confidential. confidential copyright © 2012 agenda high deductible health plan (cdhp) and hra plan...

CONFIDENTIALCONFIDENTIAL

CONFIDENTIALCopyright © 2012

AgendaAgenda

• High Deductible Health Plan (CDHP) and HRA Plan Overview

• Wellness Incentives

• FSA Plan Overview

• Health Reserve Account (VEBA) Overview

• Genesis OneCard Debit Card

• Online Tool Kit

• Questions


CDHP CDHP

• Lower premium cost out of your paycheck

• Brown County funds most of your deductible with HRA contributions

• Wellness Incentives• Save for retirement in the Health

Reserve Account (VEBA)


Health Reimbursement Arrangement (HRA)Health Reimbursement Arrangement (HRA)

• In 2013 you will receive the following amounts contributed in your HRA quarterly:– Single = $300 ($1,200 annually)

– Family = $600 ($2,400 annually)

• HRA money can be used for all 213(d) eligible expenses– See your Qualified Expenses handout

• Unused HRA money rolls over from quarter to quarter• HRA money in excess of your deductible available at the

end of the runout period each year (March 31) is deposited into a Health Reserve Account (VEBA) at ING

• In 2013 you will receive the following amounts contributed in your HRA quarterly:– Single = $300 ($1,200 annually)

– Family = $600 ($2,400 annually)

• HRA money can be used for all 213(d) eligible expenses– See your Qualified Expenses handout

• Unused HRA money rolls over from quarter to quarter• HRA money in excess of your deductible available at the

end of the runout period each year (March 31) is deposited into a Health Reserve Account (VEBA) at ING


Wellness IncentivesWellness Incentives

• Employees and spouses enrolled in the CDHP plan may choose to participate in a Wellness Incentive Program

• After an employee completes one of the incentives, the dollars will be deposited into the HRA accounts after the completion of each quarter

• Incentives:– $100 per annual exam– $25 per dental cleaning (2x per year maximum)– $50 for Wellness Incentive Form

• Employees and spouses can each complete the incentives

• Maximum incentives are $200/single and $500/family


Flexible Spending AccountsFlexible Spending Accounts

HEALTH CARE REIMBURSEMENT ACCOUNT

– This plan allows you to use pre-tax dollars to pay for any of your eligible out-of-pocket medical and/or dental expenses.

DEPENDENT CARE REIMBURSEMENT ACCOUNT

– This plan allows you to set aside pre-tax dollars to pay for your eligible dependent care expenses.

HEALTH CARE REIMBURSEMENT ACCOUNT

– This plan allows you to use pre-tax dollars to pay for any of your eligible out-of-pocket medical and/or dental expenses.

DEPENDENT CARE REIMBURSEMENT ACCOUNT

– This plan allows you to set aside pre-tax dollars to pay for your eligible dependent care expenses.


Reimbursable ExpensesReimbursable Expenses

• Expenses not covered by your insurance plans can be reimbursed tax-free.– Co-pays and deductibles from your medical plan– Dental expenses– Prescription drugs– Chiropractic services– Prescription eyeglasses and contact lenses– Laser eye surgery– Hearing aids– Orthodontia – Etc.

• Expenses not covered by your insurance plans can be reimbursed tax-free.– Co-pays and deductibles from your medical plan– Dental expenses– Prescription drugs– Chiropractic services– Prescription eyeglasses and contact lenses– Laser eye surgery– Hearing aids– Orthodontia – Etc.

www.irs.gov

Publication 502


Additional ServicesAdditional Services

• Recurring Dependent Care Claim Program– Submit a Recurring Dependent Care Request Form that is

signed by your daycare provider and receive reimbursements automatically after each payroll deduction.

• Direct Deposit– Please complete our Direct Deposit Form to have

reimbursements sent directly to your checking or savings account

• Genesis Employee Benefits Customer Care Team is available via phone, email or online chat. We are happy to serve you Monday through Friday, 7:30 am to 4:30 p.m. CST.


Flex Plan Reimbursement AccountsFlex Plan Reimbursement Accounts

Important things to keep in mind:• Max Election Amounts: Medical FSA $2,500 Medical FSA $2,500 and

Dependent Care FSA $5,000. Dependent Care FSA $5,000. • ”Use it or Lose it” Rule.• Expenses must be incurred with a date of service

during the plan year. January 1st through March January 1st through March 3131stst the following year. the following year.

• If you have both a FSA and an HRA, the FSA balance must be zero before you receive reimbursement for HRA claims.


How are VEBA Contributions Determined?How are VEBA Contributions Determined?

• HRA balances in excess of your medical plan deductible at the end of the plan year will be deposited into a VEBA Health Savings Plan.VEBA Health Savings Plan.

• Example:– You have had family CDHP coverage with a $3,000

deductible in 2012 and again in 2013– You have $2,000 remaining in your HRA from 2012– You receive and additional $2,400 for 2013 (applied quarterly)

– As of December 31, 2013 your HRA balance is $4,400– Your 2013 deductible is $3,000, so the difference ($4,400

- $3,000) $1,400 is deposited into your VEBA account.


VEBA Account FeaturesVEBA Account Features

• Similar to a 457 plan for health care expenses

• Your VEBA account balances can be invested

• Account balances roll-over year-to-year

• Account balances are available to reimburse expenses during your active employment years as well as during retirement


VEBA - Triple Tax-FreeVEBA - Triple Tax-Free

• ContributionsContributions made to your account are not subject to taxation

• EarningsEarnings on your account balance are not subject to taxation

• ClaimsClaims payment withdrawals for eligible expenses are not subject to taxation

• The money in your VEBA account is available for medical expenses if you need it now -OR--OR- save for future expenses


Why is the VEBA Important?Why is the VEBA Important?


VEBA – Surviving Dependent Account AccessVEBA – Surviving Dependent Account Access

• What happens to my account when I pass away?– If you have a spouse and/or dependents at the time of your death,

they may continue to use your account to pay any eligible health care expenses that they incur until the account is exhausted. Please note that dependents must have been a “dependent” as defined by the IRS at the time of your death.

– Under IRS rules, no amount can be paid out of your account upon your death to anyone but your eligible spouse and/or dependents, and the payments can only be for the reimbursement of eligible health care expenses.

– In the event that you have no spouse or eligible dependents at the time of death, the executor of the estate may submit any final eligible expenses for reimbursement to the estate. Any remaining funds in the account after the final reimbursement will be redistributed among the remaining members of the Brown County VEBA Health Savings Trust.


Claim

Payment

(Applied to Deductible & Out-of-Pocket)Individual’s

Responsibility

How Does the Ordering Work?How Does the Ordering Work?

High Deductible Health Plan

Flex 125 Plan(until exhausted)

Out-of-Pocket HRA Account(until exhausted)

Tax-Free Reimbursement

VEBA Funded HRA Account

Balance Carried Into Retirement

$1,500/$3,000 Deductible

Up to $2,500

$1,200/$2,400


Postemployment Claims & ExpensesPostemployment Claims & Expenses

Payment

(Applied to Deductible & Out-of-Pocket)

Individual’s Responsibility

Retiree Medical –or– Medicare

VEBA Funded HRA Account

Tax-Free Reimbursement

Premium Costs

Retiree Medical PlanMedicare Part BMedicare Part DMedicare Supp

Long-Term CareDental PlanVision Plan

Claim


Genesis OneCard Debit CardGenesis OneCard Debit Card

• The Genesis OneCard is a debit card designed to give you easy access to your Medical Flexible Spending, Dependent Care, and HRA Accounts. – You may use the card for your everyday medical expenses.

• The card works just like a bank debit card, but there are three key differences:

1. Card use is limited to merchants and expenses deemed eligible by your plan.

2. You cannot use it at an ATM, or to obtain cash back when making a purchase.

3. You will not have a PIN with this card. When given the option between debit or credit at a merchant terminal, choose credit.


Genesis OneCard Auto-AdjudicationGenesis OneCard Auto-Adjudication

• Prescription and Medical Co-Pays will be auto-adjudicated for Brown County’s health plans.

• IIAS Compliant Merchants and advanced Debit Card technology allows us to match merchant MTC codes to co-pay amounts.

• Approximately 8 out of 10 debit card claims do not require receipt submission.


Online Tool KitOnline Tool Kit

Manage Investments

Manage Investments

Manage Claims

Manage Claims


Online Tool KitOnline Tool Kit

• Login at www.GenesisBenefits.net– click on “Participant Login”– Choose Login Type

• Look-Up Account Balances• File FSA, HRA, and VEBA Claims Online• Upload Receipts Online• Claim Status Information• Reimbursement History• Forms Library


Overview of Claim Submission OptionsOverview of Claim Submission Options

Claim Filing Options:1.Genesis OneCard Debit Card

2.Online Claim Filing

3.Paper Claim Form

Options to Submit Claim Documentation:1.Secure Receipt Upload

2.Genesis Secure Claims eFax: 866-450-1480

3.Email: [email protected]

4.Postal Mail


Open EnrollmentOpen Enrollment

• FSA Open Enrollment FSA Open Enrollment runs from runs from October 29October 29thth

toto November 20 November 20thth • 2013 Plan Year: Starts January 1st, 2013

– Medical FSA Max Election: $2,500– Dependent Care FSA Max Election: $5,000

• Don’t forget to sign up for Direct Deposit Reimbursement! You may enter bank account information for direct deposit online during enrollment, or later using a paper form.

• No paperwork is needed for the HRA and VEBA enrollment


QuestionsQuestions

confidential. confidential copyright © 2012 agenda high deductible health plan (cdhp) and hra plan...

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