1. Healthcare Spending Accounts Use it or lose it! 11

2. What is a Healthcare Spending Account? Per the IRS, guidelines are: Pre-tax savings account to pay for medical expenses (pre-federal, state, SS & Medicare taxes) Date of service determines which years account will be charged Strict list of items eligible for reimbursement Use it or Lose it! 2

3. How much may I contribute? CMH allows: Between $100 and $5000 Withholding is based on # of paychecks remaining in the year (24 max) You may start, stop or change only At hire During Open Enrollment If you have a Qualifying Event 3

4. What expenses qualify for an HCSA? Established by the IRS Acupuncture Alcoholism treatment program Ambulance Artificial limbs Artificial teeth Birth control pills Braille books/magazines (extra cost) Car modification for disability Childbirth classes (mother) Chiropractic care Christian Science practitioners Co-insurance charges Contact lenses/supplies Crutches Deductibles and co-pays Dental treatment Eyeglasses Hearing aids and batteries Hospital Fees Laboratory fees Laser eye surgery Massage therapy (within limits) Medical services by a licenses provider Mileage ($.19/mile in 2011) Nursing home charges Operations Optometry Optical care Organ transplants Orthodontics Osteopathic treatment Oxygen Physical exams Prescription drug co-pays Prescription vitamins (treating a deficiency) Prosthesis Psychiatric care Radial Keratotomy Sterilizations Xrays 4

5. Are there some over-the-counter items that qualify? Yes, but only with a prescription by your doctor as being medically necessary Allergy Medicine Antacids Anti-diarrhea medicine Bandages Cold medicine Cold/hot packs for injuries Condoms Cough drops Eye drops First aid kits Gauze pads Hemorrhoid medications Incontinence supplies Laxatives Motion-sickness medications Nasal spray Nicotine gum or patches Ointments for muscle pain Ointments for first aid Pain relief medications Pre-natal vitamins Pregnancy test kits Reading glasses Rubbing alcohol Sinus Medicine Suppositories Thermometer 5

6. How do I get money from the account? You have three primary ways to collect money from the Healthcare Spending Account: 1. Benny card 2. Automatic reimbursement 3. Submit by mail or fax The next three slides will explain each 6

7. How does a Benny Card work? A Benny Card has these features: Looks like a credit card Works like a debit card (declining balance) Your full annual balance is loaded onto the card Rather than paying a co-pay ($20, $40, $50, etc), you can have that payment come straight out of your Spending Account via the Benny Card Save all healthcare receipts (even when using the Benny Card)

8. How does Automatic Reimbursement work? You must use UMR for your medical and/or dental ins. for Automatic Reimbursement to work At the time of generating a co-pay (doctors office, pharmacy, emergency department), you would make your payment to them at that time When UMR processes the claim, they will electronically notify the Healthcare Spending Account department to issue you a check to refund you for each co-pay

9. How do I submit Healthcare Spending Account expenses for reimbursement? Shoebox method: Referring to the practice of saving all eligible receipts during the year and submitting for reimbursement. You may submit for reimbursement once a year or as often as you wish. Claim forms are in the Forms & Documents tab of www.cmmfhealthydecisions.comwww.cmmfhealthydecisions.com

10. What dates affect my reimbursements? You have until next March 31 st to submit this years receipts The date of service, date of treatment and date of purchase will determine which year to claim is applied to. For example, paying for eyeglasses on December 31 st will count as current year while paying on January 2 nd for eyeglasses will count toward the new year. Do NOT use the Benny Card in January for the previous years claims