July > Special ANNUAL ENROLLMENT Edition for UT System Employees > Be a Wise Healthcare Consumer
Be a Wise Healthcare Consumer
Like to save money? Enroll in UT FLEX!
Flexible spending accounts such as the UT FLEX* Health Care Reimbursement Account and the UT FLEX Dependent Day Care Reimbursement Account provide a tax-advantaged way to pay for certain out-of-pocket health care expenses and work-related day care expenses. Each account allows you to pay your expenses with “pre-tax” dollars, which means you get a tax deduction for these expenses before you ever file your tax return. You don’t pay federal income or Social Security taxes on this money.
UT FLEX Health Care Reimbursement Account (HCRA): As a benefits-eligible employee, you can participate in the UT FLEX HCRA and use your pre-tax dollars to pay for eligible health care expenses including:
- Deductibles, copayments, coinsurance
- Prescription drugs, insulin and syringes
- Dental exams, x-rays, fillings, crowns, orthodontia
- Eye exams, prescription eyeglasses and prescription sunglasses
- Contact lenses and cleaning solutions
- Hearing aids
Please note, with passage of the Affordable Care Act (Healthcare Reform), the upcoming 2011-2012 plan year will be your last opportunity to make a $5,000 UT FLEX HCRA election. Beginning September 1, 2012, the maximum UT FLEX HCRA election will be reduced to $2,500, per Federal guidelines.
Need Help Determining How Much to Elect?
Before you make your UT FLEX election(s), estimate your annual expenses not covered by insurance such as deductibles, copays, coinsurance, prescription drugs and other medical expenses. Go to UTFLEX.com and click on the Savings Calculator tab to help you itemize your health and dependent day care expenses. Review the itemized form and calculate your estimated increase in annual spendable income.
PayFlex Debit Card
Selecting the PayFlex Debit Card ($9 annual fee) with your UT FLEX HCRA election makes using UT FLEX easy and improves your cash flow. By using the PayFlex Debit Card, you do not have to complete a claim form, and purchases are automatically deducted from your available UT FLEX HCRA balance. Use the debit card to pay out-of-pocket costs such as deductibles, copayments and coinsurance.
UT FLEX Dependent Day Care Reimbursement Account (DCRA): If you have work-related dependent day care expenses for your children under age 13, pay for those expenses (up to $5,000 per calendar year), file an Express Claim online (or by fax or mail), and be reimbursed with tax-free dollars from your UT FLEX DCRA flexible spending account.
Eligible dependent day care expenses include:
- Work-related expenses incurred so that you and, if married, your spouse can work, or to enable you or your spouse to attend school fulltime;
- Before/after school care; and
- Preschool/nursery school for pre-kindergarten.
Making your UT FLEX Election
Don’t forget—to participate in UT FLEX, you must make your election through the My UT Benefits online enrollment system during this year’s Annual Enrollment period (even if you are a current UT FLEX participant).
*There is an annual administrative fee of $12 per UT FLEX account (HCRA and DCRA). The administrative fee is the first deduction from your UT FLEX account(s) and is prorated for mid-year elections.