An Important Message for NC Health Benefit Representatives

January 2026

Remind Employees to Check Benefit Deductions

January paystubs will show the first NCFlex deductions for the 2026 plan year. Remind employees to check their paystubs by comparing their deductions to the 2026 rate sheets.

If your employee(s) finds an error made during Open Enrollment, they should contact you, their HBR/UBA, to determine if an exception request is warranted. Typically, we do not consider forgetting to complete enrollment or declining a benefit they wished to enroll in to warrant an exception. 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 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 quickly and accurately, and note if the employee's exception request is related to the impact of Hurricane Helene. Although exceptions are reviewed daily and processed in a timely manner, be aware that certain times of year are busier; as a result, it may take longer to review and process these requests.

NCFlex will accept Open Enrollment exception requests through March 15. Dependent Day Care Flexible Spending Account (DDCFSA) exceptions will be considered after this date if an employee enrolled in the DDCFSA in error.

Order 2025 Benefits Summaries by Feb. 5

The 2026 Employee Benefits Summary is now available digitally. While this does not apply to all employing units, some may find it useful for recruitment purposes, for new hires, or as a benefits tool for employees.

University employees should visit Benefits Enrollment Central to access the most up-to-date University Benefits Summary.

If you would like to order printed summaries for your location, please click the button below to complete the order form by 12 p.m. on Friday, February 5. Please order what you think you will need for at least the first half of the year. We will reach out for any additional orders mid-year.

Flexible Spending Accounts - Resources

This time of year we typically get a lot of questions from employees regarding their Flexible Spending Accounts (FSAs), especially when it comes to their rollover or carryforward with the HCFSA. Our website explains how the rollover works, which can be shared with employees.

You can scroll through the HCFSA section to find even more resources to help answer questions including lists of eligible items, FAQs, and instructions on how to check a FSA account balance. You can also find comprehensive details on filing claims.

Of course, every situation is different, and it may be difficult to answer some complex questions with the resources on our website. Reach out to us at ncflex@nc.gov if you need further help in answering an employee's question.

Critical Illness and Accident Plan Participants - 1099 Forms

If an employee was paid a benefit of over $600 from their Critical Illness and/or Accident Plan in 2025, they will receive a 1099 from Voya. These 1099s will be mailed by Friday, January 31.

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 (for which Health Care FSA funds were not used to pay) are less than the benefit payment.

For example, if the Accident Plan pays $200 for a medical office visit, but the covered individual has an unreimbursed medical cost of $30 from a copay the HCFSA was not used for, then only $170 would be taxable.

More information can be found in this article about taxation and fixed indemnity plans which discusses an IRS Memo released in 2017.

HBR/UBA Upcoming Training - Benefits Overview and Admin Manual

This month, we will hold two virtual, annual trainings. First, we will go over all of our benefits in detail. In the second training, we'll discuss our administration manual. These trainings are intended for anyone who has recently taken on a role to help employees with NCFlex benefits or benefit reps who want a refresher. Both sessions will be recorded for those unable to attend.

Register on our upcoming training page.

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