Health Care Reimbursement Account FAQ
Questions and Answers Regarding Participation in the Health Care Reimbursement AccountsQ: What are Health Care Reimbursement Accounts?
A: Health Care Reimbursement Accounts enable you to pay for expenses which are not covered by our insured
medical plan and save taxes at the same time. These accounts allow you to set aside monies on a pretax basis
and then be reimbursed by us for out-of-pocket medical, dental and vision expenses incurred by you and your
dependents from these monies. The expenses which qualify are those permitted by Section 213 of the Internal
Revenue Code. You may not use these accounts for the cost of health care coverage maintained outside of the
Plan.Q: When can I enroll?
A: You may enroll as of the date you are eligible for our group medical plan.
Q: What is the maximum amount I can deduct for a plan year?
A: You may elect to have up to $3,000 deducted from your pay if you will be a participant for the full calendar
year. If you are a new contractor and will not be eligible for the full year, your maximum amount will be prorated
based on the number of months of actual participation.Q: Can I change the amount I have set aside to be deducted for the plan year?
A: No. You may not change the deduction amount once you have begun participation in the plan.
Q: What if a major event occurs in my life?
A: For significant events in one's life, such as a marriage, divorce, birth in the family, etc., changes may
be allowed.Q: Can I make changes to my bi-weekly payroll deductions if I forsee a large medical expense?
A: No, unless the expense is related to a significant event in one's life such as those mentioned above.
Q: What happens to my account if I leave Chancellor?
A: Your payroll deductions will stop upon termination of your contract with us. If you wish to continue your
participation until the end of the calendar year you may make a lump sum pre-tax contribution from your last
paycheck for the balance of your contributions elected for the year. If you elect this option, you need to authorize
us to deduct the contribution from your last payroll. Choosing this option allows you to submit claims for
expenses incurred through December 31.If you do not choose to continue, you may file claims only for expenses incurred before the end of your contract.
Q: What happens if I have not used all of the money that has been deducted for this plan
and the plan year ends?A: The money will be forfeited to the Health Care Reimbursement Account. For this reason, you must estimate, to the best of your ability, the amount you will need to deduct to cover medical expenses outside of your health insurance premiums and any expenses covered by
your health plan.Q: How long do I have after the end of the plan year to submit claims?
A: You have 90 days after the end of the plan year to submit claims.
Q: How do I submit a claim?
A: You submit a claim by providing Chancellor with a bill from the service provider and a completed application,
available on Chancellor's web site.Q: Once I have begun participation in the plan, what if I submit a bill that exceeds the
amount I have put towards the plan at that time?A: The bill will not be paid until your contribution amount to the Health Care Reimbursement Account
matches the amount of the bill. We request that you please do not submit a bill until you can
cover the payment.Q: Can I submit a bill for a medical expense incurred prior to my enrollment in the plan?
A: No. Only medical expenses incurred during enrollment in the plan may be reimbursed.
Q: Can I submit a bill to be paid directly from the Account to the medical provider?
A: No. Chancellor will reimburse the employee only. No payments will be made directly to the
medical provider.Q: Is this plan for the whole family? Extended family?
A: The plan applies to the participant and anyone claimed as a dependent on the participant's
federal tax return.Q: What are the costs to the participant for enrollment in the plan?
A: There are no administrative costs to the participants in the plan.
Q:Can a claim dated in 1998 be paid in 1999?
A: Yes, up until March 31st of 1999, at which time the 1998 plan year officially closes. However, that claim from
1998 must be reimbursed with 1998 plan money, not money put toward the plan in 1999.Q:Can a claim be broken up with half of it reimbursed in 1998 and half of it reimbursed in 1999?
A: No. A claim from 1998 must be reimbursed with 1998 plan money. One may be reimbursed for a 1998 claim
with 1998 plan money through March 31st of 1999.
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