The NCFlex Program will mail information around mid-May to participants in the Health Care Spending Account and the Dependent Day Care Flexible Spending Account about a new convenience card that will be offered effective July 1, 2004.  At this point, I have limited information about the program, but I did want to alert you about it so you can watch for the information in the mail.

 

 As I learn more, I will keep you informed via email and will schedule information sessions as warranted.  I have summarized below what I know about the program at this time.  I realize the summary is long BUT if you think you are interested in the debit card, the information provided is VERY important!!

 

Please watch for the information in the mail and send your enrollment form directly to the address indicated in the materials.  Feel free to contact me if you have questions.

 

 NEW NCFLEX CONVENIENCE CARD STARTING JULY 1, 2004

 

The NCFlex Program is offering a new “debit” card that can be used effective July 1, 2004.  Current participants in the Health Care Flexible Spending Account and/or the Dependent Day Care Flexible Spending Account have the option of participating. The cost of the card for the remainder of 2004 will be $3 and the cost can be deducted from your Flexible Spending Account.  If you wish to obtain a card for your dependents, there will be a, one time, $5 charge per card.

 

The program will be continued for the 2005 Flexible Spending Account plan year and the cost will be $6 per plan year.  The debit card can be used for items eligible for reimbursement from the health care and/or dependent day care flexible spending accounts.

 

The debit card has a number of attractive features and can be used at most pharmacies, medical providers, and dependent care providers who accept VISA.   Participants can “draw down” money from their account and avoid some (but not all) of the paperwork currently required for reimbursement.  For example, if an amount is recognized as a valid co-pay, such as the $10, $25, $35 or $40 co-pay for prescription drugs, the claim will be automatically adjudicated and no additional paperwork will be required.   However, if the amount does not match a valid co-pay, the amount would be deducted from your account and you would have to complete a claim form and provide receipts to substantiate that the purchase was a valid purchase.

 

It is also noted that you could inadvertently draw down money for ineligible items and end up being required to repay your Flexible Spending Account.  For example, if you use you card at the drug store and purchase ineligible items (such as deodorant, hair spray, etc.) along with your prescriptions, the card will deduct the entire purchase.  When you submit your receipt it would be determined that some of the items were ineligible and you would be required to repay your account for the ineligible items.  This can easily be avoided by paying for your ineligible items separately and using the debit card only for purchases that you are certain are “qualified” purchases.   For these reasons, it is recommended that you not use the debit card unless you are willing to become familiar with recommended uses and how to avoid possible problems with its use.

 

The NCFlex Program will mail information in mid-May to participants in the Health Care Spending Account and the Dependent Day Care Flexible Spending Account.  In order to have your card and be able to use it beginning July 1 you must return your enrollment form by June 4, 2004.  If you do not enroll for July 1, you will be eligible to enroll later for the 2005 flexible spending account year. 

 

Please review the materials carefully and return the enrollment form by June 4, 2004 if you wish to try the “Convenience Card.”  Again, the card has a lot of attractive features but there are possible negatives if it is not used properly.  Please think carefully about how you would use the card.  If you are willing to invest a little time to learn how to use it properly, it can be a great benefit, reduce paperwork and eliminate your having to wait for reimbursement of your funds.  Feel free to contact me with any questions.

 

 

 

Lisa Honeycutt, Employment and Benefits Manager

UNC Asheville

Department of Human Resources & Affirmative Action

lhoneycutt@unca.edu