Questions and Answers
Flex Credits, Price Tags, Costs
Q.How did the Montana University System decide on the number of
Flex Credits provided to pay toward the cost of benefit selections?
A. The number of Flex Credits provided
under Choices is based on the State of Montana's contribution
toward the cost of your benefits -- which is determined by the
State legislature. Consistent with Montana University System's
goal of ensuring that all eligible faculty and staff have benefits
protection, you will receive enough Flex Credits to purchase Employee
Only coverage for the following:
- $400 Deductible Medical Plan,
- Premium Dental Plan,
- Basic Life/AD&D Insurance in the amount of $20,000, and
- Long Term Disability coverage of 60%, paid after a six-month waiting period of disability.
Q.Why do I have to choose any benefits; why can't I just take
the cash equivalent?
A. Montana State statutes currently
do not allow state employees to receive cash instead of benefits
protection.
Q.What happens
if I don't use all of my Flex Credits?
A. Any Flex Credits remaining after
you have made all of your benefit decisions are automatically
allocated in your name to a Health Care Expense Account. If
you haven't enrolled for this account, one will be opened for
you.
Q.What is the
advantage of paying for benefits on a before-tax basis? Are
there any disadvantages?
A. When you pay for benefits on
a before-tax basis, you reduce your taxable income. This means,
you pay less federal and state income and Social Security taxes.
It's possible, however, that since you are paying less in Social
Security taxes, paying for benefits before-tax could ultimately
reduce benefits you may receive from Social Security by a small
amount. In addition, before-tax Long Term Disability benefits
become taxable as you receive them.
Medical and Dental
Q. I have medical coverage available through my spouse's employer.
Can I drop Medical coverage under Choices and use the Flex Credits
toward the cost of other benefits?
A. Under Choices, you must elect
coverage for yourself. Note, however, that coverage under this
plan and your spouse's plan may coordinate to pay up to 100% of
your eligible medical expenses.
Q. Can I enroll
my children in one Medical or Dental Plan and myself in another?
A. No. You must enroll in the same
plan as you enroll your dependents. You may, however, enroll different
dependents for medical coverage than you enroll for dental coverage,
as long as you are enrolled for both coverages.
Q. What happens
if I enroll in the Premium Dental Plan now but later want to switch
to the Basic Dental Plan?
A. You may switch from one dental
plan to another only at every other annual open enrollment period.
Generally, this means, you must remain in the plan you have chosen
for at least 24 months.
General
Q. Are there any "pre-existing conditions" that will affect
my family or me when I enroll for Choices?
A. If you choose the highest level
of Long Term Disability coverage -- 66-2/3% after a four-month
waiting period -- the increased coverage won't apply to pre-existing
conditions until you have been covered by the plan for at least
six months. This means, your LTD benefits will remain at 60% of
pay after a six month wait if you become disabled due to a pre-existing
condition during the first six months of coverage under Choices.
Q. I am a single parent. Is there a dependent
life insurance option that will cover just my children?
A. The cost of each Optional Dependent
Life Insurance coverage level is a flat rate regardless of the
number of dependents enrolled. Therefore, as a single parent,
you may want to choose among the first three coverage levels in
which the amount of life insurance coverage for children varies.
Q. What types of
expenses can be reimbursed through the Health Care Expense Account?
A. You generally may be reimbursed
for most of the same health care expenses that are considered
deductible on your federal income tax return, with the exceptions
of health care premiums -- already paid on a before-tax basis
under Choices -- and long term care expenses. This means, you
can use your Health Care Expense Account for expenses such as
. . .
- Annual deductibles;
- Copayments for prescription drugs;
- The portion you pay of covered expenses; and
- Expenses that aren't covered under Choices, such as orthodontia, hearing aids, orthopedic shoes, vision care for your dependents and restorative dental care for your children.
See the Employee Benefit Resources website for claim forms and additional information.
You
may refer to IRS
Publication 502 for more information
about reimbursable health care expenses. This publication
is available at many public libraries or may be obtained by
calling the IRS directly at 1-800-829-3676.
Q. Can I be reimbursed from the Dependent
Care Expense Account for baby-sitting services in my home?
A. Yes, if the services are necessary
for you -- and your spouse if you're married -- to work or look
for work. To qualify, the services may not be provided by your
spouse, by someone you claim as a deduction on your federal income
tax return or your child under age 19.
Q. What happens
if I don't enroll in Choices?
A. If you don't return a completed
enrollment form by the end of the open enrollment period, you'll
automatically be assigned "default coverage" under Choices.
Default coverage consists of the following Employee Only coverages:
- Medical under the $400 Deductible Premium Plan;
- Dental under the Premium Plan;
- Basic Employee Life Insurance/AD&D equal to $20,000; and
- Long
Term Disability equal to 60% following a six-month waiting
period of disability.
