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News
Your source on union-negotiated health care
benefits
Health Care Spending Accounts help members save
money
Nov. 4, 2004 - Open enrollment for the new health care
spending account (HCSA) will take place Oct. 29 through Nov. 15,
2004. During this time employees can opt to put pretax
dollars (up to $500 the first year, $1000 the second year) into
an account from which they will reimburse themselves
for qualified medical expenses not covered by insurance.
Because the money is not subject to federal,
state or local taxes you save money. It’s estimated that
members can save $250 over a two-year period. Amounts
can vary based on your tax bracket. The money will be deducted from 24
paychecks.
“The savings of this program will help offset
the premium increases that will affect members beginning July 1, 2005,“
said JHCC Labor Co-Chair Marianne Steger.
Eligible expenses that can be paid for from the HCSA include co-pays,
deductibles, co-insurance for medical, dental and vision, eye correction
surgery, and many over the counter medications.
The benefit was negotiated by the union
in the last round of bargaining and will take effect January
1, 2005 for calendar year 2005. In accordance with IRS regulations, any
money in a HCSA must be used by the end of the year or members
will lose it. Therefore it is important that members use good
planning in determining how much money to put into the account.
Employees will receive an introductory
packet from Flexsave, the administrator of the program, with
all the information they need to determine whether or not they want to
participate.
See Related
FlexSave
website
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