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Kaiser Permanente Health Reimbursement Account For Eligible Kaiser Permanente Employees Northern California Region November 2009

For Eligible Kaiser Permanente Employees Northern California Region November 2009

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For Eligible Kaiser Permanente Employees Northern California Region November 2009. Overview. Effective January 1, 2010 Health Reimbursement Account (HRA) Offered to eligible employees represented by Labor Management Partnership (LMP) Unions Tax-free reimbursement for: - PowerPoint PPT Presentation

Text of For Eligible Kaiser Permanente Employees Northern California Region November 2009

Page 1: For Eligible  Kaiser Permanente Employees  Northern California Region November 2009

Kaiser Permanente Health Reimbursement Account

For Eligible

Kaiser Permanente

Employees

Northern California Region

November 2009

Page 2: For Eligible  Kaiser Permanente Employees  Northern California Region November 2009

Overview

Effective January 1, 2010 Health Reimbursement Account (HRA) Offered to eligible employees represented by Labor Management

Partnership (LMP) Unions Tax-free reimbursement for:

out-of-pocket eligible medical, dental, and vision care expenses.

HRA account funded with 80% of value of unused sick leave as of termination date

An account will be opened automatically when eligible No action required

Retiree medical eligibility, medical plan and benefit levels are not affected by the HRA

Page 3: For Eligible  Kaiser Permanente Employees  Northern California Region November 2009

Regions Affected

Colorado Georgia Mid-Atlantic States Northern California Northwest Ohio Southern California

Page 4: For Eligible  Kaiser Permanente Employees  Northern California Region November 2009

Eligible Groups - NCal

Engineers and Scientists of California, Local 20, IFPTE, Clinical Laboratory Scientists

Engineers and Scientists of California, Local 20, IFPTE, Optometrists

Office and Professional Employees International Union, Local 29, AFL-CIO

United Healthcare Workers—West United Healthcare Workers-West, Dietitians United Healthcare Workers—West, Integrated Behavioral

Health Services

Page 5: For Eligible  Kaiser Permanente Employees  Northern California Region November 2009

Eligible Groups – NCal (Cont’d)

United Healthcare Workers—West, Health Educators

United Healthcare Workers-West, Post Acute Care Center

United Healthcare Workers—West, Medical Social Workers

United Healthcare Workers—West, Optical Workers

The Guild for Professional Pharmacists

Page 6: For Eligible  Kaiser Permanente Employees  Northern California Region November 2009

What is the HRA?

What is a Health Reimbursement Account? The HRA, also referred to as a Health

Reimbursement Arrangement, allows retirees and their eligible dependents to pay for out-of-pocket qualified medical, dental, vision, and hearing care expenses, as well as premiums paid to a Kaiser Permanente medical plan, on a tax-free basis.

Page 7: For Eligible  Kaiser Permanente Employees  Northern California Region November 2009

Eligibility

Eligibility requirements at termination of

employment: At least age 55 15 or more years of Service

as defined under the KP-sponsored defined benefit

plan, or the pension plan under the union trust, as applicable

HRA eligibility is independent of retirement eligibility Age and years of Service requirement waived for Disability

Retirement

Page 8: For Eligible  Kaiser Permanente Employees  Northern California Region November 2009

Eligibility (cont’d)

Eligibility requirements at termination of employment

(cont’d): eligible for KP medical coverage on last day of

employment enrollment in plan not required

must be in an employee group that participates in the HRA

ACP may participate

Page 9: For Eligible  Kaiser Permanente Employees  Northern California Region November 2009

Eligible Dependents

Legal spouse Unless divorced or legally separated Must be of the opposite sex to whom legally married under federal law

Domestic partner If they qualify as a dependent on employee’s federal income taxes May not use HRA account to pay expenses for the child of domestic

partner if domestic partner claims the child as a dependent on his or her tax return

Your unmarried dependent children under age 25 If divorced, children will be considered eligible under the plan if

employee is responsible for children’s support and have custody of children for more than half of the calendar year, per the IRC

Page 10: For Eligible  Kaiser Permanente Employees  Northern California Region November 2009

Eligible Expenses

IRS determines which expenses are eligible (qualified) for reimbursement

May not also claim the expense through your health care plan, insurance program, or income taxes

Consult a tax advisor for tax implications

Page 11: For Eligible  Kaiser Permanente Employees  Northern California Region November 2009

Eligible Expenses*

Acupuncture Chiropractic care Dental implants, supplies Dental insurance premiums and copayments Hearing exams and treatment Long-term care insurance premiums

*Sample list only, not a complete list

Page 12: For Eligible  Kaiser Permanente Employees  Northern California Region November 2009

Eligible Expenses (cont’d)

Medical insurance premiums paid for a Kaiser Permanente medical plan only*

Medical copayments Medicare premiums Premiums paid under COBRA (medical, dental) Substance Abuse Treatment Vaccinations Wheelchair

* Unless you live in an area where KP medical is not offered

Page 13: For Eligible  Kaiser Permanente Employees  Northern California Region November 2009

Ineligible Expenses*

Baldness treatments or hair transplants Dancing lessons Exercise equipment Herbal and holistic drugs or remedies Special diet foods Swimming lessons Vacation expenses (even if recommended by a doctor)

*Sample list only; not a complete list

Page 14: For Eligible  Kaiser Permanente Employees  Northern California Region November 2009

How the HRA is established

On termination or retirement: HRA-convertible sick leave hours converted at

80% of value Kaiser Permanente deposits into HRA No employee contributions allowed $100 minimum required to establish account

No cost for this new benefit

Automatic participation, if eligible

No opt-out option

Page 15: For Eligible  Kaiser Permanente Employees  Northern California Region November 2009

Enhanced Sick Leave Program

Banked Sick Leave (BSL) Unused hours accrued in 2006 and

thereafter converted at 80% of value Deposited into HRA

No Credited Service for post-2005 BSL hours

Page 16: For Eligible  Kaiser Permanente Employees  Northern California Region November 2009

Sick Leave Program (with Annual Refresh)

On an annual basis, up to 15 days of unused sick leave set aside on your behalf

Hours converted at 80% of value and deposited into your HRA

No Credited Service for HRA-convertible sick leave hours

Page 17: For Eligible  Kaiser Permanente Employees  Northern California Region November 2009

Extended Sick Leave (ESL)

Extended Sick Leave (ESL) Effective first pay period of 2010, two ESL banks

A current ESL bank A pre-2010 ESL bank

ESL hours beginning first pay period 2010 go into current ESL bank

Unused ESL hours last pay period 2009 used to establish pre-2010 ESL bank

Accrued, unused ESL in current ESL account converted at 80% of value and deposited into HRA

No Credited Service for unused post-2009 ESL hours

Page 18: For Eligible  Kaiser Permanente Employees  Northern California Region November 2009

When Your Account Opens

Welcome Kit from the HRSC Notification of Enrollment Letter from Ceridian Kaiser Permanente’s contribution to your HRA Quarterly Statements

Page 19: For Eligible  Kaiser Permanente Employees  Northern California Region November 2009

How to File for Reimbursement

Submit claims through Ceridian Fax: 1-866-717-3820 Mail:

Ceridian FSA ServicesP.O. Box 534200

St. Petersburg, FL 33747-4200 Reimbursement via check or direct deposit Check on the status of your claim or payment at

www.ceridian-benefits.com

Submitting claims is easy

Page 20: For Eligible  Kaiser Permanente Employees  Northern California Region November 2009

Claims Guidelines

Claims processed weekly No limit on number of claims No minimum/maximum dollar amount

Submit claims within 60 days Unused funds carry over from year to year

Page 21: For Eligible  Kaiser Permanente Employees  Northern California Region November 2009

Account Closes

HRA Account closes if: Account balance is $0 Account is abandoned Death, with no surviving eligible dependents Upon the death of surviving eligible dependents If during the termination or retirement process,

you are deemed ineligible for the HRA

Page 22: For Eligible  Kaiser Permanente Employees  Northern California Region November 2009

Account Suspended

Account suspended If you are rehired and return to work at

Kaiser Permanente in any capacity

Account Reactivated When you terminate again

No minimum balance required

Page 23: For Eligible  Kaiser Permanente Employees  Northern California Region November 2009

Customer Service

Ceridian Customer Service 1-866-370-2534

or Online at www.ceridian-benefits.com

Social Security number (with dashes) Initial password/PIN

(last 4 numbers of your SSN reversed)

Page 24: For Eligible  Kaiser Permanente Employees  Northern California Region November 2009

Contact Information

For HRA detailed questions, covered expenses and claims: Ceridian

Monday-Friday, 5 a.m.-5 p.m. Pacific Time 1-866-370-2534 www.ceridian-benefits.com

For HRA general questions: My HR Web site

http://insidekp.kp.org/myhr Human Resources Service Center (HRSC)

1-877-4KP-HRSC (1-877-457-4772)

Page 25: For Eligible  Kaiser Permanente Employees  Northern California Region November 2009

HRA Communications Timeline

Late November 2009 Customized communications sent to all impacted

employees Cover letter from region Brochure containing

Summary of Material Modification (SMM) Frequently Asked Questions (FAQ) Claims process

January 1, 2010 - HRA becomes effective

Page 26: For Eligible  Kaiser Permanente Employees  Northern California Region November 2009

Thank you!