What is a Cafeteria Plan? A Cafeteria Plan is a valuable benefit that not only just allows you to pre-tax, (exclude from W-2 wages), eligible benefits such as; health, dental or vision insurance premium plans, it also allows you to elect voluntary benefits such as as Flexible Spending Accounts “FSA” dependent care expenses, and out-of-pocket Unreimbursed Medical expenses.
Benefit elections you make during this Open Enrollment, will become effective January 1, 2021.
Changes this year? There are no changes this year.
REMINDER: Guess whats back?
Recently in May 2020, Congress passed the CARES ACT (COVID-3 Stimulus Bill), which included language to permanently reinstate coverage for over-the-counter drugs for FSAs and HSAs, without the need for a prescription. That’s right? OTC with medicine previously taking away by the Obama Care is back. And with an added bonus. They also included menstrual care products to the list of eligible items. Check our our OTC list, on the left side of this postcard.
To be reimbursed, provide the cash register receipt that lists the products purchased. It should list the product name, and may have a FSA code beside it. The CARES ACT allows expense for 2020, back to January 1, 2020. So be sure to count your OTC drug/item cost in for your Unreimbursed Medical FSA for 2021 Open Enrollment choices.
Note: OTC items in smaller drug stores/pharmacies will not have the item listed on the receipt. As sometimes it just says OTC. Therefore, you would have to attach to box top with price showing, and name of product, to identify the item for reimbursement.
How do I complete my Open Enrollment?
You will login to our SABCFlex Online Enrollment program to complete your enrollment for the Cafeteria Plan. Make sure you have your Social Security Number and date of birth to login in. You will use the full 9 digit SSN to access the site and your 6 digit date of birth as your password. Once in please walk through the steps and verify your payroll deducted benefits, complete and sign your form with your SSN number in the end. You may email yourself a copy or print your election when you are done. Forget something, need to log back in, do so and we keep the last choice you made.
Just Login to complete your Cafeteria Plan enrollment selections.
As you make your Cafeteria Plan selections, when you elect a qualifying benefit/insurance, this will auto selects the Cafeteria Plan and your eligible insurance premiums will then be deducted on a before tax basis. This will lower your W-2 reported wages by the amount of the premium(s) and give you an increase in spendable income.
Once the Plan Year begins you will not be allowed to make any changes to your election unless a Status Change occurs, as election under a Cafeteria Plan are irrevocable for the Plan Year, unless you qualify for a Status Change.
FLEXIBLE SPENDING ACCOUNTS “FSA” FSA is a choice option
Dependent Care Expenses
If you have qualified dependents that require care while you and/or your spouse work, participation in this account will save you valuable tax dollars. Expenses include day care, after school care, nursery school, pre-school and summer day camp.
For more information, click here.
- The deduction of Dependent Care offers each employee a tremendous tax savings. If you currently have these expenses, it may be to your benefit to take advantage of the plan. All requests for reimbursement are processed the same day they are received by SABC, (based on funds availability). Simply determine the election amount for the above Plan Year, for your Flexible Spending selection.
- Elections cannot exceed the annual maximum for Dependent Care of $5,000 (filing a single or joint return) and $2,500 (married filing a separate return).
- Just select the Dependent Care FSA option in the SABCFlex Open Enrollment and identify the Care cost you will incur for the Plan Year. Care may include registration fees.
UNREIMBURSED MEDICAL EXPENSES (URM)
If you, your spouse or qualifying dependent(s) have medical expenses, which you have to pay out of pocket such as; medical deductibles, co-insurance, co-pays, prescription drugs, dental expenses or eye care expenses, you will save valuable tax dollars by participating in this spending account. Our plan has the following features:
- FSA Unreimbursed Medical maximum, $2,750 Plan Year. (increased for 2020-2021 Plan Year). (enter a lesser amount if applicable.
- If I participate in the FSA Unreimbursed Medical and I terminate, how is my Plan treated. Unreimbursed Medical participants will make an election to participate in the Unreimbursed Medical Spending Accounts for the plan year. Your total election is available to you at any time during the plan year when you incur an expense(s). You must participate in the Unreimbursed Medical portion of the plan for the whole plan year. Your total election is available to you anytime during the plan year when you incur an expense(s). Should you terminate during the plan year, in lieu of COBRA; your remaining election will come from your last paycheck. Expense claims may be for you and/or an eligible family member, (based on the IRSs, definition of a dependent for Dependent Care and Dependent Adult “to” age 27 for Unreimbursed Medical).
- Your Plan allows for a $550.00 funds for Unreimbursed Medical Spending accounts only, to rollover from the remaining balances of your plan year closing, to be allowed to Roll to the new Plan Year. The rollover amount will not affect an employee’s maximum limit election. Funds greater than the allowed Rollover limit, not used during the plan benefit period and claimed before the run-out period is complete, shall be forfeited, due to the use-it-or- lose-it Plan rule.
- Your plan offers a 60 day run-out period to submit claims to spending down remaining funds in your FSA Plan.
- Follow the close of the run-out period, your plan shall close, and remaining balances not claimed or rolled, shall be forfeited.
How do I make a change “After” my Open Enrollment is over?
Cafeteria Plan elections are irrevocable for the Plan Year. Once you have made your selection, you must have a qualifying Status Change in order to change your benefit, once the Plan has started.
Your Group Health Plan offers a HEALTH REIMBURSEMENT ARRANGEMENT (HRA) Plan, that SABC administers. Here is how it works.
The HRA is a self-funded health plan, which supplements MCU’s current Blue Cross/Blue Shield health plan. (The HRA is linked to your selection of MCU’s Group Health Plan). The HRA’s benefit year is the same as MCU’s health plan year. The HRA pays $2,250, toward your deductible for inpatient and/or outpatient stays, after your first $250 of the $2,500 deductible is met, (Max: $4,500 per family, per calendar year, or 2 members), or the HRA will pay $2,250 over all, after you have incurred up to $4,000 of out-of-pocket expenses. (Max: $4,500 per family, per calendar year, or 2 members). The Employee is responsible for the first $250 deductible, and $1,500 of out-of-pocket medical expenses. Your HRA pays to you, not to the provider. Therefore, be sure you are remitting your Explanation of Benefits to SABC when you have incurred expenses toward your deductible. After you have met the $250 deductible, you are eligible to be reimbursed for your remaining cost as outlined above.
Please feel free to call SABC with any questions. Call 601-856-9933.
