The University of Texas System

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UT FLEX
2004 Information Meeting

The University of Texas System Employee Group
Insurance
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New UT FLEX Administrator
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New UT FLEX Administrator

• The University of Texas System contracts with new
  administrator, PayFlex Systems USA, Inc.
• Adds more features
• New Flex Convenience Card???
• Over-the-counter drugs eligible 9/1/04???
• Daily processing of claims ???
• (Direct deposits/claim checks out in 72 hours)
  
• Toll-free customer service line(866) UTS-FLEX
• Toll-free fax line for claims [phone]
• E-notify

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UT FLEX Plan Year

• Begins September1, 2004 and
• ends August 31, 2005
• Eligible expenses must be
• incurred during the plan year

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Whats in it for You ?
UT FLEX Reimbursement Accounts

• Tax Savings!

• No federal income tax
• No FICA tax
• Your taxable income goes down!
• Your spendable income goes up!

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The UT FLEX Tax Advantage
Example
Tax Savings Using UT FLEX-552!
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UT FLEX Reimbursement Accounts

Medical Expense Reimbursement Account

• Medical
• Dental
• Vision
• Hearing Care

• Co-pays
• Deductibles
• Over-the-Counter

Day Care Reimbursement Account

• Day Care expenses for child or disabled adult
  dependent that allows you and your spouse to
  continue to work or attend school

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Eligible Medical Care Expenses

• Medical and dental
• Deductibles
• Coinsurance
• Copays
• Insulin, syringes for insulin
• Rx drug deductibles/copays
• Chiropractor copays

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Eligible Medical Care Expenses

• Rx eyewear, contact lenses, and their cleaning
  solutions
• LASIK vision correction surgery
• Hearing aids and batteries
• Dental-orthodontist, bridges, fillings
• Specific medical condition exists
• See www.utflex.com or call PayFlex for
  IRS-eligible expenses

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Over-The Counter Drugs and Medicines
OVER
NEW FOR THIS PLAN YEAR! OVER-THE-COUNTER DRUGS
MEDICINES
IRS-eligible
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Eligible Over-the-Counter Drugs and Medicines

• Antacids
• Anti-diarrhea
• Anti-fungal ointments and creams
• Antiseptic ointments and creams
• Cold remedies including sore throat sprays,
  lozenges, nasal sprays, cough syrups, cough drops
• Eye drops
• First-aid antibiotic ointments and creams

• Gas Relief
• Hemorrhoid ointments and
• creams
• Laxatives
• Lice treatments
• Motion-sickness pills
• Pain Relievers including arthritis pain,
  back/head pain
• Sleep Aids
• Stop smoking gums /patches
• Yeast infection products
• Vapor rubs

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Ineligible Over-the-Counter Drugs and Medicines

• Anti-bacterial soaps
• Acne treatments
• Dandruff shampoo
• Dry skin creams/treatments
• Foot care products
• Hair loss treatments
• Lactose intolerance supplements

• Mouthwash
• Suntan and sunscreen lotion
• Dietary supplements or replacements
• Supplements like fiber, calcium, etc

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Ineligible Medical Expenses

• Cosmetic Reasons
• General Good Health
• Vitamins, Herbal and Dietary supplements

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Day Care Reimbursement Account

• Expenses necessary for you and, if married, your
  spouse to work
• Child care or adult day care expenses
• For dependent children under 13 or incapable of
  self support
• For a spouse or eligible dependent who is
  physically or mentally incapable of self-care
• Compare tax savings of UT FLEX Day Care
  Reimbursement Account with federal childcare tax
  credit

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Qualifying Childcare Providers Include
Day Care Reimbursement Account

• Private sitter
• Licensed day care provider
• An in-home provider as long as the care provider
  is not your child under age 19, or someone you
  claim as a dependent for income tax purposes

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UT FLEX Reimbursement Accounts
Medical Expense Reimbursement Account
Day Care Reimbursement Account

• Maximum 5,000 per plan year
• 100 of your Medical Reimbursement Account
  Election is available for you to spend 9/1/2004!

• Maximum 5,000 per plan year
• 208 is the monthly maximum if married and
  filing separate tax returns

• Minimum 180 per plan year (15 x 12 months or
  20 x 9 months)
• In any given calendar year, the combined pre-tax
  dependent day care deductions cannot exceed
  5,000 for tax filing purposes.

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UT FLEX Reimbursement Accounts

• After September 1st, 2004,
• You may be reimbursed by
• Flex Convenience Card
• Direct deposit to checking or savings account
• Paper check mailed to home
• Eligible expenses must be incurred during the
  plan year September 1, 2004 through August 31,
  2005 and while you are enrolled in the plan

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UT FLEX Direct Deposit

• For direct deposit, all participants enrolled in
  UT FLEX for the new plan year must complete a
  PayFlex direct deposit form and send it to
  PayFlex
• The form is located at www.utflex.com
• Please complete the form and attach a voided
  check
• Return to PayFlex by mail or toll-free fax

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Important UT FLEX Reminders!

• Enrollment in UT FLEX is for the full plan year,
• unless a Qualified Status Change permits
  change.
• Remember To participate in UT FLEX, you must
  enroll or
• re-enroll during each years Annual
  Enrollment period.
• Participants must apply for the Flex Convenience
  Card
• during annual enrollment or wait until next
  year!
• PayFlex will process UT FLEX reimbursable
  expenses (including IRS-eligible over-the-counter
  items) incurred during the new plan year, 9/1/04
  through 8/31/05.
• Claims for eligible expenses incurred through
  8-31-04 will be processed by your current
  administrator, FlexBen, until November 30, 2004
  (end of claims run-out period).

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UT FLEX Convenience Card

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UT FLEX Convenience Card

• The Flex Convenience Card is a signature-based
  MasterCard debit card that accesses your
  PayFlex spending account.
• Use it to pay for IRS-QUALIFIED
  medical/dental/vision/hearing care expenses-just
  like minutes from a pre-paid phone card!
• Use the card until the plan year election amount
  is used up! You can check your UT FLEX balance
  frequently, either on line or by calling (866)
  UTS-FLEX! Transactions in excess of the total
  election amount or the remaining balance will be
  rejected by the merchant.

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UT FLEX Convenience Card Advantages

• Convenient Easy to Use!
• No claim form to complete!
• Dollars come out of your
• UT FLEX account not your pocket!
• FAST- no waiting for a reimbursement!
• Provide documentation to PayFlex
• only when requested by letter!
• Accepted at qualified merchants for
• IRS-qualified medical expenses

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UT FLEX Convenience Card Reminders

• Save the flex card receipts documentation for
  one year.
• PayFlex may request documentation based on IRS
  guidelines.
• Keep eligible card purchases separate
• from other purchases made at the same store.
• Wal-Mart is currently not accepting any
  signature-based MasterCards. This includes the
  Flex Convenience? Card.
• Do not throw away the card when your account
  balance reaches 0.
• The card does not expire for three years, and
  PayFlex will
• reload it next year with your new election
  amount.

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UT FLEX Convenience Card

• The UT FLEX Convenience Card must be requested
  by the UT TOUCH System during Annual Enrollment
  or by Paper Enrollment Form
• One card per member and additional cards for
• dependents available by request at no
  additional
• cost. Order online after you receive your
  card.
• The Flex Convenience Card is for
• medical expenses only,
• not for day care expenses.

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UT FLEX Convenience Card

• A 9.00 flex card fee will be deducted from
  your UT FLEX account automatically in
  September, 2004
• No card replacement fees (lost/stolen)
• Card is valid for three years
• Medical Expense Reimbursement available
  account balance
• determined by your plan-year election amount
• Receipts/documentation needed only when
  requested
• by PayFlex by letter per IRS guidelines.
• IMPORTANT Keep all documentation for your
  records!

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Flex Convenience Card Mailing

• Participants electing the Flex Convenience Card
  will receive the card by mail at their home
  address
• The card is mailed in a plain white envelope with
  PayFlex Systems USA, Inc., Omaha, NE as the
  return address. Be on the lookout for it!
• Cards will be processed as enrollment files are
  received from EGI. Your card should arrive around
  9/1/04
• Information, including how to use the card, dos
  and don'ts will accompany the card

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Fast Claims Processing!
Reimbursement of Paper Claims
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Reimbursement of Paper Claims

• CLAIMS PROCESSED DAILY! Reimbursements sent by
  check or direct deposit within 3 working days!
• Fax your claim toll-free or mail or to PayFlex
  along with claim form, receipts and/or
  documentation including EOB statements.
• PayFlex computer servers receive your paper fax
  directly-no lost faxes, faster claims processing!
• Claims can be submitted at any time for expenses
  incurred during the plan year, but must be
  received by PayFlex no later than November 30
  following the end of the plan year (August 31).

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Customer Service

• UT FLEX 24-Hour Info Line Toll-free (866)
  887-3539 (UTS-FLEX) for account balances claim
  counselors available M-F 700 a.m.-500 p.m.
  Central Time
• Website www.utflex.com has account
  information, downloadable claim forms, direct
  deposit forms, eligible expenses, Q and A, and
  Flex calculators
• e-Notify Sends e-mail to participants on status
  of paper claims
• Quarterly statements
• You will receive a year-end post card reminder
  by U. S. mail on approx. July 1st, 2005 (60 days
  prior to end of the plan year), if you have a UT
  FLEX balance greater than 10

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www.utflex.com
www.utflex.com
UT FLEX
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SPECIAL IRS PLAN RULES

• Once you establish your plan year election, you
  may only change their election if they
  experience a change in family status.
• Any amount left in a UT FLEX account at the end
  of the plan year will be forfeited. For the
  fiscal year ending 8/31/05, participants may file
  plan year claims until November 30, 2005.
• You must enroll in UT FLEX during Annual
  Enrollment every year to participate!
• Even if you or an eligible dependents are covered
  under another health insurance plan, any eligible
  expenses can still be reimbursed by UT FLEX!

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Determine Your UT FLEX Contribution

• Only consider expenses that you know you and/or
  dependents will POSITIVELY, WITHOUT A DOUBT,
  incur during the plan year
• You cant predict the future however, many
  out-of-pocket expenses recur every year
• Childcare or adult daycare expenses usually can
  be determined very accurately

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Determine Your UT FLEX Contribution

• Determine those out-of-pocket expenses that
• occur every year
• Rx drugs, office visit co-payments, orthodontist
  visits
• Contact lenses cleaners, OTC drugs/medicines
• Childcare or adult daycare expenses
• Determine those out-of-pocket expenses that you
• are certain you will incur during this plan year
• Major dental work crowns, bridges, root canals
• LASIK vision correction surgery
• Prescription eyeglasses or Prescription
  sunglasses
• Hearing aid

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Important Reminders

• Review your EXPECTED EXPENSES. Do your homework!
  Ask your tax advisor, co-workers, friends and
  relatives.
• Only consider the expenses you know absolutely,
  positively, without-a-doubt you will incur during
  the plan year!
• BE CONSERVATIVE! Remember the use it or lose it
  rule, but dont let it scare you! Take a close
  look at this valuable tax break. It could
  increase your spendable income.

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UT FLEX Administrator

PayFlex Systems USA, Inc. P.O. Box 3039 Omaha,
Nebraska 68103-3039 Phone Toll-Free (866)
887-3539 (866-UTS-FLEX) Fax Toll-Free (877)
230-4283 www.utflex.com
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