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© Hitesman & Wold, P.A. 2019 Cafeteria Plan Summary Description (3-11) 52 Please note that it is not necessary that you have actually paid an amount for that expense to be eligible for reimbursement. You only must have incurred the expense and not have been reimbursed or paid from another source. An expense is "incurred" when the service which gives rise to the expense has been provided, not when you are billed or when you pay the expense. Special Rule: A special rule applies to expenses for orthodontia care. Such expenses may be reimbursed before the orthodontia care has been provided if you have actually paid the healt hcare provider in advance in order to receive the services (e.g., an upfront payment required to receive services). 7.8 What is the Grace Period? “Grace Period” means the period beginning on January 1 and ending on March 15 each Plan Year. Claims incurred during the Grace Period will be considered to have been incurred during both the preceding Plan Year and the current Plan Year. For example, a claim incurred on March 1, 20 18 will be deemed to have been incurred during both the Plan Year running from January 1 through December 31, 2017, and the Plan Year running from January 1 through December 31, 2018. Claims incurred during the Grace Period will be first allocated to and reimbursed from your Limited Scope account for the preceding Plan Year until such account is exhausted. Thereafter, any such claims will be allocated to and reimbursed from your Limited Scope account for the current Plan Year. Claims incurred during the Grace Period will be allocated based upon the date the claim is received. Once a cl aim is allocated to an account, no changes, modifications, or adjustments will be allowed. In addition, no adjustment to your election for the current Plan Year may be made based upon the amount of claims incurred during the Grace Period that are reimbursed from the prior Plan Year’s account. NOTE: A claim incurred during the preceding Plan Year and submitted during the claims run -out period will be processed subsequent to a previously submitted claim incurred during the Grace Period, even if your Limited Scope account from the preceding Plan Year is exhausted by reimbursement of the claim incurred during the Grace Period. 7.9 What if I am no longer eligible? If your employment terminates, or you otherwise cease to be eligible for coverage under the Limited Scope Health FSA, your benefits under the Limited Scope Health FSA stop. You may not make any further contributions to your Limited Scope account, and you may not submit claims for reimbursement of expenses incurred after you terminated employment or otherwise ceased to be eligible for coverage. You may, however, continue to submit claims for expenses incurred before you terminated employment or otherwise ceased to be eligible for coverage until the expiration of the claims run out period following the end of the Plan Year described in Section 4.5. NOTE: This rule may differ from the rule applicable to the Dependent Care FSA. Please refer to the part of this summary describing the Dependent Care FSA for the rules that apply to the Dependent Care FSA. 7.10 Can coverage be continued? If your employment terminates or you otherwise cease to be eligible for the Limited Scope Health FSA, you and any others who receive their coverage through you may be able to continue that coverage. Continuation coverage is available in accordance with the Consolidated Omnibu s Budget Reconciliation Act of 1985 ("COBRA”) and the Uniformed Services Employment and Reemployment Rights Act of 1994 ("USERRA"). These continuation rights are described later in this summary.