Healthcare Spending Accounts

1. Healthcare Spending Accounts Use it or lose it! 1

2. What is a Healthcare Spending Account? Per the IRS, guidelines are: • Pre-tax savings account to pay for medical expenses (pre-federal, state, SS & Medicare taxes) • Date of service determines which year’s account will be charged • Strict list of items eligible for reimbursement • Use it or Lose it!

3. How much may I contribute? CMH allows: • Between $100 and $5000 • Withholding is based on # of paychecks remaining in the year (24 max) • You may start, stop or change only • At hire • During Open Enrollment • If you have a Qualifying Event

4. What expenses qualify for an HCSA? Established by the IRS Laboratory fees Laser eye surgery Massage therapy (within limits) Medical services by a licenses provider Mileage ($.19/mile in 2011) Nursing home charges Operations Optometry Optical care Organ transplants Orthodontics Osteopathic treatment Oxygen Physical exams Prescription drug co-pays Prescription vitamins (treating a deficiency) Prosthesis Psychiatric care Radial Keratotomy Sterilizations Xrays • Acupuncture • Alcoholism treatment program • Ambulance • Artificial limbs • Artificial teeth • Birth control pills • Braille books/magazines (extra cost) • Car modification for disability • Childbirth classes (mother) • Chiropractic care • Christian Science practitioners • Co-insurance charges • Contact lenses/supplies • Crutches • Deductibles and co-pays • Dental treatment • Eyeglasses • Hearing aids and batteries • Hospital Fees

5. Are there some over-the-counter items that qualify? Yes, but only with a prescription by your doctor as being medically necessary • Allergy Medicine • Antacids • Anti-diarrhea medicine • Bandages • Cold medicine • Cold/hot packs for injuries • Condoms • Cough drops • Eye drops • First aid kits • Gauze pads • Hemorrhoid medications • Incontinence supplies • Laxatives • Motion-sickness medications • Nasal spray • Nicotine gum or patches • Ointments for muscle pain • Ointments for first aid • Pain relief medications • Pre-natal vitamins • Pregnancy test kits • Reading glasses • Rubbing alcohol • Sinus Medicine • Suppositories • Thermometer

6. How do I get money from the account? You have three primary ways to collect money from the Healthcare Spending Account: • Benny card • Automatic reimbursement • Submit by mail or fax The next three slides will explain each

7. How does a Benny Card work? A Benny Card has these features: • Looks like a credit card • Works like a debit card (declining balance) • Your full annual balance is loaded onto the card • Rather than paying a co-pay ($20, $40, $50, etc), you can have that payment come straight out of your Spending Account via the Benny Card • Save all healthcare receipts (even when using the Benny Card)

8. How does Automatic Reimbursement work? • You must use UMR for your medical and/or dental ins. for Automatic Reimbursement to work • At the time of generating a co-pay (doctor’s office, pharmacy, emergency department), you would make your payment to them at that time • When UMR processes the claim, they will electronically notify the Healthcare Spending Account department to issue you a check to refund you for each co-pay

9. How do I submit Healthcare Spending Account expenses for reimbursement? • Shoebox method: Referring to the practice of “saving” all eligible receipts during the year and submitting for reimbursement. • You may submit for reimbursement once a year or as often as you wish. • Claim forms are in the Forms & Documents tab of www.cmmfhealthydecisions.com

10. What dates affect my reimbursements? • You have until next March 31st to submit this year’s receipts • The date of service, date of treatment and date of purchase will determine which year to claim is applied to. For example, paying for eyeglasses on December 31st will count as current year while paying on January 2nd for eyeglasses will count toward the “new” year. • Do NOT use the Benny Card in January for the previous year’s claims