Flexible Reimbursement Accounts
Full-time faculty members and staff who are eligible for the Emerson College group health and dental plans may also establish IRS Section 125 Flexible Reimbursement Accounts. This benefit allows employees to set aside a specific dollar amount each calendar year, on a pre-tax basis, to pay for expenses not covered by the College’s group benefit plans. The College contracts with Crosby Benefit Systems to assist with administration and payment of claims.
These reimbursement accounts provide tax savings, but it is important to estimate your annual election amount carefully, since IRS regulations stipulate that these are “use it or lose it” accounts.
Medical Reimbursement Accounts
Effective January 1, 2015, eligible employees can set aside up to $2,550 per calendar year (minimum of $120/year) in a Medical Reimbursement Account to cover eligible out-of-pocket medical and dental expenses for themselves and their eligible dependents. Qualifying expenses include costs for out-of-pocket costs for your medical and dental care, such as co-pays and deductibles; expenses not covered by the health or dental plans; vision care expenses; and prescription drugs.
To be reimbursable, you must incur eligible expenses in Medical Reimbursement accounts between January 1 and March 15 of the following year (2 ½ month grace period). You will forfeit any funds not incurred within these time frames. The College cannot refund or carry forward any unspent funds.
Participants in the Medical Reimbursement Accounts may pay many out-of-pocket expenses (doctor visits, prescription co-pays, mail order prescriptions, eyeglasses, etc.) at the point of sale by using their Flex Debit Card. The card is pre-programmed for your annual election amount and pre-approved for vendors such as doctors, prescriptions, etc.
Some expenses may require substantiation, so it is important that participants save all receipts. Paper claims may also be filed for reimbursement of eligible expenses. Reimbursement is made by check or by direct deposit.
Dependent Reimbusement Accounts
Eligible employees may set aside up to $5,000 per year in a Dependent Care Reimbursement Account to pay for eligible dependent care expenses. To be reimbursable, you must incur eligible expenses between January 1 and December 31 of each year (no grace period). As with the Medical Reimbursement Accounts, you will forfeit any unspent funds at the end of each year.
If an employee terminates his/her employment with the College, only services rendered prior to the employee's last day may be eligible for reimbursement under the reimbursement plans. Any unused money will be forfeited.