IBIS 105 AND 125 ADVANTAGE PLANSPresented by:

Jolene Mennenga, AVP

105/125 Administrator

Storage for:Plan Documents/Summary Plan Descriptions

Amendments

Data Gathering Forms

125 Restatement of Plan

Business Associate Agreements

Third Party Administrative Agreements

New Document Binders

Year End Prep for 2012 Plans

Watch for bulletin announcements concerning: Deadline for Data Gathering form Employee Communication Open Enrollment Final numbers for 2012 plan year

enrollment

2011 Year End Timeline

Sept. 26th DGF bulletin

October 14th Deadline to complete the DGF

October 16th OPEN online flex enrollment

December 19th CLOSE online flex enrollment

December 31st LAST paper elections accepted

2011 Year End Timeline

December Reminders:

Have employees check elections online

Have HR check elections with payroll/accuracy

Have HR remind employees to enroll

125 Reminders:

As of 01-01-11, prescriptions required for OTC item reimbursement (HCR)

2013 MedFSA will have a cap of $2500 per participant (HCR)

Manual claim submission deadline is Wednesday 10:00AM

Last claim incur date is December 31st for plans without grace period (March 15th w/grace)

Last claim submission date is March 31st for plans without grace period (June 15th w/grace)

30 days for change of status due to qualifying events

125 Pre-Tax Reminders

Remember: when you pre-tax premium, you not only follow the rules of the insurance carrier but also the rules of the 125 plan.

Must have a qualifying event to drop coverage

Must have a qualifying event to change premium

Must have a qualifying event to add coverage pretax in the middle of the plan year

Refer to Section XII of plan document for information

Plan Document and SPD

Make sure the participants have a copy of the SPD or communicate one is available to them

When plan changes are made – update the 125 Restatement of Plan and give to participants

Reference Plan Document – Section XII for Qualifying Events – Change of Status

Top 10 Reasons to Implement an FSA FSA’s save Employers

money (FICA/FUTA) FSA’s save

Employees money (Fed/State/FICA)

FSA’s have a flexible plan design/benefits

Use-it-or-lose it rule often helps employers

Uniform coverage rule helps employees with unexpected costs

FSA’s help with out of pocket costs and high cost expenses such as ortho/vision

Health FSA’s not always subject to COBRA

FSA’s can cover adult children

Allows submission of OTC expenses with a script

Tax savings on Dependent care is immediate

COBRA for 105 and 125 Plans For 105 Plans

Must offer same plan as when employed

Employer may charge the market value of the benefit received – meaning the premium of the employees “buy-down” plan plus 2%

For 125 Plans Offered for:

premium plans MedFSA benefit LFSA Benefit

Offered only to MedFSA and LFSA when there is a positive balance in account at termination

Must NOT offer if there is a negative balance in flex account

Do not offer on DCAP

Important 105 Information

CMS Section 111 Filing for 105 Plans

IBIS is completing on your behalf

Information communicated to Employer as needed

Employer needs to respond in a timely manner when requested

Important 105 Information

105 Plan w/$250-750 Deductible “Buy Down”

IBBP is no longer offering the $250/750 Deductible

IBIS will price $250/750 deductible plan for 2 years (2012, 2013) for the COBRA pricing and the W-2 reporting for those who need it.

HSA Reminders:

1. Contributions made by Employers must be made equitably for all eligible HSA Participants

2. Contributions made by Employees on a pre-tax basis can be changed mid-year without an event, unlike flex

3. Dependent definition for reimbursement from the HSA is still the “IRS” definition of a qualifying tax dependent, it did not change to the new age 26 definition

4. Follow guidelines for “Eligible Participant” when allowing employees to move to the HDHP/HSA plans & contribute

5. 2012 Max Contribution Limits Single $3,100 Family $6,250

ONLINE Resources:

Employer:

Resource Manuals Weekly activity reports Annual enrollment reports Access to Plan Documents Access to Forms/PowerPoints/Brochures Medical Flex Spending Account Expense

Table

ONLINE Resources:

Employee: Account balances EOB history Medical Flex Spending Account Expense

Table Online flex enrollment Access to Forms/PowerPoints/Brochures

Contact Information:

Email address for Claim or Plan Questions: flexadmin@bankers-ins.com

Fax number for Claim Submission515-286-4244

105/125 Customer Service number1-800-258-1415 (select 2, then 3 for flexbenefit specialist)