Benefits - Health Care Reimbursement Account
Chancellor & Chancellor, Inc. offers the Section 125 benefits. Health Care Reimbursement Account, which enables contractors to put aside pre-tax money to be used for various medical expenses. The contractor simply decides how much money he/she would like to have taken out for health purposes for the year or portion thereof. This amount must be $3,000.00 or less for an entire calendar year. If a contractor is working only a portion of the year, this maximum amount to be deducted will be pro-rated. For example, those wishing to take advantage of this benefit starting August 1st may set aside a maximum amount of $1250.00. The appropriate amount will then be deducted pre-tax from the contractor's paycheck every payroll period.
If at the end of the plan year (December 31) there are monies left in your account, they will be forfeited. This is known as the "use it or lose it" rule. However, you will have 90 days from the end of the plan year to submit claims for expenses incurred during the period of your plan participation before any forfeitures occur.
To assist you in estimating your annual medical costs, we have provided a Medical Expense Reimbursement Worksheet
Chancellor & Chancellor, Inc. reimburses the contractor for any qualifying medical expense incurred for which he/she wishes to apply this money. Reimbursements shall not exceed one's contributions. These expenses must fit those listed as qualifying expenses under the guidelines of the Health Care Reimbursement Account. This means those expenses incurred by you, your spouse, all dependents you list on your federal tax return, and any person you could have listed as a dependent on your return if that person had not received $2,450.00 or more of gross income or had not filed a joint return. This amount is adjusted each year for cost of living.
Eligible employees and their eligible dependents, who did not enroll when initially eligible, may only enroll during the Open Enrollment Period. The Annual Open Enrollment Period is the month of December and coverage will be effective January 1st.
The following is a list of expenses for which one can be reimbursed:
Medical and dental plan deductibles and co-payments
Prescription drug co-payments
Eye exams, eyeglasses, contact lenses, and other vision expenses
Hearing exams, hearing aids, and other hearing expenses
Cosmetic surgery or other similar procedures - (Only if the surgery or procedure is necessary to correct a deformity arising from, or directly related to, a congenital abnormality, a personal injury resulting from an accident or trauma, or disfiguring disease)
Payments to a treatment center for substance abuse
Special equipment installed in cars for the disabled
Chiropractics
Acupuncture
Psychotherapy
Cost of maintaining guide dogs
Medical care in a qualifying nursing home
The cost of equipment that displays the audio part of television programs as subtitles for the deaf
Ambulance service and other travel costs to get medical careThe following is a list of expenses for which one cannot be reimbursed:
Health insurance premiums
Cosmetic surgery or other similar procedures - (Except as permitted above)
The salary expense of a nurse to care for a healthy newborn at home
Funeral and burial expenses
Household and domestic help - Even if recommended by a qualified physician due to an employee's or dependent's inability to perform physical housework
Custodial care
Costs for sending a problem child to a special school for benefits the child may receive from the course of study and disciplinary methods
Health club dues
Social activities, such as dance lessons - Even if recommended by a qualified physician
Bottled water
Maternity clothes
Diaper service or diapers
Cosmetics, toiletries, toothpaste, etc.
Vitamins taken for general health purposes
Uniforms
Automobile insurance premiums
Transportation to and from work - Even if a physical condition requires special means of transportationIRS Publication 502, Medical and Dental Expenses, has a checklist of medical expenses that can be deducted and therefore reimbursed under this plan, and those that cannot.
No bills for expenses incurred may be submitted until the accrued amount for the Health Care Reimbursement Account matches the claims. Bills must total at least $50.00 before being submitted to the Health Care Reimbursement Account. Bills must be submitted by the 20th of the month in order to be paid by the first of the following month. If submitted after the 20th of the month, the bills will be paid on the first of the next month.
The Health Care Reimbursement Account is one of the benefits offered under Chancellor & Chancellor's Section 125 Plan.
To enroll, simply fill out the Section 125 Enrollment Form: Enrollment FormTo submit a claim, simply fill out the Medical Care Expense Claim Form
Please send any additional questions or comments regarding this new benefit to patricia(at)chancellor(dot)com and we will be glad to help.
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