Page 15 - 2018 MDT Benefits & Notices

Member Driven Technologies (MDT) 2018

Flexible Spending Accounts (FSA)

Flexible Spending Accounts let you pay for health care and day care
expenses with tax-free dollars. How much you save depends on
how much you pay in income tax. There are two types of accounts
under this plan: a Health Care Reimbursement Account (HCRA)
and a Dependent Care Reimbursement Account (DCRA). You may
enroll in one or both. ADP administers this plan for MDT. THE
PLAN YEAR FOR THE FSA RUNS FROM 01/01 TO 12/31.

With an HCRA or DCRA, you decide before the start of the year how
much to contribute to each account. Your contributions are withheld
in equal amounts from your paychecks throughout the year. The
money is set aside separate in tax-free accounts. Claim the money
in your account(s) by submitting a claim form for reimbursement.
Claims for the HCRA may be made by utilizing your FSA Debit Card
instead of submitting a claim form.

Without an HCRA or
How the Accounts Save You Money With an HCRA or DCRA
DCHA
Gross Salary $25,000 $25,000
LESS: Annual Amount Deposited into HCRA / DCRA $0 ($2,000)
Taxable Income $25,000 $23,000
LESS: Annual Taxes (assumed at 25%) ($6,250) ($5,750)
Net Salary $18,750 $17,250
LESS: Out-of-Pocket Medical and/or ($2,000) N/A
Dependent Care Expenses for the Year
Disposable Income $16,750 $17,250
Your Tax Savings NONE $500

HCRA

• The HCRA helps you pay for medical, dental, and vision expenses that aren’t covered by insurance.
Your annual election cannot be more than $2,500 for the 2017 plan year pursuant to Health
Care Reform. The full amount will be available January 1, 2017. For a complete list of eligible
expenses visit the IRS website at www.irs.treas.gov/pub/irs-pdf/p502.pdf.

• Over-the-counter (OTC) drugs and medications, such as those listed below, are not eligible for tax-
free reimbursement UNLESS you have a doctor’s written directive (prescription) for the item:

 Acid controllers  Anti-Inch/Insect /Bite  Digestive aids  Pain relief
 Allergy and sinus  Antiparasitic treatments  Feminine anti-fungal/itch  Respiratory products
 Antibiotic products  Baby rash ointments  Hemorrhoid preparations  Sleep aids/sedatives
 Anti-diarrheals  Cold sore remedies  Laxatives  Stomach remedies
 Anti-gas  Cough, cold and flu  Motion sickness

• To file a claim for an OTC, get an itemized receipt that shows items purchased, the date purchased
and how much it cost, and send it with a completed claim form and the doctor’s script for the item(s)
listed above. These items cannot be paid with your FSA Debit Card.

• Health supplies such as adult incontinence products, pregnancy tests, contact lens solutions and
supplies, diabetic testing supplies, and first aid supplies are eligible for reimbursement without a
prescription.

Salus Group © Copyright 2017 Page | 15