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| Health
Care Reimbursement Plan Frequently Asked Questions |
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Here
are the most commonly asked questions regarding the
Health
Care Reimbursement Plan: |
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What
is a Health Care Reimbursement Plan (HCRP)?
Through
payroll deduction you can set aside money on a pre-tax basis
to reimburse yourself for non-insured medical, dental, and
vision expenses, such as your deductible and co-payment
amounts under your insurance plan and any other non-insured medical expenses
that can be itemized (with the exception of insurance
premiums).
Each time
you have a medical expense, simply submit the claim to your
insurance company as usual. When the insurance company
processes the claim, an Explanation of Benefits (EOB) will
be returned to you. Send to Flex Corp a copy of the EOB
along with a completed request for reimbursement form. Flex
Corp will process the receipts and a reimbursement check
will be sent to your home.
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May I use the
Health Care Reimbursement Plan for expenses of my non-insured
dependents?
Yes.
Your dependents do not have to be covered under the
company's medical, dental or vision plans to participate in
the Health Care Reimbursement Plan for eligible medical,
dental, or vision expenses.
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Is there a
minimum or maximum I may contribute?
You
may contribute as little as you feel is necessary to cover
your non-insured medical, dental, and vision expenses, but no
more than your specific plan permits.
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Aside from
insurance deductibles and co-payment amounts, what other
types of expenses are reimbursable?
Generally
speaking, any medical expenses which can be itemized as such
for income tax purposes can be reimbursed under the HCRP.
This could include such things as hearing aids and their
batteries, saline solutions for contact lenses, travel
expenses for specific medical conditions, prescription drug
co-payments, insulin, orthodontic expenses (whether for a
child or adult), etc. You can also be reimbursed for
certain over-the-counter (OTC) drugs
and medicines.
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Are there
any examples of medical expenses which are not reimbursable?
Yes.
Most common are cosmetic surgery or cosmetic procedures.
Examples of possible cosmetic procedures are teeth whitening
and facelifts. Your physician will make the determination as
to whether or not a procedure is cosmetic in nature. Some
other examples are PPO discount amounts, any amount you are
not obligated to pay, or amounts which have already been
reimbursed to you from another source.
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If I use
the HCRP, can I still itemize medical expenses on my tax
return?
Yes,
but not on the same expenditures. For example, if you
elect an annual benefit of $100, and later incur $2,000 in
medical expenses (insurance pays nothing) and are reimbursed
your annual election of $100 from the HCRP, only the
remaining $1,900 can be used as expenses that can be
itemized for
income tax purposes.
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How are
orthodontic expenses handled?
Generally,
when a patient needs braces the orthodontist will present
you with a bill for the total amount due for services, which
will span two or three plan years. However, most often he
will allow you to sign a contract and make monthly
installments for the services. For example, while the
services may total $3,600, he may allow you to make an
initial down payment of $500 and make monthly payments of
$100 for the remaining thirty-one (31) months. To have these
expenses reimbursed through your HCRP, you will need to
determine what your payments will be in each of the affected
plan years, and set that amount aside each year in your HCRP.
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What
happens to my money if I quit before I use it all?
You
can be reimbursed for any eligible expenses you incur prior
to your date of termination. Expenses incurred on or after
your termination date are not payable, and unused dollars in
the HCRP will be forfeited to the employer.
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What
happens if I don't use all of my money?
Unused
dollars are forfeited to the employer. They cannot be
carried forward to a new Plan Year; they cannot be
transferred to another account (i.e. HCRP dollars cannot be
transferred to DCRP); and they cannot be returned to the
employee as taxable income. You should be conservative in
your estimates.
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What
happens if I have an eligible expense, but not enough money
in my account to cover it?
When
you sign up for the HCRP, you are electing an "annual
benefit". The full annual benefit is available to you
throughout the period of coverage (e.g. through the end of
the Plan Year or until your date of termination) regardless
of your actual contributed amount (to date).
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What
happens if my employment is terminated and I haven't
incurred the expense for which I set aside the money?
In
most situations you may elect to continue participating in
the HCRP through end of the current plan year and continue
paying your contributions on an after-tax basis by remitting
them directly to the employer. Your HCRP coverage will
remain in effect as though you were still employed, as long
as your contributions are made in a timely manner.
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