Christian Schools International

No. 62 - April 2011

To: Schools and Employees Eligible to Participate in the Flexible Benefits Plan
From: Brian C Meekhof, Benefits Administrator

Eligibility Change - 40% of full time or more are eligible

The CSI Flexible Benefits Plan - Average savings of over $300!

Over-the-Counter Expense Change - change in list of eligible expenses

All Reimbursements by Direct Deposit - Rapid reimbursement with direct deposit

Features of the Plan - Designed for savings and speed

Using the FSA with HSA Plans - Federal regulations limit the use of FSAs with HSAs

Enrolling for the Plan Year Beginning September 1, 2011 - Use the Worksheet to make enrollment easy

Deadline for Submitting Claims - Submit claims before November 30

Contacting CSI for Support - Contact CSI if you have questions or need assistance

Eligibility Change

Currently, any employee working 50% or more of full time is eligible to participate in the Flexible Benefits Plan. Effective September 1, 2011, employees working 40% or more of full time are eligible. This change allows more employees to take advantage of the tax-saving features of the plan.

The CSI Flexible Benefits Plan

The CSI Flexible Benefits Plan can reduce your health care expenses. By setting aside pre-tax dollars to pay for eligible expenses like medical, dental, vision and dependent care expenses, our participants are saving an average of over $300 in taxes this year. You have the option of using the premium account, health reimbursement account, and the dependent care account to pay for eligible expenses. Arcadia Benefits Group provides administrative services for the CSI Flexible Benefits Plan by processing claim reimbursements and tracking account balances.

Over-the-Counter Expense Change

The health care reform legislation recently passed by Congress changes the list of eligible over-the-counter items that can be reimbursed through a Health Flexible Spending Account (FSA). Effective January 1, 2011, over-the-counter drugs and medications no longer qualify as an eligible expense and will not be reimbursed unless you have a written prescription from your physician. The prescription must be dated prior to the purchase. This includes aspirin, ibuprofen, acetametaphine, allergy medications, cold and flu medications, creams and other medications. Over-the-counter items that are not considered drugs and medications that remain eligible are contact solutions and Band-Aids.

All Reimbursements by Direct Deposit

All reimbursements for the FSAs are made by direct deposit. Complete the direct deposit section on the enrollment form if you are a new participant or if you are a current participant who wishes to change your direct deposit information. If you have a change in your bank account during the year, you can update your information by completing the direct deposit section on any claim form you submit. You can verify your reimbursement online and will receive a deposit advice by e-mail in lieu of a check.

Features of the Plan

CSI Flexible Benefits Plan contains these attractive features:

1. Tax Advantages: You are reducing your taxable income and saving tax-free money for health care and/or dependent care expenses. Without participating, you would still pay for these expenses but you would use money remaining in your paycheck after taxes are withheld.

2. Access to Your Contributions: Your contributions to the Health Flexible Spending Account are deducted by payroll deduction in equal amounts from your paycheck throughout the year. However, the full amount that you elect is available from the first day of the plan year. Dependent care claims are paid to the extent that funds are available in your account.

4. Claim Processing: Claims are processed and payments are issued daily and Arcadia guarantees that all claims will be processed within 2 business days of receipt.

5. Web Site: You are able to print claim forms from the CSI web site and access your account online to check claims, reimbursements, and your account balance.

Using the FSA with HSA Plans

A Section 125 plan like the CSI Flexible Benefits Plan can be used to pay for premiums and dependent care expenses on a pre-tax basis for all of CSI’s health plans, including a High Deductible Health Plan used with a Health Savings Account (HSA).
The Health FSA may be used for expenses not reimbursed through another plan. For a High Deductible Health Plan with an HSA component, however, reimbursement is limited to dental and vision expenses. There is a significant issue for participants in a High Deductible Health Plan with an HSA: even if the expense applies to the deductible, unless it is a dental or vision expense, is not eligible for reimbursement from the Health FSA.
The CSI Flexible Benefits Plan may also be used for pre-tax employee contributions to a Health Savings Account associated with a High Deductible Health Plan. You are permitted to contribute to your HSA using one of these two methods: you may contribute on a pre-tax basis through the CSI Flexible Benefits Plan, or contribute post-tax and claim the credit on your federal income tax return.

Enrolling for the Plan Year Beginning September 1, 2011

Employees working 40% or more are eligible to participate in the CSI Flexible Benefits Plan. To enroll:

1. Carefully read the brochure to learn about the features of the Plan and use the worksheet to assist with estimating predictable expenses.

2. Complete the enrollment form. Beginning September 1, you will be automatically enrolled in the premium account if you have a payroll deduction for premium. For the Health Flexible Spending Account, use Line B for the amount to be used for expense reimbursement. Use Line C, the “Limited Purpose” line, ONLY if you are covered for health by a Health Savings Account (HSA). Line D is for dependent care expenses.

3. Submit the completed enrollment form to your school office. Each eligible employee must complete an enrollment form to either participate in the Plan or to decline participation.

Deadline for Submitting Claims

The CSI Flexible Benefits Plan allows a 2 1/2 month grace period for claims. Any claims incurred during the grace period from September 1 - November 15 will first be applied to your prior year account balance (to avoid forfeitures). In addition, you have until November 30 to submit claims incurred during the current plan year and the grace period. After November 30, unused funds are forfeited. Now is a good time to check your account balance and make plans to use any remaining balance to avoid forfeiting your money. Contact Arcadia Benefits Group at 866-329-4333 for information on your account balance.

Contacting CSI for Support

To print a flex claim form, go to http://www.CSIonline.org/benefits and select Forms under Flexible Benefits. To access your account information online, select Links.
If you have not yet registered for an online account, contact Sharon for your school code (one-time code needed for setting up online access).
If you have questions about the CSI Flexible Benefits Plan, contact Sharon by phone at 616-284-3228 or 877-274-8796 x228, or by email at

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