taxable income
Sample Item Annual Cost Tax Savings Sample Savings
Ms. Smith Prescriptions 240.00$ 28% 67.20$ Mr. Smith Prescriptions 240.00$ 28% 67.20$ Junior Smith's Glasses 90.00$ 28% 25.20$ Junior Smith's Braces 1,000.00$ 28% 280.00$ Chiropractor 200.00$ 28% 56.00$ Mr. Smith Dental Work 500.00$ 28% 140.00$ Ms. Smith Contact Lenses 150.00$ 28% 42.00$ Miscellaneous 80.00$ 28% 22.40$
Totals 2,500.00$ 28% 700.00$
Impact of Benefit - Flexible Spending Account
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Medical Reimbursement is right for me if:
• You are eligible for the Zionsville Community Schools medical insurance
• You do not participate in a health savings account through your spouse’s employer
• You have out-of-pocket eligible medical, dental or vision expenses for which you have not already earmarked funds via a spouse’s employer
• Paying less taxes interests you