Sharpener - September 3, 2008
September 30 Deadline
Below is a list outlining items due by September 30, and the GoodHealth program actions to be completed by December 15.
#1 Enrolling in an FSA – This Sharpener provides information on a new benefit – a healthcare Flexible Spending Account (FSA).
#2 Changing Plans – To switch MPS group insurance plan coverage – either health or dental – the deadline is September 30.
#3 Adding Dependents – It’s time to make certain your spouse and all dependent children are covered. See below.
Are All of Your Dependents Covered?
If you did not add a dependent at the time of birth or marriage, you should apply for coverage during the September open enrollment period. (Even if you have family coverage, a new dependent is not automatically added to your health and dental coverage.)
You should check the dependent information on the second page of the "MPS Employee Benefits Application Form" mailed to your home this fall. If all of your dependents are not listed, you should add them to the form.
To add a child, you must provide MPS with a copy of the birth certificate. To add a spouse, you must send a copy of your marriage certificate to MPS. If possible, documentation should be sent with your application.
Flexible Spending Account (FSA)
This September, for the first time, MTEA members are eligible to enroll in a new, negotiated benefit – a Flexible Spending Account (FSA). An FSA lets you use pre-tax dollars to pay for out-of-pocket medical expenses - saving you money!
We recommend that you consider enrolling in an FSA for 2009 during this September’s annual open enrollment period. You can use 2009 as a trial year, with no obligation to enroll for 2010.
Key Points on the New FSA
Healthcare FSA - You can use the new FSA to pay for a wide range of out-of-pocket healthcare-related items, defined by IRS, including medical copays, deductibles, and coinsurance; over-the-counter medicine; dentist bills; lasik surgery, eyeglasses, and contacts, etc.
Voluntary - You decide if you want an FSA or not.
Annual Enrollment - During September of each year, you have the option to enroll for the next calendar year.
Calendar Year - Per IRS, all FSA paycheck deductions are taken within a calendar year, for expenses incurred during that year.
$2,000 Maximum - When you enroll, you determine your FSA amount for the coming calendar year, up to $2,000.
Use It or Lose It - We recommend caution on estimating your 2009 eligible expenses. Under IRS rules, you lose whatever you don't use within the tax year.
Pre-Tax - MPS will deduct your FSA amount before it deducts for federal and state income taxes and Social Security.
20 Deductions - For 10-month employees, there will be 20 FSA deductions. For example, if you decide to put aside $500 for 2009, $25 will be deducted for your FSA on 20 paychecks during 2009.
Online Enrollment Only - Paper enrollment is not available. Go to Employee Self Service section of the MPS Portal.
Resources for Your FSA Questions
MPS mailed a “Healthcare Flexible Spending Account (FSA)" Program booklet along with the 2008 "MPS Open Enrollment Booklet." (If you haven’t received your packet at home, it should be delivered within a week.) The FSA booklet includes:
- A step-by-step guide for enrolling online.
- A worksheet to estimate your eligible expenses for 2009.
SHPS is the vendor that administers the MPS FSA program – as well as components of the MPS GoodHealth program. For easy access to SHPS FSA Web pages, go to mtea.org (GoodHealth). You’ll find:
- A comprehensive, alphabetical listing of healthcare expenses – detailing those eligible and not.
- An easy-to-read overview on FSAs with a chart showing an example of annual savings.
*Your Health Care – Important Deadlines*
September 30
Open enrollment for a Flexible Spending Account (FSA) for next tax year - January 1, 2009 through December 31, 2009.
September 30
Open enrollment to add dependents or change plans for group health and dental insurance coverage, effective November 1, 2008.
December 15
Take the annual Personal Health Assessment (PHA) - you and your spouse - to avoid a $200 premium contribution ($100 deducted on the February 20 and March 20, 2009 paychecks).
December 15
Complete a GoodHealth voluntary program(s) to earn a $200 incentive – a pre-tax contribution to your individual Health Reimbursement Account (HRA) to be set up by February 28, 2009.
Focusing First on FSA Enrollment
For most members, the FSA is a new concept. We'd like to help you understand how it can benefit you financially so you can make an informed choice on enrolling this September, and if you do, determining a conservative amount for 2009.
FSA Is Not an HRA
There are similarities between an FSA and a Health Reimbursement Account (HRA), but there also important differences. These were outlined in the MPS PowerPoint presentation, shown in most schools during banking day on August 29.
Delaying HRA Details
We are waiting until winter to provide detailed information in Sharpener about HRAs for two reasons.
#1 - HRAs Start in February
HRAs will not be available to MTEA members until this winter - probably late February. By contract, if you and your spouse complete the annual PHA by December 15, 2008, and you complete a GoodHealth voluntary program(s) by December 15, 2008, you will automatically receive a $200 HRA by February 28, 2009.
#2 - FSA/HRA Confusion
Both the HRA and FSA are new benefits, subject to IRS regulations, and can be a bit confusing initially. We'd like you to have a chance to learn about FSAs first, during open enrollment this September.
Thirsty Third Thursday
Our union's SpeakOut! Committee invites you to a social networking opportunity at O'Briens, 4928 West Vliet Street - a casual pub two blocks east of the MTEA Building. The year's first Thirsty Third Thursday is September 18, starting at 4:30 p.m.