An Important Message for NC Health Benefit Representatives

January 2022

Remind Employees to Check Benefit Deductions

January paystubs for your employees will show the first NCFlex deductions for the 2022 plan year. Remind employees to check their paystubs for accuracy by comparing their deductions to 2022 rate sheets. If your employee(s) feel there was an error made during Open Enrollment, they should contact you, their HBR/UBA, to determine if an exception request is warranted. As HBRs/UBAs, it is your decision whether or not to submit exceptions on an employee's behalf. Whether you agree with the employee or not, always include all details you feel are relevant to the exception request for NCFlex's consideration.   To submit an exception, complete the exception form on the NCFlex HBR Webpage. Include all pertinent details to help us process your exception as quickly and accurately as possible. NCFlex will accept Open Enrollment exception requests through March 15. Dependent Day Care exceptions will still be considered after this date if an employee enrolled in the DDCFSA in error.

At-Home Rapid COVID-19 Tests and HCFSA   Recently, the State Health Plan announced that up to 8 At-Home COVID tests per 30 days would be covered at 100% for participants of the 80/20, 70/30 and HDHP plans via the pharmacy benefit.   Please note, although these tests are considered an eligible Health Care FSA item, the HCFSA will only cover At-Home COVID tests once an employee submits a claim to P&A and includes a pharmacy receipt showing their out-of-pocket costs (not covered by the State Health Plan). This is to prevent employees from receiving a duplicate benefit or "double dipping". If you have questions, please email us at [email protected].

Critical Illness and Accident Plan Participants - 1099 Forms

If an employee was paid a benefit from their Critical Illness or Accident Plan in 2021 over $600, they will receive a 1099 from Allstate (for Critical Illness) or Voya (for Accident). If receiving a 1099 for the Accident plan, please note employees will receive three copies; two for their records, and one for filing.   Employees should consult a tax professional as to whether the amount received is fully subject to income tax. Since the premium is deducted on a pre-tax basis, the benefit received is only subject to income tax to the extent that the employee’s unreimbursed medical expenses (in which Health Care FSA funds were NOT used to pay for) are less than the benefit payment. For example, if a plan (such as Accident) pays $200 for a medical office visit, but the covered individual has unreimbursed medical costs as a result of the visit of $30 (such as a copay that the HCFSA was not used for), then the $30 would be excluded from the employee's income and the excess amount of $170 would be taxable. More information can be found in this article around taxation and fixed indemnity plans which discusses an IRS Memo released in 2017.

2022 Benefits Summary The new Benefits Summary for 2022 will be available soon. You can view the 2021 version by visiting the Benefits Summary page of ncflex.org. This publication is a collaborative effort among the groups whose benefits are mentioned in the booklet.   As part of state government’s effort to promote green business practices that minimize environmental impact, we intend to produce fewer print versions of the 2022 guide. Please complete this two-question survey to let us know if you still intend to order print copies (at no cost to you) or if you will use the online version with your employees.   Please note: Universities have their own publication featuring benefits offered, which can be found at https://tinyurl.com/uncbenefitsummary (noted on the back of NCFlex's summary).

February Webinar Opportunity Allstate Cancer and Critical Illness Plans

To honor American Heart month in February, we will be discussing our Allstate plans - Cancer and Critical Illness. Share with your employees or join yourself to learn more about the plans. Employees can register on our Webinar Page for one of two dates/times - February 15 (1 - 2 p.m.) and February 24 (12 - 1 p.m.). We will also post the recording on the Webinar Page after the event. Please email us at [email protected] with any questions.

Miles for Wellness - Challenge 25 Coming Soon! Registration for the next Miles for Wellness challenge begins February 14. Miles for Wellness Challenge 25: Traversing the Northern Capitols of the United States will run from March 15 - May 8, 2022. More information along with the link to register will be shared in the February newsletter.

Visit our HBR Webpage for newsletter archives (HBR and Member) from the last six months, guide orders, exception form, and more.

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