EMPLOYEE BENEFITS

Health Care Flexible Spending Account Overview

MIT provides the Health Care Flexible Spending Account, to reimburse you for certain planned health care and dental expenses that are not covered by your health or dental plans.

Who Is Eligible

You are generally eligible to participate in the Health Care Flexible Spending Account Plan if you (1) work at least 50% of the normal full-time work schedule in your department, laboratory or center; (2) are appointed to work at MIT for at least three months; and (3) are paid by MIT.

The following titles are not eligible: consultants, contractors, fellows, affiliates, teaching or research assistance, honorary lecturers, post-doctoral trainees, people paid by MITemps and members of the armed services assigned to MIT.

If you are a member of a collective bargaining unit, all the provisions of the Health Care Flexible Spending Account Plan are subject to the terms of your collective bargaining agreement.

NOTE: If you participate in the plan, you, your spouse, and dependent children all may have eligible expenses reimbursed through the plan. Domestic partners are not eligible to have incurred expenses reimbursed.

Benefit

When you enroll, contributions to your Health Care Flexible Spending Account will be deducted from your pay each pay period, before taxes. When you incur eligible expenses, you submit claims for reimbursement through your account (see How to Obtain Reimbursement).

By setting aside money for these expenses before taxes, you will generally pay less in federal, state and Social Security taxes. You may contribute up to $8,000 each year to this Account.

Eligible Expenses

You will be eligible to receive reimbursement for expenses incurred after your coverage begins. These expenses can be your own or for another member of your family - as long as their expenses would qualify as deductions on your federal tax return. You should estimate carefully and not set aside more than the total of your anticipated expenses.

Eligible Expenses generally include health care (medical & dental) expenses for you as well as your spouse and dependent children. Here are examples of expenses eligible for reimbursement:

• Co-payments, deductibles and other expenses that are not paid by your medical and/or dental coverage
• Expenses in excess of the annual or lifetime limits under your medical and dental converges
• Prescription drugs not paid for under any medical plan
• Hearing aids and batteries
• Vision care expenses such as eye glasses, contact lenses, and contact lens cleaning solution
• Laser vision or eye correction surgery
• Weight loss programs undertaken at your physician's direction to treat a specific disease.

Orthodontia
MIT participants are eligible to be reimbursed through their Health Care Flexible Spending Account the full amount of treatment once the banding service has been performed. Benefit Concepts, Inc. will reimburse up to the full amount of the treatment, equal to the participant's annual election minus any previous reimbursements, once the initial treatment has begun.

Orthodontia benefits are available to children through age 18 under the MIT Comprehensive Dental Plan. For more information, see the Dental Plan description.

Expenses NOT Covered by Health Care Flexible Spending Accounts*:

• Medical and dental premiums
• Premiums paid for other insurance. This includes premiums paid for health and dental continuation coverage under the provisions of the Consolidated Omnibus Budget Reconciliation Act of 1986 (COBRA). Although premiums paid for other insurance may continue to be claimed on your federal income tax return, they are not eligible for reimbursement.
• Cosmetic surgery
• Equipment that is not medically necessary
• Health club dues or the cost of a personal trainer
• Teeth whitening or bleaching
• Tattoo removal
• Contact lens insurance contracts
• Safety eyeglasses

* Please note that this list is not exhaustive.  If you have specific questions, please contact the Benefits Office.

Reimbursement Period

You will only be reimbursed for eligible expenses you incur for services received during the eligible reimbursement period (or for the remaining eligible period, if you are hired mid-year). You cannot receive reimbursement for expenses incurred in a different year.

When you incur an eligible expense, you file a claim against your account. You will be reimbursed for the full amount of a claim to your Health Care Flexible Spending Account (up to the amount of your annual contribution) regardless of your account balance.

Effects on Your Salary

You are responsible for the contributions to this plan. Contributions are made on a before-tax basis each pay period. Participation in the Health Care Flexible Spending Account Plan reduces your salary subject to the Social Security tax, which will result in minimal decreases in Social Security benefits for most participants whose salary is below the Social Security wage base. Participation in this plan will not affect your salary for purposes of annual salary reviews, 401(k) participation, life insurance coverage, or disability benefits.

Over the Counter Drug Purchases

The Government's ruling to allow over-the-counter (OTC) drug purchases to be reimbursed through medical flexible spending accounts will affect our FSA administrative processes. Click here for more information (pdf).

Enrollment

You may enroll in a Health Care Flexible Spending Account within 31 days of your date of hire or appointment, or within 31 days of when you first receive your Welcome Packet, whichever is later. You may choose to begin your coverage on the date of hire or appointment, or the first of the next month. To enroll you will need to indicate the amount you want to contribute to the account. This amount will be deducted each pay period with before-tax dollars. The Benefits Office must receive your enrollment within this 31-day period or you will generally need to wait until the next annual Open Enrollment period. Open Enrollment for most benefits is held each fall.

Unlike other benefits, you must re-enroll in the Health Care Flexible Spending Account each year during Open Enrollment if you want to participate in the following year.

Changes

In exchange for the tax advantages provided by the Health Care Flexible Spending Account, you are prohibited from enrolling in, canceling or making any changes to your contribution amount unless you have an allowable change in family or employment status. Your change must be on account of and consistent with your change in family or employment status. See the list of allowable status changes. If you have an allowable change in family or employment status, you must contact the Benefits Office with 31 days to make any corresponding benefit changes.

When Do Contributions End?

Your before-tax contributions to your Health Care Flexible Spending Account end at the end of the Plan Year or when you become ineligible for benefits through MIT. You become ineligible due to termination, change of appointment ending your benefits eligibility, or retirement. However, you may continue to submit claims for reimbursement from your account for expenses incurred before the date you became ineligible.

MIT expects to continue the Plan as a benefit to employees, but reserves the right to change or terminate the Plan should this become necessary or advisable.