COMPTROLLER'S SEAL STATE OF CONNECTICUT

STATE OF CONNECTICUT

NANCY WYMAN
COMPTROLLER
OFFICE OF THE STATE COMPTROLLER
55 ELM STREET
HARTFORD, CONNECTICUT 06106-1775
MARK OJAKIAN
DEPUTY COMPTROLLER

COMPTROLLER'S MEMORANDUM NO. 2010-30

October 18, 2010

TO THE HEADS OF ALL STATE AGENCIES

Attention:   Personnel and Payroll Officers, Chief Administrative and Fiscal Officers, and Business Managers
Subject:   Medical Flexible Spending Account

I. INTRODUCTION

Pursuant to the provisions of Connecticut General Statutes (C.G.S.) Section 5-264(d), the Office of the State Comptroller (OSC) has implemented a Medical Flexible Spending Account (MEDFLEX). The MEDFLEX will allow State of Connecticut Employees to pay for medical and dental care expenses not covered under the State's healthcare plan on a pre-tax basis.

The purpose of this Memorandum is to (1) announce the commencement and open enrollment period of the benefit; (2) present its components; and (3) provide details about implementation and administration.

II. BACKGROUND

C.G.S. Section 5-264(d) authorizes the OSC to offer to eligible State employees the option to exclude from taxable wages and compensation employee medical and dental costs not covered under the State's healthcare plan. Expenses may be reimbursed for the employee, their spouse and their IRS eligible dependents so long as: (1) expenses are qualified under IRS Code Section 105 and 213; (2) all other sources of reimbursement are exhausted (ex. health insurance plan); (3) reimbursement will not be sought from any additional source and; (4) documentation to substantiate expenses is maintained and submitted for verification. A sample listing of eligible over-the-counter and medical products and services and ineligible expenses is attached. Further information regarding eligible expenses is available through IRS Publication 502 available on the OSC web site http://www.osc.ct.gov/empret/indxhlth.htm .

III. DISCUSSION

The open enrollment period for the 2011 MEDFLEX Plan Year is scheduled for November 1, 2010 through November 30, 2010.

Progressive Benefit Solutions (PBS) has been chosen as the program's administrative services provider. PBS representatives will be available at various locations throughout the State to provide information as well as enroll employees in the program. Unless otherwise noted, informational sessions will be open to all State employees; therefore, employees may attend those sessions that best meet their needs. Statewide communication relative to MEDFLEX will include agency visits along with a MEDFLEX informational flyer. The flyer will inform employees of the open enrollment period and includes the statewide schedule of informational sessions. We are asking agencies to display the attached MEDFLEX flyer and Statewide Enrollment Schedule on your agency bulletin board. Additionally, the OSC will insert a MEDFLEX open enrollment announcement in employee paychecks dated October 22, 2010.

Employees interested in participating in the program are responsible for obtaining the necessary enrollment applications and meeting all associated deadlines. Applications can be downloaded from the OSC web site: http://www.osc.ct.gov/empret/indxhlth.htm , the PBS web site: www.ctpbs.com  or by contacting PBS toll free at 1-866-906-8023. Employees who fail to return application forms before the deadline will be denied participation in the program; no late applications will be accepted; no exceptions will be made.

For Plan Year 2011, contribution limits are between $520 and $1500. Throughout the year, the amount chosen will be deducted evenly from the employee's paycheck based on their pay frequency (ex. 26 pays, 24 pays, 12 pays). Employees must estimate their family's yearly medical expenses not covered under the State's healthcare plan in order to choose the appropriate amount to set aside for the MEDFLEX. Estimates should be conservative as expenses must be incurred during the plan year (January to December) or during the plan year period of coverage (consistent with a qualified family status change event). Any monies not spent during the plan year will be forfeited.

IV. PROCEDURES

A. Enrollment Procedures:

PBS is responsible for the enrollment of eligible employees who wish to participate in the MEDFLEX. Employees are entitled to enroll in the MEDFLEX during one of the following periods:

  1. The annual open enrollment period;
  2. Within thirty-one days of the hire date; and
  3. Within thirty-one days of a change in family status which makes the employee eligible to participate.

B. Payroll Procedures:

Payroll processing of MEDFLEX applications will be performed by PBS. Agencies are not responsible for processing MEDFLEX enrollment applications.

C. Election Changes:

Once enrolled, changes in elections are allowed only under the following circumstances:

  1. Participant terminates employment;
  2. Participant experiences a family status change that affects benefits eligibility, such as marriage, divorce, death of a spouse or dependent, birth or adoption of a child, changes in spouse's employment status.

Participating employees who wish to make an election change, or terminating employees must complete the MEDFLEX Enrollment/Change Form with PBS within thirty-one days of the change in status.

Employees who are out on any leave of absence including worker's compensation do not need to enroll during the annual open enrollment period. Upon return to work, employees will have 31 days to enroll in the MEDFLEX.

Employees may download enrollment/change forms and claim forms via the OSC web site: http://www.osc.ct.gov/empret/indxhlth.htm , the PBS web site: www.ctpbs.com  or by contacting PBS toll free at 1-866-906-8023.

V. CONCLUSION

Enrollment and benefit questions relating to the MEDFLEX may be directed to PBS at 1-866-906-8023. Questions pertaining to this Memorandum may be addressed to the Healthcare Policy & Benefit Services Division, Employee Benefits Unit at (860) 702-3543.

Thank you in advance for your assistance in making this benefit accessible to your agency's employees.

Very truly yours,

Nancy Wyman
State Comptroller

Attachments:
MEDFLEX flyer
Statewide Enrollment Schedule

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