Hudson City School District

Flexible Spending Account Plan

Flexible Spending AccountPlans (FSA) 2008

Health Care Reimbursement Account

Dependent Care Reimbursement Account

Reimbursement Accounts No Federal, State or FICA Tax

Results in 25 to 30% savings on Expenses

Funded Through Payroll Deduction

Hudson City School District pays for the administration costs

Pre-Tax vs. After-Tax

$25,142Spendable Income

$25,301

600___ After-Tax Election

___0_____

500Medicare 499

8,750Income Tax 8,600

$35,000Taxable Income 34,400

0Pre-Tax 600

$35,000Salary$35,000

After-TaxPre-Tax (use of Flex

Plan)

New and Improved Card Parameters

Flexible Spending PlanImproved Claim Filing Procedures

Expanded receipt request periods Direct Deposit Option on Dep. Care

Claims Grace Period for Claim Filings until

March 15th On line claim access

Hudson City School DistrictHealth Insurance Plans

New Plan Design Options & Varying Deductibles and Co-Pays

Increase in the cost share amount for Prescriptions

Flex Plan Helps Immediately!

Health Care Reimbursement Account Deductibles 20% or 30% Co-Insurance after

Deductible Prescription co-pays Vision Exams, Glasses and Contacts Dental Deductibles and Orthodontics

Up to $3, 500 per year in out-of- pocket costs !!!

Health CareReimbursement Account You tell us what you need at the

beginning of each year

Entire balance is available at the beginning of the plan year

Debit card & Claim Kits are issued.

You pay Hudson City School District back through payroll deductions – Tax Free and Interest Free!

Examples of Eligible Health Care Expenses: Deductibles Co-Pays Rx Costs Orthodontia Contacts or

glasses Contact lens

solutions Birth Control

Air conditioner for allergy relief

School Physicals RK eye surgery Acupuncture Psychiatric

Therapy Reimbursement

for mileage @ .20/mile

Over-the-counter expense items such as:

Tylenol Excedrin Robitussin Vicks Vapo Rub

Pepcid AC Claritin Neosporin

Ointment Band Aids

How can a health care reimbursement account help you? Vision Example

You know that you will have $500.00 in out of pocket costs for lenses, frames, office visit and contacts this year and do not have a Vision Plan.

You can elect $500.00 in your flex account and use this election for vision care.

How does the health care reimbursement account work? Budget for known expenses only!

You must have a receipt to claim reimbursement.

Reimbursement checks are issued twice monthly.

You have until March 31, 2009 to claim expenses incurred from Jan – Dec 2008.

How does the health care reimbursement account work?

Are you ever able to change your annual election once it has been made?

Qualifying Event

The New Grace Period

If you have an account balance remaining in 2007

New IRS law allows an additional 2 ½ months to incur claims in 2008

Automatically pays your 2007 balance first.

Balance paid from 2008 election

Dependent Care Expenses

Day Care Expenses

Baby-Sitting

Adult Day Care for Spouses and Parents

Day Care Example Currently paying $60 weekly in day care

4 weeks in each month

Savings are roughly 25% on taxes

Savings= 1 week monthly for free

Increase take home pay by $60 mo.

Dependent Care

Children under age 13 unless disabled Caregiver cannot be family member Need Tax ID number of care giver Cannot deduct on taxes at year end Up to $5,000 pre-tax per year ($2,500

if married/filing singly)

Child Care Enrollment

Your account may be used for all eligible dependents – whether or not they are enrolled in other insurance plans, so plan carefully

We record your election and issue a card and claim payment kit to your home.

Child Care Enrollment If you elect to participate in this

benefit, it will become effective January 2008. (expenses would have to be incurred between Jan – Dec of 2008)

Your benefits will continue throughout the plan year unless you have a qualifying event or change in status

Where to get help?

Enrollment Materials

Http://www.ezflexplan.com/northcoast

North Coast Administrators

1-440-835-4900 or 1-800-677-6690

Human Resources