Group Name Employer ID: CHO Plan Year: 01/01/2016-12/31/2016 Presented By: Name Title Instructions: Find and Replace Delete This Slide Before Presenting Getting Started: Enrollment presentations can be shown to employees to help explain how to use their Choice Strategies plan. • Before showing this presentation to employees, please customize it by finding and replacing the following: Group Name: Group Name Health Insurance Carrier: Carrier Plan Year: 01/01/2016-12/31/2016 Plan Start Date: 01/01/2016 HRA Single Out-of-Pocket Responsibility: $$$$$ HRA Family Out-of-Pocket Responsibility: $$$$$$ HRA Single Funding: $ HRA Family Funding: $$ Carrier Single Deductible: $$$ Carrier Family Deductible: $$$$ FSA Maximum: $2,550 Your Health Plan Carrier Deductible: • Single: $$$ • Family: $$$$ Effective 01/01/2016, Choice Strategies will be administering: • Health Reimbursement Arrangement (HRA) • Flexible Spending Account (FSA) • Dependent Care Account (DCA) Health Reimbursement Arrangement (HRA) Plan Year: 01/01/2016-12/31/2016 Key Features • Employer-funded Funds used are tax deductible to employer Tax free to the employee • Implementation in combination with High Deductible Health Plan helps to lower costs Funding • BEFORE funds are available in the HRA for use, you must pay the following deductible expenses out-ofpocket. Single: $$$$$ Family: $$$$$$ • AFTER you pay the HRA deductible out-ofpocket, the HRA reimburses up to: Single: $$$$$ Family: $$$$$$ Eligible Expenses • Medical Deductible Co-pay Coinsurance • Prescriptions How is the deductible tracked? Deductible not satisfied Submit expenses via manual claims as you pay them out of pocket Choice Strategies will track how much has been paid towards your deductible You must continue to submit expenses as you pay them Deductible satisfied HRA funds are now available for use What supporting documentation should I send? Explanation of Benefits (EOB) Provider Bill or Statement • Statement from your health insurance company detailing your responsibility as the patient (deductible) and the insurance adjustments made. • A detailed bill or statement from your doctor’s office that details the date of service, procedures performed, amount due, doctor’s name, insurance adjustments, etc. When will the HRA funds become available? Provider Pay: Choice will automatically issue payment via check to your provider after your required out of pocket portion is satisfied. Member Pay: Choice will automatically issue payment via check or direct deposit to you after your required out of pocket portion is satisfied. Choice Strategies Card: If you do not have a Choice Strategies Card, it will be issued to you once your required out of pocket portion is satisfied. You can then use the card for any eligible expenses after that time up to the HRA limit. The HRA Run Out Period What Is It? • A 3-month period of time when employees may still receive bills/statements from prior year services. Employees may submit manual claims for expenses during this time • Claims must be submitted manually Do not use the Choice Strategies Card for prior year expenses with an HRA My Plans Run Out • Plan Year 01/01/2016-12/31/2016 • Run Out Period 01/01/2017-03/31/2017 Flexible Spending Account (FSA) Plan Year: 01/01/2016-12/31/2016 Key Features • Employer-owned Reduced payroll taxes! • Employee-funded Pre-tax contributions per pay period • Prefunded Employees have access to funds from day 1 of the plan year Funding • IRS Contribution limit $2,550 pre-tax Eligible Expenses • All IRS eligible medical expenses IRS Publication 502 WageWorks eligible expense list + Doctor Office visits + Hospital visits + Copays & Coinsurance + Prescriptions + Some over-the-Counter products + Vision + Dental + And More! The FSA Grace Period What Is It? • A 2 ½ month period of time that extends the plan year so that participants can use any remaining funds • Choice Strategies Card can be used during this time For previous year expenses For expenses incurred during the Grace period My Plans Run Out • Plan Year 01/01/2016-12/31/2016 • Grace Period 01/01/2017-03/15/2017 The FSA Carryover What Is It? Example • A provision for FSAs that allows up to $500 to carry over from year to year • John had a previous year FSA for $2,500. • The carryover amount does not impact how much someone can contribute in the following year • The $500 carried over into his new FSA. • He spent all but $500. • He choose to elect the full IRS maximum of $2,550 for his new FSA. • John now has a new FSA with a balance of $3,050. Dependent Care Account (DCA) Plan Year: 01/01/2016-12/31/2016 Key Features • Employer-owned Reduced payroll taxes! • Employee-funded Pre-tax contributions per pay period • Funds Accumulate Funds become available after they are deposited into the account Funding Eligible Expenses • IRS Contribution limit • All IRS eligible custodial care expenses $5,000 pre-tax + Married and filing jointly $2,500 pre-tax + Married and filing separately WageWorks eligible expense list + Babysitting (work-related, not provided by your dependent) + Before or after school programs (primarily custodial) + Custodial elder care + Nanny + Preschool + Summer day camp + Transportation to and from eligible dependent care Employee Savings Example Without FSA / DCA Gross Monthly Salary $2,500.00 Less: Federal Income Tax $333.61 State Income Tax $174.79 FICA Tax $191.25 Net Income $1,800.35 Less: Health Care Expenses $200.00 Dependent Care $400.00 Spendable Income $1,200.35 Based on 13.34% Federal Income Tax, 7% State Income Tax, and 7.65% FICA With FSA/DCA Gross Monthly Salary Less: Health Care Expenses Dependent Care Taxable Income Less: Federal Income Tax State Income Tax FICA Tax Spendable Income Monthly Savings Annual Savings $2,500.00 $200.00 $400.00 $1,900.00 $253.54 $132.84 $145.35 $1,368.27 $167.92 $2,015.04 The Choice Strategies Card Key Features • 1 card Even if there are multiple accounts • Swipe as Credit vs. Debit Access to the PIN, if needed, is on the “My Card” tab in the member online account • Card activates upon first use for an eligible expense Within the available balance on the plan • Spouses automatically receive their own card Additional dependent cards are issued upon request, free of charge Payment Example: Medical Deductible Expenses Present health insurance carrier ID card • Pay copay if applicable Complete visit with the healthcare provider • Provider will submit information to health insurance carrier • Carrier will make adjustments and issue an Explanation of Benefits (EOB) • Provider will issue a detailed bill or statement Pay the bill using the Choice Strategies Card • Provide the card number on the provider bill within the billing section Do not pay on the date of service. Wait until you receive the Explanation of Benefits from Carrier. Payment Example: Prescription Expenses Bring the prescription to pharmacy Pharmacist will advise of the prescription price • Make sure that the pharmacy has your updated insurance/benefit information Pay the bill using the Choice Strategies Card • Swipe the card as credit (instead of debit) for your convenience IIAS (Inventory Information Approval System) No Request for documentation on Rx charges if IIAS Approved Pharmacy is used. (List available on www.choice-strategies.com) Submitting a Claim Online • Instructional video available Processing time is about 1-3 business days Only 2 more days to receive reimbursement if signed up for direct deposit Mobile App • Instructional video available Take pictures of your supporting documentation and upload directly to transactions / claim submissions Paper • Fax: 1-877-723-0148 • Mail: P.O. Box 2205, South Burlington, VT 05407 Documentation Requirements Requirement • The IRS states that supporting documentation must be supplied for card transactions related to Group Name plans. Keeps a company’s plan in compliance Your Responsibility • Respond to documentation requests made by Choice Strategies Notices are sent via email or mail. + Always email, if on file + Multiple notices sent • Appropriate documentation includes: Explanation of Benefits Detailed providers bill or statement No Response? • Card will be placed in a temporarily inactive state until the transaction can be resolved Resolution occurs when appropriate documentation is sent or a refund is made to the account Online Account & Mobile Application Online Account • Training Video: https://www.brainshark.com/c cc/NewMemberPortalOvervie w Mobile App • Training Video: https://www.brainshark.com/ccc/CSMobileApp Features • Available Balance • Card Status • Transaction History • Update Personal Information • Upload Supporting Documents • Submit Claims Online We are Here to Help! Phone: 888-278-2555 (Option 2) Hours: Monday-Friday 8:00am – 8:00pm EST