Benefit News – September 2003

Note: This announcement contains only a general description of some of the features of the University's Benefit Plans. The exact details of the plans are included in the legal plan documents that govern each plan. If there is any discrepancy between this announcement and the plan documents, the plan documents will govern.

GREAT NEW$ FOR THOSE PARTICIPATING IN THE HEALTH CARE FLEXIBLE SPENDING ACCOUNT PLAN!

On September 3, 2003, the IRS issued a ruling stating that expenses for over-the-counter medications purchased for "medical care" are eligible for reimbursement through health care flexible spending accounts (Health FSAs). Before this ruling, only medications purchased with a doctor's prescription were thought to be eligible for reimbursement.

If you are a participant in the University's Health FSA plan, you may obtain reimbursement for over-the-counter medications purchased after July 1, 2003. To be eligible for reimbursement, the medications must be used to cure, mitigate, treat, or prevent illness or disease.

Examples of medications that are newly eligible include the following:

• Pain relievers
• Antacids
• Allergy and cold medications
• Nicotine patches and gum

Expenses for items used to maintain general health are not eligible for reimbursement. Examples of over-the-counter drugs not eligible include the following:

• Dietary supplements
• Vitamins
• Cosmetics
• Toiletries

To obtain reimbursement, you will need to prepare a written request for reimbursement and submit it with your cash register receipt to Wells Fargo. Unfortunately, you will not be able to use your Benny MasterCard to purchase these items. FSA reimbursement request forms are available in the Benefits Department or on the internet at www.hr.utah.edu/ben/forms.

If you are not currently participating in the University's FSA Plan, consider becoming a participant in 2004. The next plan year begins July 1, 2004. Enrollment forms and information will be included in your annual open enrollment packet that will arrive at your home in April.

Coordination of Prescription Drug Benefits - For employees enrolled in the University Health Care Plan, coordination of prescription drug benefits to 100% of the cost is available only between two University health plans when both husband and wife work for the University and both carry health care coverage. The secondary benefit is available for Indemnity, ValueCare Basic, and ValueCare Preferred plan members when you file a claim with AdvancePCS. UUHP members will continue to file your claims with UUHP. (Coordination of benefits for prescription drugs is not available for those enrolled in the retiree health care plan.) For claim forms, contact the Benefits Department or you can obtain instructions and forms under Coordination of Prescription Drug Benefits on the Benefits Department's form web site at www.hr.utah.edu/ben/forms. Full coordination of benefits for prescription drug expenses is not available for members who have primary coverage provided by another employer's group insurance plan.

Status Change Events
If you experience a special status change event during the Plan Year, such as marriage, divorce, or the birth or placement of a child for adoption, you may be able to make enrollment changes to your health care plan and flexible spending account elections. You must make all changes within three months following the date of the event; otherwise, you cannot make any changes until the next annual open enrollment. Contact the Benefits Department for information.

If your status change event results in discontinuation of health care coverage for a family member who no longer qualifies as a dependent (such as divorce or a child marrying or reaching age 26), you must complete a Health Care Coverage Change Form and submit it to the Benefits Department within three months of the date the dependent no longer qualifies. (However, in order for the dependent to be eligible to continue coverage under COBRA, the Change Form must be submitted within 60 days of the status change event. If you wait the full 3 months to notify the Benefits Department, the dependent will not be eligible to continue coverage under COBRA.) Any change in your contribution will occur on the first paycheck after the date you notify the Benefits Department that your dependent is no longer eligible. The Benefits Department cannot make refunds, even if your dependent was ineligible for coverage during earlier payroll periods. To avoid extra expense, contact the Benefits Department at 581-7447 or complete and submit the Health Care Coverage Change Form as soon as a dependent no longer qualifies for coverage!