benefit coordinators corporation (bcc) | 3838 camino del rio north, suite 380, san diego, ca 92108 |...

©2011 Benefit Coordinators Corporation. All rights reserved.

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Advantages of Section 125 Plans

Through Section 125, your premium contributions for medical, dental and vision plans can be paid with pre-tax dollars.

In addition, you will also be able to pay for eligible unreimbursed health care and dependent care expenses with pre-tax dollars.

The biggest advantage of a Flexible Spending Account is the tax savings.

© 2012 Benefit Coordinators Corporation. All rights reserved.



Features: Health Care Reimbursement Account

The Health Care Reimbursement Account allows you to pay for qualified, medically necessary medical, dental and vision expenses that are not covered, or only partially covered, by the insurance plans. Examples include deductibles, copayments for doctor office visits, prescriptions, over the counter drugs, and most medical/dental expenses not completely reimbursed at 100% by the insurance company.




To participate in the Unreimbursed Medical Account, you should conservatively estimate the out-of-pocket expenses you, your spouse and children will incur during the plan year. This includes qualified medical, dental and vision expenses not covered by insurance for you, your spouse and dependents. The maximum amount you can contribute during a plan year is $2,500.





Be conservative in estimating expenses If you fail to use your flex dollars by the end of the play year, you forfeit your account balance under the IRS “Use It or Lose It” rule.

Be aware that when you reduce your taxable income, you are also reducing your Social Security contributions. This reduction of Social Security (FICA) contributions may affect future retirement or disability benefits.




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The BCC Debit Card (powered by the Alegeus Technologies Flex Convenience Debit Card system) allows you to directly pay for qualified FSA expenses at the point of service.

Use your debit card at eligible FSA locations wherever MasterCard is accepted – from physician and dental offices to pharmacies and optical shops and dependent care providers

Approved expenses are automatically deducted from your pre-tax account

No need to submit claim forms and wait for a reimbursement

NOTE: Always save your itemized receipts. While there is no requirement for you to complete claim forms, additional documentation may be requested in some cases in order to confirm the eligibility of some debit card purchases. This is in accordance with IRS regulations.

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Debit Card Convenience




Features: Dependent Care Reimbursement Account The Dependent Care Account allows you to contribute up

to $5,000 annually ($2,500 if married but file taxes separately) toward eligible day care expenses. Day care expenses are defined as those which are necessary in order for you and your spouse, if married, to continue to work.

You may contribute annually up to $5,000 in the Dependent Care Account to offset day care expenses for eligible child(ren) or elderly dependents.

Elections cannot be changed once the plan year has started unless you or a covered dependent experience a qualifying life event (ex. birth, adoption, change in spouse’s employment status). Refer to your plan SPD for a complete listing.




Dependent Care Flowchart




Summary Once you have authorized your deduction, you

cannot change your contribution mid-year unless you have a qualifying family status change. Note: the change in election must be consistent with the change in family status.




An In-depth Look at Qualifying Expenses

Abortion Acupuncture Adoption, pre-adoption medical expenses Alcoholism treatment Ambulance Artificial limbs Artificial teeth Asthma treatments Bandages, elastic, gauze pads, liquid adhesives for small cuts Blood pressure monitoring devices Breast pumps and lactation supplies Carpal tunnel wrist supports Chiropractors• Circumcision• Co-insurance amounts

Cold/hot packs Contact lenses, materials and equipment Contraceptives Co-payments Crutches Deductibles Dental sealants Dental treatment (excludes cosmetic procedures) Dentures and denture adhesives Drug addiction/overdose treatment Egg donor fees Eye examinations and eyeglasses• First aid (creams and kits)• Flu shots• GIFT (Gamete Intra‐Fallopian Transfer)• Guide dog• Hearing aids

Hospital services Immunizations Laboratory fees Lasik eye surgery Medical information plan charges Medical monitoring and testing devices• Medical records charges• Norplant insertion or removal• Obstetrical expenses• Occlusal guards to prevent teeth grinding• Operations (excludes cosmetic procedures)• Organ donors• Osteopath fees• Oxygen• Physical exams• Physical therapy• Preventive care screenings

• Prosthesis • Psychiatric care• Radial keratotomy• Shipping and handling fees• Sterilization procedures• Taxes on medical services and products• Thermometers• Transplants• Transportation expenses for person toreceive medical care• Usual and customary charges, excess• Vaccines• Viagra• Walkers• Wheelchair• X-ray fees

Eligible Expenses

Arthritis gloves Braille books and magazines Breast reconstruction surgery following mastectomy

Expenses Requiring Letter of Medical Necessity

Chelation therapy Flouridation devices or services Learning disability, instructional fees

Allergy medicine Analgesics Antacids Antibiotic ointments Antihistamines Anti-itch creams Aspirin Bactine

Calamine lotion Claritin Cold medicine Decongestants Diabetic supplies Diaper rash ointments & creams Diarrhea medicine Ear wax removal products

Expectorants Eye drops Fever-reducing medications Headache medications Hemorrhoid treatments Insect bite creams & ointments Laxatives Menstrual pain relievers

Motion sickness pills Nicotine gum or patches Pain relievers Pregnancy test kits Rubbing alcoholSleep deprivation treatment Smoking cessation meds & programsSunburn creams and ointments

Sunscreen with high SPF Toothache and teething pain relievers Wart remover treatments Yeast infection medications

Medical alert bracelet or necklace Patterning exercise Television or telephone for hearing

Expenses Requiring Medical Prescription




FAQsWhat if I have other questions?

• 100 Ryan Court, Suite 200 Pittsburgh, PA 15205

• 1-800-685-6100

• www.benxcel.com


benefit coordinators corporation (bcc) | 3838 camino del rio north, suite 380, san diego, ca 92108 |...

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