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For Eligible

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No cost for this new benefit. Automatic participation, if eligible. No ... Customized communications sent to all impacted employees. Cover letter from region ... – PowerPoint PPT presentation

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Title: For Eligible


1
For Eligible Kaiser Permanente Employees
Northwest Region November 2009
2
Overview
  • Effective January 1, 2010
  • Health Reimbursement Account (HRA)
  • Offered to eligible employees represented by
    Labor Management Partnership (LMP) Unions
  • Tax-free reimbursement for
  • out-of-pocket eligible medical, dental, and
    vision care expenses.
  • HRA account funded with 80 of value of unused
    sick leave as of termination date
  • An account will be opened automatically when
    eligible
  • No action required
  • Retiree medical eligibility, medical plan and
    benefit levels are not affected by the HRA

3
Regions Affected
  • Colorado
  • Georgia
  • Mid-Atlantic States
  • Northern California
  • Northwest
  • Ohio
  • Southern California

4
Eligible Groups - Northwest
  • International Longshore and Warehouse Union,
    Local 28, Security Officers
  • United Food and Commercial Workers, Local 555,
    Non-Registered Drug
  • United Food and Commercial Workers Union, Local
    555-Imaging Services
  • Oregon Nurses Association
  • Northwest Region, Service Employees International
    Union, Local 49
  • The Guild for Professional Pharmacists

5
Eligible Groups Northwest (Contd)
  • Oregon Federation of Nurses and Health
    Professionals, Local 5017, Professional and Lab
    Professionals
  • Oregon Federation of Nurses and Health
    Professionals, Local 5017, Registered Nurses
  • Oregon Federation of Nurses and Health
    Professionals, Local 5017, Registered Dental
    Hygienists and Technical Employees

6
What is the HRA?
  • What is a Health Reimbursement Account?
  • The HRA, also referred to as a Health
    Reimbursement Arrangement, allows retirees and
    their eligible dependents to pay for
    out-of-pocket qualified medical, dental, vision,
    and hearing care expenses, as well as premiums
    paid to a Kaiser Permanente medical plan, on a
    tax-free basis.

7
Eligibility
  • Eligibility requirements at termination of
    employment
  • At least age 55
  • 15 or more years of Service
  • as defined under the KP-sponsored defined
    benefit
  • plan, or the pension plan under the union
    trust, as applicable
  • HRA eligibility is independent of retirement
    eligibility
  • Age and years of Service requirement waived for
    Disability Retirement

8
Eligibility (contd)
  • Eligibility requirements at termination of
    employment (contd)
  • eligible for KP medical coverage on last day of
    employment
  • enrollment in plan not required
  • must be in an employee group that participates in
    the HRA
  • ACP may participate

9
Eligible Dependents
  • Legal spouse
  • Unless divorced or legally separated
  • Must be of the opposite sex to whom legally
    married under federal law
  • Domestic partner
  • If they qualify as a dependent on employees
    federal income taxes
  • May not use HRA account to pay expenses for the
    child of domestic partner if domestic partner
    claims the child as a dependent on his or her tax
    return
  • Your unmarried dependent children under age 25
  • If divorced, children will be considered eligible
    under the plan if employee is responsible for
    childrens support and have custody of children
    for more than half of the calendar year, per the
    IRC

10
Eligible Expenses
  • IRS determines which expenses are eligible
    (qualified) for reimbursement
  • May not also claim the expense through your
    health care plan, insurance program, or income
    taxes
  • Consult a tax advisor for tax implications

11
Eligible Expenses
  • Acupuncture
  • Chiropractic care
  • Dental implants, supplies
  • Dental insurance premiums and copayments
  • Hearing exams and treatment
  • Long-term care insurance premiums
  • Sample list only, not a complete list

12
Eligible Expenses (contd)
  • Medical insurance premiums paid for a Kaiser
    Permanente medical plan only
  • Medical copayments
  • Medicare premiums
  • Premiums paid under COBRA (medical, dental)
  • Substance Abuse Treatment
  • Vaccinations
  • Wheelchair
  • Unless you live in an area where KP medical
    is not offered

13
Ineligible Expenses
  • Baldness treatments or hair transplants
  • Dancing lessons
  • Exercise equipment
  • Herbal and holistic drugs or remedies
  • Special diet foods
  • Swimming lessons
  • Vacation expenses (even if recommended by a
    doctor)
  • Sample list only not a complete list

14
How the HRA is established
  • On termination or retirement
  • HRA-convertible sick leave hours converted at 80
    of value
  • Kaiser Permanente deposits into HRA
  • No employee contributions allowed
  • 100 minimum required to establish account
  • No cost for this new benefit
  • Automatic participation, if eligible
  • No opt-out option

15
Enhanced Sick Leave Program
  • Banked Sick Leave (BSL)
  • Unused hours accrued in 2006 and thereafter
    converted at 80 of value
  • Deposited into HRA
  • No Credited Service for post-2005 BSL hours

16
Extended Sick Leave (ESL)
  • Extended Sick Leave (ESL)
  • Effective first pay period of 2010, two ESL banks
  • A current ESL bank
  • A pre-2010 ESL bank
  • ESL hours beginning first pay period 2010 go into
    current ESL bank
  • Unused ESL hours last pay period 2009 used to
    establish pre-2010 ESL bank
  • Accrued, unused ESL in current ESL account
    converted at 80 of value and deposited into HRA
  • No Credited Service for unused post-2009 ESL hours

17
When Your Account Opens
  • Welcome Kit from the HRSC
  • Notification of Enrollment Letter from Ceridian
  • Kaiser Permanentes contribution to your HRA
  • Quarterly Statements

18
How to File for Reimbursement
Submitting claims is easy
  • Submit claims through Ceridian
  • Fax 1-866-717-3820
  • Mail
  • Ceridian FSA Services
  • P.O. Box 534200
  • St. Petersburg, FL 33747-4200
  • Reimbursement via check or direct deposit
  • Check on the status of your claim or payment at
  • www.ceridian-benefits.com

19
Claims Guidelines
  • Claims processed weekly
  • No limit on number of claims
  • No minimum/maximum dollar amount
  • Submit claims within 60 days
  • Unused funds carry over from year to year

20
Account Closes
  • HRA Account closes if
  • Account balance is 0
  • Account is abandoned
  • Death, with no surviving eligible dependents
  • Upon the death of surviving eligible dependents
  • If during the termination or retirement process,
    you are deemed ineligible for the HRA

21
Account Suspended
  • Account suspended
  • If you are rehired and return to work at Kaiser
    Permanente in any capacity
  • Account Reactivated
  • When you terminate again
  • No minimum balance required

22
Customer Service
  • Ceridian Customer Service
  • 1-866-370-2534
  • or
  • Online at www.ceridian-benefits.com
  • Social Security number (with dashes)
  • Initial password/PIN
  • (last 4 numbers of your SSN reversed)

23
Contact Information
  • For HRA detailed questions, covered expenses and
    claims
  • Ceridian
  • Monday-Friday, 5 a.m.-5 p.m. Pacific Time
  • 1-866-370-2534
  • www.ceridian-benefits.com
  • For HRA general questions
  • My HR Web site
  • http//insidekp.kp.org/myhr
  • Human Resources Service Center (HRSC)
  • 1-877-4KP-HRSC (1-877-457-4772)

24
HRA Communications Timeline
  • Late November 2009
  • Customized communications sent to all impacted
    employees
  • Cover letter from region
  • Brochure containing
  • Summary of Material Modification (SMM)
  • Frequently Asked Questions (FAQ)
  • Claims process
  • January 1, 2010 - HRA becomes effective

25
  • Thank you!
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