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Who do I call for questions about enrollment, the Annual Election Form, or the Enrollment Worksheet?
For any inquiries about this Plan, or you account, simply call BSI Administrative Services at (973) 300-4274 (4BSI) or FAX 973-300-9329 (9FAX) or E-mail."
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When is the Plan Year?
The Plan Year starts July 1, 2009 and ends the June 30, 2010. Furthermore, there is a "grace period" allowing claims from July 1, 2010 until September 15, 2010 to be used to claim balances for this Plan Year. Please remember, you pay first, but the date of service is the key, not the date paid.
In addition, there is an extended processing period until September 30, 2010 to submit the necessary paperwork. Anyone needing additional time after September 30th must submit a written request (or E-mail) on or before September 30th asking for more time.
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Can I participate in the Flex Plan even if I am not in the group health insurance plan?
Yes, for all accounts except for the Healthcare Premiums account. The Unreimbursed Healthcare account works with any and all health insurance plans.
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Who is eligible to participate?
Eligibility is dependent on your specific company plan design. Refer to the Key Rules to see how may hours you must work to be eligible and whether or not there is a waiting period (which is usually designed to be consistent with your eligibility for the group healthcare insurance).
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Can I join now or must I wait?
You have one opportunity to join at the time you become eligible. If you choose not to join at that time you must wait until the start of the next Plan Year, unless there is an allowed change of election event.
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Since pre-tax dollars reduce FICA (Social Security taxes), won't my Social Security payments be affected?
Yes if your gross income less the annual elections is $106,800 or less in 2008 (thus reducing your 7.65% FICA and Medicare contributions). If over $106,800, your 1.45% Medicare contributions will be lower. Since you will be paying less FICA and Medicare today, the government provided benefits may be slightly lower when you retire. For most employees, the impact is not very significant. (If you are still concerned about funding your retirement, then please inquire about other available options as ways to save for retirement.)
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Does setting aside moneys in the Flex Plan affect any other benefits?
No, the Flex Plan supplements other company provided employee benefits. No other company provided benefits are affected.
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How do I get started?
You will be enrolled in the Healthcare Premiums account when you decide upon your group health plan coverage. For all the other optional accounts, first decide on how much you and your family expect to spend for the Plan Year. An enrollment worksheet is available to help you with the Unreimbursed Healthcare and Child/Dependent Care accounts; then complete the Annual Election Form (Form PR2 and Form PR2b).
Submit all election forms to your Human Resources contact so that they may setup the first payroll deductions. Your company will provide BSI Administrative Services with a copy so we can prepare confirmation letters and update our records.
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Do I have to sign up each year?
Yes, for the Unreimbursed Healthcare Expenses and Child/Dependent Care accounts you must make new elections before the beginning of each new Plan Year using the Annual Election Form (Form PR2 and Form PR2b). Otherwise, amounts being deducted will be reset to zero with the first payroll of the new Plan Year.
For the Healthcare Premiums account you do not have to enroll again unless your company requests annual elections for payroll process. Otherwise, the current payroll deductions will automatically be continued from year to year.
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If I miss this enrollment when can I enroll again?
Once eligible, if you decline to participate or do not submit an election form, then you must wait until the open enrollment period for the next Plan Year unless there is an allowed “change of election.”
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If I was not eligible as of the start of the Plan Year, when can I start?
Anyone becoming eligible during a Plan Year may enroll for Healthcare Premiums and Child/Dependent Care when deciding on the group insurance plan coverage. However, for the Unreimbursed Healthcare Expenses, there is only one mid-year enrollment effective January 1st.
See also the Key Rules.
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Are there any limits to the amounts I can have deducted?
While there are not minimums, there are limits. The Unreimbursed Healthcare Expenses account is limited to $5,000 per year and the Child/Dependent Care account is limited to $5,000 per year (if filing separately this may be reduced to $2,500).
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Where can I get annual election, change of election, or termination forms?
You can make copies of all forms already distributed. New forms are available at GET FORMS.
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Where do I send the annual election, change of election, or termination forms?
You return these forms to Human Resources (see Enrollment Dates and Schedule). Do not send any forms directly to BSI Administrative Services. Your employer will make copies and send them to BSI Administrative Services for our records.
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What if I change my mind?
As part of the enrollment process you will get a “confirmation letter” from BSI Administrative Services indicating information about your annual elections. The letter will indicate when to return any changes you want to make should you change your mind.
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When can I change the amounts being deducted?
Other than changing your mind and using the confirmation letter, the IRS rules state that once you make an election, these amounts cannot be changed unless there is a allowed change: a significant change of cost or coverage for healthcare insurance, a change of family status, a change of job status, a change of primary residence, or a change of cost or coverage for child/dependent day care. Then the election changes must be consistent with and necessary or appropriate to the change in status. Changes can be to start, stop, increase or decrease current elections. To do so, you complete either a Change of Election Form (Form PR6) or Termination Form (Form PR5).
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What is a “change of cost or coverage” for Healthcare Insurance?
A change of cost for Healthcare Insurance applies to either you, your spouse, or your dependents when an employer advises that payroll deductions for contributions towards the group healthcare they provide will change. A change of coverage happens when an employer advises you that there is either a new insurance company or the amounts or services covered will change.
Your annual elections for the Healthcare Premiums account will be changed automatically to reflect the new costs. However, if you want to change your Unreimbursed Healthcare account you must complete either a Change of Election Form (Form PR6) or a Termination Form (Form PR5).
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What is a "change of Family Status"?
Once the enrollment period is over, you are only allowed to change your Unreimbursed Healthcare account annual elections if there is a change of family status: a birth or adoption of a child, marriage, divorce, death of a dependent, or when you change your household or dependents on your Form 1040 Individual Income Tax return (for example, when a child files their own tax return and is no longer your dependent).
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What is a “change of Job Status”?
Once the enrollment period is over, you are allowed to change your Unreimbursed Healthcare account annual elections if there is a change of job status for either you or you spouse or your dependents: terminate, get a new job, take an unpaid leave, switch between full-time and part-time jobs.
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What is a "change of Primary Residence”?
Once the enrollment period is over, you are allowed to change your Unreimbursed Healthcare account annual elections if there is a change of primary residence, i.e., your home. There is no mileage requirement or distance, simply a change.
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What is a “change of cost or coverage” for Child/Dependent Day Care?
Once the enrollment period is over, you are allowed to change your Child/Dependent Care account annual elections if there is a change to the costs or coverages for the day care. These changes basically allow you to change your Child/Dependent Care election throughout the plan year and make “use it or lose it” rule not very likely to happen.
Cost changes mean changes to the fees or hourly rates charged by the service provider. Coverage changes mean changes to the types of programs you use or the hours of care. For example: switching from a baby sitter and a pre-school program, or from pre-school to summer day camp, or adding or decreasing the number of hours you child attends a program.
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Can I transfer moneys between accounts?
No, you cannot move moneys between accounts.
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How do I decide how much to deduct?
That is your choice. BSI Administrative Services provides Enrollment Worksheets for Unreimbursed Healthcare (Form WS1) and Child/Dependent Care (Form WS2). Also, confidential individual counseling is available to help you, simply contact BSI Administrative Services (see below) and ask for enrollment counseling.
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How can I get help using the Enrollment Worksheet?
Since your information is kept confidential, contact BSI Administrative Services. See also the Enrollment Schedule for key dates.
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What are allowable expenses for the Healthcare Premiums Account?
Premiums paid by you as an employee towards group health insurance coverage for you or a dependent (including health insurance plans, HMO plans, dental plans, group term insurance, and group disability income, if applicable).
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What are allowable expenses for the Unreimbursed Healthcare Expenses Account?
Money set aside in this account can be used for healthcare not reimbursed under any other insurance plan for you or any dependent. Allowable expenses follow the IRS guidelines for your individual tax return (see Internal Revenue Code Section 215, instructions for IRS Form 1040, Schedule A, lines 1-4 and IRS Publication 502). See also Enrollment Worksheet (Form WS1). Some examples of qualifying expenses include:
- deductibles, co-insurance, or other out-of-pocket expenses not covered by any insurance, or other reimbursement program.
- eye care including fees to eye doctors, eye exams, eye glasses, contact lenses, laser eye surgery and sunglasses.
- dental care including checkups, x-rays, orthodontia/braces, oral surgery etc.
- prescription drugs including medicines, insulin, Viagra, and birth control.
- over-the-counter drugs including nicotine patches, cold medicines, aspirins, feminine hygiene products, birth control, pain relievers, ointments, analgesics, baby care, smoke cessation products and much more.
(See Examples)
- well care, preventive care, routine physical exams and immunizations.
- mental health and counseling including psychiatrists, psychologists, and in some cases social workers.
- holistic, eastern, or alternative medicine including acupunture, message therapy, and herbal remedies.
- chiropractic and other physical therapy.
- special schooling for physically or mentally handicapped, including remedial reading for dependents with dyslexia.
- health clubs when prescribed by a physician and not just for general health; thus, claims should be accompanied by a prescription (or note from the doctor describing the ailments and treatments).
- any out-of-pocket hospital costs for in-patient stays, emergency room visits, or out-patient treatment.
- travel costs to and from medical care, including ambulances, taxis, trains, buses, subways, and when you use a car an allowance of 24 cents per mile plus parking and tolls.
- special equipment authorized for medical care (hearing aids, special phone equipment for the deaf, wheelchairs, back braces, orthopedic shoes, arches, etc.).
Remember, these deductions are allowed for out-of-pocket expenses; so you cannot include amounts already reimbursed by insurance coverage.
Taxes are unique to each individual, so consult
your tax advisor as to your specific situation !
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What are allowable expenses for the Child/Dependent Care Account?
Expenses paid by you or your spouse for day care of an eligible dependent needed because you are working. The allowable deductions follow the IRS guidelines for your individual tax return (see the instructions to IRS Form 2441 and IRS Publication 503):
- You (and your spouse if married) must both be working; otherwise, to qualify, your spouse must be a full-time student or disabled.
- An eligible dependent can be any age if mentally or physically handicapped; otherwise, the dependent must be under age 13.
- The annual election cannot exceed $5,000 (or if for married but filing separately the limit may be $2,500) or the lesser of your earned income (annual compensation) or your spouse's earned income.
- You must provide the tax identification number, name, and address of the provider of the care services.
- Expenses reimbursed from the child/dependent care account cannot be applied to deductions or tax credits on your individual tax return.
See also Enrollment Worksheet (Form WS2). Some examples of qualifying expenses include: fees to certified day care centers, schooling before the first grade, or household services for the dependent as well as to run the home (housekeeper, maid, cook, baby-sitter, or cleaning person).
IRS rules state you cannot include child support payments, services to a chauffeur or gardener, schooling in or after the first grade, costs for an overnight camp, or costs for clothing or entertainment.
Taxes are unique to each individual, so consult
your tax advisor as to your specific situation !
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What about the tax credit for child and dependent care?
Expenses reimbursed from the child/dependent care account cannot also be claimed as a tax credit on your individual tax return (Form 1040, line 41). Sometimes this credit is better than the deduction allowed through the Flex Plan. While you can “Contact Us” for a general view, please consult your tax advisor as to whether to choose the tax credit or the deduction.
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What will it cost me to participate in the Flex Plan?
All costs for set-up and administration are being paid by you employer. You only have to set aside moneys that you would be spending anyway for health care or day care during the Plan Year.
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What happens if I no longer work here?
Before you leave, the specific options available to you will be fully explained. In general, deposits made into your accounts can continue to be claimed. Terminating either for a leave of absence or changing jobs affects the number of payrolls that you will have made, not your ability to claim amounts credited to your account.
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Will my information be kept confidential?
Yes, information provided to BSI Administrative Services counselors, whether orally, in writing, or E-mailed concerning your enrollment or claims will be kept strictly confidential.
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BSI Administrative Services. All Right Reserved.
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