From: Warren Dent [mailto:jwdent1@gmail.com]
Sent: Saturday, October 04, 2008 8:16 AM
To: All Local Chairmen
Subject: Flexible Spending Account Information
Brothers,
You have all seen the messages from the GCA and ND offices about the upcoming annual enrollment for the Flexible Spending Account plan option. Those messages have emphasized the necessity of our increasing the number of active participants in order to protect and preserve this valuable option. We have to have a minimum 5% of the membership participating in the plan or it is lost after December 2009. Current enrollment is below the 5% threshold. I am of the opinion that the reason for this is that most of our membership is in the dark about what the plan is or how they can benefit from it. I must admit that, until recently, I counted myself in that group.
Depending on an individual’s medical circumstances and number of dependents, some Brothers/Sisters have more to gain than others, but the truth is that everyone can derive a benefit from this plan. The minimum contribution is $120 per year but you can earmark up to $3600 annually for medical expenses. The designated annual contribution amount is evenly deducted via payroll throughout the year. The monies contributed are not subject to Federal Income Tax. Therefore, a minimum $120 annual contribution from one in a 25%-33% tax bracket, would net the individual a $30-$40 tax savings on monies he/she was going to spend anyway. Deductibles and co-pays for Doctors, Dentists, Optometrists and Specialists qualify for reimbursement under the plan as do prescription medications and some common over the counter meds. For your info, I have attached some information about over the counter medications that qualify for reimbursement.
Click Here for UHC OTC info
In addition to the medical plan there is also another plan covering dependent care costs, with a maximum annual contribution limit of $5000. While this option might impact a smaller percentage of the membership, for those who qualify, it can be a vitally important benefit.
Understand that contributed monies that go unused over the 12 month period are lost, so I am encouraging those electing to avail themselves of this opportunity to be wise when determining their contribution amount. Even with that in mind, it is easy to see where virtually every member, even if enrolled for only the plan minimum of $120 per year, stands to gain from participation in this plan.
I understand that United Healthcare will be mailing the FSA registration packet to each member sometime next week and we will have about 30 days to respond. I urge each of you to consider whether the plan is right for you. Even if you chose not to participate, I’m asking each of you to spread the word to your membership about the plan and its’ benefits so that they understand what it is about and have an opportunity to make an educated decision concerning their participation. I would hate to see us lose this valuable opportunity and agreement right due to a participation shortfall that was based on lack of knowledge and/or understanding. I just ask that you give it some thought and encourage all those Brothers/Sisters that you influence, or come in contact with, to do the same.
You can view informational articles about the Flexible Spending Account plan on the ND website at www.ble-t.org. If you have any questions, feel free to contact me and I will do my best to get them answered.
Fraternally yours,
Warren Dent
