10-10-2022 Council Packet - Laserfiche WebLink

Home Browse Search

© Hitesman & Wold, P.A. 2019 Cafeteria Plan Summary Description (3-11) 45 PART VII. LIMITED SCOPE HEALTH FLEXIBLE SPENDING ACCOUNT 7.1 What benefits are provided? The Cafeteria Plan permits you to elect to receive reimbursement for some or all of your uninsured medical and dental expenses under the Limited Scope Health Flexible Spending Account ("Limited Scope Health FSA"). Under the Limited Scope Health FSA, you provide a source of pre-tax dollars by entering into a salary reduction agreement with your Employer. You may also use any availabl e Employer contributions. Those pre-tax dollars will be used to reimburse you for your Eligible Expenses. You save Social Security and income taxes on the amount of your salary reduction for medical expenses. The coverage provided through the Limited Scope Health FSA is subject to the privacy and security provisions of the Health Insurance Portability and Accountability Act of 1996 (“HIPAA”). The Limited Scope Health FSA is intended to be an excepted benefit under the HIPAA portability rules. Accordingly, neither the HIPAA portability rules nor the preventative care mandate of the Patient Protection and Affordable Care Act, as amended, apply to the Limited Scope Health FSA. 7.2 How do I become a Participant? To become a Participant in the Limited Scope Health FSA, you must first become a Participant in the Cafeteria Plan. You must also satisfy the eligibility requirements for the Limited Scope Health FSA. The Limited Scope Health FSA’s eligibility requirements are the same as the eligibility requirements for the Cafeteria Plan as described in Section 1.4. If you satisfy those requirements, y ou become a Participant in the Limited Scope Health FSA by electing benefits under the Limited Scope Health FSA during your initial or subsequent annual enrollment periods. NOTE: Participation in this Limited Scope Health FSA will not make you ineligible to participate in the HSA Contribution Feature, and will not make you and any of your dependents covered by the Limited Scope Health FSA ineligible to make or receive contributions to a health savings account. 7.3 What is my limited scope medical expense account? If you elect benefits under the Limited Scope Health FSA, an account will be established in your name to keep a record of the benefits to which you are entitled. When you complete the election form, you specify the amount of benefits you wish to receive. These benefits may be funded by allocation of any available Employer contribution and, to the extent the Employer contribution is insufficient, with pre-tax dollars through salary reduction contributions. The full amount of your election under the Limited Scope Health FSA will be available at any time during the Plan Year, reduced by the amount of prior reimbursements under the Limited Scope Health FSA received during the Plan Year. The Limited Scope account is a bookkeeping account only. Benefits under the Limited Scope Health FSA are paid from the Employer’s general assets. There is no trust. 7.4 What are the maximum reimbursements I may receive? The maximum amount of medical expense reimbursements is the IRS maximum per Plan Year. The minimum election is $500 per participant per Plan Year. To receive the full maximum, you must also include any Employer contribution allocated to the Limited Scope Health FSA . For a short Plan Year, the maximum is unchanged for the number of pay periods remaining in the Plan Year. If you enter the plan