Welcome to Chapter 3B – Flexible Spending Accounts As a reminder, please remember: All Chapters...

•Welcome to Chapter 3B – Flexible Spending Accounts

•As a reminder, please remember:• All Chapters provided in the 2015 Benefits Guide are intended to be part of a module series

•There are eight Chapters, several of which contain sub-chapters

• Follow along with and compile these into your own presentation (see below) in the order they are presented

• Text items in red are variables. Please modify them as necessary in order to fit your presentation’s and consumers’ needs

• Please pick and choose from the slides provided to create a custom presentation that is right for you and your consumers. To do this, refer to the instructions listed on the end slide of each Chapter

1Proprietary Information of UnitedHealth Group. Do not distribute or reproduce without express permission of UnitedHealth Group.


Flexible Spending Accounts (FSA)

Looking for ways to lower the cost of your health insurance?

An FSA is designed to help you:

•Pay for care and services that

may not be covered by other

benefits

•Save money by paying less in

taxes


WHAT IS A FLEXIBLE SPENDING ACCOUNT?

Through your employer, you choose to set aside money, tax-free, to pay for medical or dependent care expenses.•You decide how much of your wages you want taken out of your paycheck and put into an FSA.

•You don’t have to pay taxes on this money.

•The federal government and your employer can limit the amount you can put in.

•There is no carry-over of FSA funds. What you don’t spend, you will lose.

Proprietary Information of UnitedHealth Group. Do not distribute or reproduce without express permission of UnitedHealth Group.

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FLEXIBLE SPENDING ACCOUNTS

There are different types of FSAs.

•Health Care FSA lets you set aside money from your paycheck, before it is taxed, to pay for eligible health care expenses.

•Dependent Care FSA lets you save even more by setting aside money to pay for eligible dependent care expenses.

•Limited Purpose FSA lets you set aside money to pay for eligible dental and vision expenses only.


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FLEXIBLE SPENDING ACCOUNTS

HOW THE PLAN WORKSEstimate your expenses for the year. Decide how much money you want to set aside in your FSA.

Enroll when you enroll in your benefits. You must re-enroll each year.

Money will be set aside into your flexible spending account from each paycheck after the plan year starts. You pay no taxes on that amount.

As you pay for eligible expenses, you reimburse yourself from your flexible spending account.

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“USE IT OR LOSE IT” RULE

Flexible Spending Accounts are intended for use within the elected year. •You have until [DATE] to receive services or purchase eligible expenses for reimbursement from your FSA

OR

•You have a grace period of two and a half months to purchase eligible expenses for reimbursement from your FSA. Expenses must be incurred by [DATE]

OR

•You can roll over up to $XXX of your FSA funds to purchase eligible expenses for reimbursement from your FSA in 2016.


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*OTC medicines and drugs require a valid prescription.

Keep your receipts!

HEALTH CARE FSA

You can set aside $X,XXX for eligible medical, dental and vision expenses in 2015

•Doctor’s office visit costs and procedures, including co-payment, co-insurance and deductible costs

•Eyeglasses, contact lenses and supplies and vision exams

•Dental treatments, including X-rays, cleanings, fillings and orthodontic treatment

•Covered prescriptions

•Over-the-counter (OTC) supplies and equipment, such as insulin*


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Keep your receipts!

DEPENDENT CARE FSA

You can set aside $X,XXX for eligible childcare and elder care expenses in 2015•Before and after school programs, including extended care programs

•Babysitter (work-related, in your home or someone else’s home)

•Child care, nanny or Au Pair

•Nursery school, pre-school

•Adult day care

•Elder care (when you work and in your home)

•Travel costs to and from eligible care if provided by your care provider


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Keep your receipts!

You can set aside $X,XXX for eligible dental and vision expenses in 2015•Must be enrolled in a high-deductible health plan or HSA-eligible plan

•Can only be used for eligible dental and vision expenses

LIMITED PURPOSE FSA


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Employee enrolls in a health care FSA and sets aside $2,000 to pay for doctor’s visits and prescriptions.

Example is hypothetical and for illustrative purposes only. Consult a qualified legal, tax or financial advisor for your specific situation.

Employee savings

Federal income tax(28% tax bracket) $560

State income tax (5%) $100

FICA tax (7.65%) $153

Total tax savings for the year $813

FSA SAVINGS EXAMPLE


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Keep your receipts!

MORE REASONS TO ENROLL IN AN FSA

• All health care FSA dollars available the first day o Dependent care FSAs work differently. You can

only use as money becomes available in the account.

• Health care FSA can help pay for hundreds of expenses.o Some may surprise you such as laser eye surgery,

stop-smoking programs and acupuncture.

• Claims can be paid automatically.

• Use our online claim submission form to easily submit claims and use myClaims Manager to easily manage claims and pay bills.

• You can get your money faster with direct deposit.


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HEALTH CARE SPENDING CARD

Your FSA will come with the Health Care Spending Card Debit MasterCard® to make paying easy•No reimbursement forms to submit

•Most grocery stores and pharmacies can identify eligible expenses on receipts


PRESENTER’S NOTE RECOMMENDED SLIDES

Many groups with Flexible Spending Accounts would also benefit from slides on:

•myHealthcare Cost Estimator

•myClaims Manager

•Personalized Messages

•UnitedHealthcare Health4Me™ Mobile App

•Health Care Lane®

• This ends Chapter 3B – Flexible Spending Accounts

• Please open Chapter 3C – Pharmacy Coverage

• Copy and Paste slides from Chapter 3C to this Power Point (Chapter 1)

1. Click on the first slide and then press shift while you click on the last slide

2. Right click on the first slide and select copy

3. Go to the first section

4. Click below the thumbnail of the last slide in that section

5. Right click there and select Copy—Use Source Formatting

• Whichever slides from Chapter 3C that do not apply to your customer, delete


Welcome to Chapter 3B – Flexible Spending Accounts As a reminder, please remember: All Chapters...

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