[December 21, 2005]

The University has added a 2-and-a-half-month grace period following the end of the Dependent Care Reimbursement Account (DepCare) and Health Care Reimbursement Account (HCRA) plan year. During this period, those currently enrolled in the DepCare and/or HCRA can incur eligible expenses and be reimbursed from their unused 2005 account balance before those amounts are forfeited under the “use it or lose it” rule. The grace period will extend until March 15, 2006 (i.e., 2-and-a-half months after plan year-end).

In addition, the claim filing deadline has been extended to June 15, 2006.

Claims handling process for expenses incurred during grace period

To ensure that claims will be handled in the most advantageous manner during this grace period, SHPS (the HCRA and DepCare plan administrator) will use the following method of accounting for claim reimbursements for those who are enrolled for both 2005 and 2006. Expenses incurred between January 1 and March 15, 2006 will initially be reimbursed from the 2006 year account. After the 2005 reimbursement filing period ends on June 15, 2006, SHPS will check to see if there is any money left over from 2005. If so, they will apply the claims for expenses incurred between January 1 – March 15, 2006 to the 2005 year account to reduce or eliminate forfeitures. SHPS will then credit that same amount back into the 2006 year account. This adjustment is only on paper and will not involve any exchange of money or require any action from you.

For example:

2005 Year Balance as of December 31, 2005: $500
2006 Year Balance: $1,000
Claim Amount Submitted: $500
Date of Incurred Expenses: February 6, 2006

The claim for $500 will be reimbursed from the 2006 year account. After the 2005 claim filing deadline on June 15, a behind-the-scenes adjustment will be made. The $500 will be deducted from the 2005 year account, depleting the balance and leaving the full $1,000 for additional 2006 claims.

Always check the SHPS website for specific information on the handling of claims. Individual account information is also available by calling SHPS at 1-877-270-3915.

• The information presented in these news archive articles may no longer be current. Please note the date when the article was first published.