Conference 7.286::digital

	... your health-care (or child-care) reimbursement account balance
by the end of the year (calendar, I thought?), it was gone, period.  That's
the one reason I didn't use it.  Now, opting out is another story, but if
you haven't already, go back and read the enrollment form REAL close. If
it DOESN'T say specifically what happens to money in an account after con-
tributions stop, you may have a case.

	Good Luck!

It was made very clear during enrollment that at the end of the year, 
it's use it or loose it.

However, they also said that you can stop contributing at any time 
and use up the credit.  Our PSA agrees with this. 

Upon  elevating the issue, Personnel has retracted the above and
points out in the benefits handbook page 5.18:


    "You will be able to submit claims for eligible health care
     expenses that you incurred during the benefit period and prior
     to the date you terminate, retire or stop your participation."
 

	

>Upon  elevating the issue, Personnel has retracted the above and
>points out in the benefits handbook page 5.18:
>
>    "You will be able to submit claims for eligible health care
>     expenses that you incurred during the benefit period and prior
>     to the date you terminate, retire or stop your participation."
 
I got my copy of the benefits handbook many months after the enrollment
deadline last winter.  I don't believe that this statement is printed
in any materials we received before the last enrollment deadline.
It is a misinterpretation of "benefit period" on our part, I guess.
I interpreted it to be Jan 1 - Dec 31, but it should have been further
qualified by "but only until you stop your participation".
    

So who gets leftover money in a reimbursement account?

Can you contribute $1/week to minimize the amount you put in and at the same
time, allow you to use what you already paid in to pay claims, or is this one
of those once-you-start,no-changes,only-stops-allowed processes?

Bob

    I don't believe that it is possible to change your contribution once it
    has started, other than to stop it. 
    
    Once place left over contributions may go is to cover the people who sign
    up, get reimbursed for expenses that exceed their current contribution
    but are less than what their year end contribution will be, then cancel
    their contribution.  This is perfectly legal (though far from ethical).
    
                                August G. Reinig

re .6:
    
>    Once place left over contributions may go is to cover the people who sign
>    up, get reimbursed for expenses that exceed their current contribution
>    but are less than what their year end contribution will be, then cancel
>    their contribution.  This is perfectly legal (though far from ethical).

    This doesn't sound right.  It's a loophole you could drive a truck through.
    Where did you get this information?  I believe you'd have to pay it back.

    When the HCRA plan was announced, I tried to get the exact details of
    what would happen if I cancelled out of HCR early - I thought that I
    could overestimate my needs, then cancel at an time when I could better
    estimate my needs.  
    
    The personel people that I spoke to could not find anything in writing
    to confirm this (that I could submit expenses incurred after the
    cancellation date), but I think they understood what I was saying, and
    they gave me the impression it was OK.  I wanted it in writing, but
    that was not to be found.  I chose my contribution partly based on this
    (maybe tempered by not having it in writing).
    
    When the benefits handbook came out, it was clear that if you chose to
    stop participation, you could not submit bills for expenses incurred
    after the stop date.
    
    I was disappointed, but (1) I hadn't taken it far enough on my initial
    research to get it in writing (and my memory of what was said is
    inexact), and (2) for good or bad, my family's medical expenses this
    year have been in advance of my HCRA contributions.  So I'm not
    impacted by a decision I made on inadequately researched, faulty info.
    
    What you can take from this note:
       - a little sympathy - the full info was not readily available
       - another example of "Get it in writing" and/or "research your
           decisions thoroughly"
    
    \chuck benz

    I attended one of the meetings on our new health care benefits.  At
    that meeting people asked if you had big expenses in January could you
    get them paid for immediately or would you have to wait until you had
    contributed enough to cover the expenses.  The answer was that you can
    get the money immediately.
    
    Someone then asked what would happen if you then stopped your
    contributions.  No doubt the questioner was considering the situation
    where someone might leave DEC, either voluntarily or through some other
    means.  The answer was that IRS rules prevented DEC from trying to
    recover the money.  If this provision of the rules was abused, the
    program would be dropped.  
    
    I do know from experience that you can get reimbursement in advance of
    your contributions.  I don't know from experience what would happen if
    I were to stop my contributions now and don't intend to find out.  I do
    know that the question was asked and I too was struck by what appeared
    to be a very large loop hole.
    
                                    August G. Reinig

>            The answer was that IRS rules prevented DEC from trying to
>    recover the money.  If this provision of the rules was abused, the
>    program would be dropped.  

Well, enjoy your HCRA while you can.  Or am I being too cynical?

A decision has been made by personnel to change the policy.  You
can now submit bills up to 12/31 even if  you end your deductions 
prior to 12/31.

Gim

I thought the IRS made the rules.  How can personnel change them?