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FSA enrollment open through Dec. 15

1:29 p.m., Nov. 20, 2006--The enrollment period for 2007 Flexible Spending Accounts (FSAs) begins today and ends Friday, Dec. 15, for eligible UD employees.

FSAs are voluntary accounts through which employees can set aside pretax dollars to cover out-of-pocket health-care and day-care expenses. Visit the Office of Human Resources web site at [www.udel.edu/Benefits/flex/flexspend.html] for more information about FSAs.

The maximum annual amount employees can contribute remains at $3,000 per employee for the Health Care Account and $5,000 per family for the Dependent Day Care Account. Enroll in a Health Care Account and/or Dependent Day Care Account by clicking on the link to the FSA Enrollment Form at [www.udel.edu/flexnet].

For the 2007 plan year, there is a change to the FSA plan that should afford participants more flexibility when filing claims at the end of the year. Changes in Internal Revenue Service regulations permit the University to adopt a 2 1/2-month grace period (through March 15, 2008) for participants to incur expenses that may be reimbursed from contributions made in the preceding year (2007). This revision provides additional time to take advantage of FSA contributions before the amounts are forfeited under the "use-it-or-lose-it" rule.

Keep these facts in mind when deciding how much to set aside in an FSA:

• FSAs do not automatically continue from year to year. You must re-enroll each year to continue your participation;
• The enrollment period for the University's medical, dental, life and disability benefits is scheduled for May 7-25. If you anticipate changing your medical plan coverage, consider how that future change may affect your current decision on "how much" to contribute to a 2007 Health Care FSA;
• Jan. 1 each year is the date when the prescription drug formulary is revised. The list includes both generic and brand-name drugs. Medications added to the formulary are available with lower copayments than nonformulary drugs; medications removed from the formulary are still available, but at higher copayments. Please keep in mind how these changes may affect out-of-pocket costs for prescription drugs in the coming year. The formulary for 2007, in abbreviated form, can be downloaded in PDF format from the Office of Human Resources web site at [www.udel.edu/hr/];
• FSAs are effective tools for saving taxes on out-of-pocket health-care and day-care expenses. However, it is important that to be somewhat conservative when choosing the amount of your FSA contribution; you will lose any balance not used during the plan year and subsequent grace period; and
• The plan year for FSAs is January through December. Once your enrollment is finalized, you cannot change or stop your contribution for the remainder of the calendar year unless you have a qualified family status change (e.g., marriage, divorce, birth/adoption of a child).

Over-the-counter drugs and medicines are also eligible for reimbursement through health care FSA accounts. Eligible nonprescription medications include: antacids, allergy medicines, pain relievers and cold medicines. Dietary supplements (e.g., vitamins), toiletries and cosmetics are not eligible for reimbursement.

For more information, call the Office of Human Resources at (302) 831-2171 or e-mail [ben-serv@udel.edu].

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