Note to SHPS Spending Account Card Users

April 11, 2008

You may have recently received an Account Activity Statement from SHPS for your Spending Account.  SHPS has discovered errors on many of these statements, and is working to correct the inaccuracies.
 
On the statements, SHPS asked participants to provide documentation regarding some purchases that were actually co-pays for either pharmacy transactions or medical fees.  Health Care FSA participants do not need to submit validation of co-payment transactions.  SHPS is working to validate those claims.

You will receive a letter from SHPS and a corrected statement shortly.  Please save all your receipts and wait for the corrected statement. 

If you have further questions or concerns, please contact the SHPS Customer Service Center at 1-800-678-6684 or review your account information at www.myshps.com.

You may incur expenses on your 2008 Health Care FSA until March 15, 2009, and file claims by May 31, 2009.

The University's Flexible Spending Accounts allow you to set aside pre-tax dollars for certain out-of-pocket health care and dependent care expenses, thus lowering the amount of income tax you will pay while providing more value for every expenditure you make.

The University offers two types of accounts:

1. Health Care Flexible Spending Account
2. Dependent Care Flexible Spending Account

How the Accounts Work
Managing a Flexible Spending Account is simple. Each year, you set aside an amount you reasonably predict you will spend on health care and work-related dependent care and contribute this sum on a pretax basis into the appropriate Flexible Spending Account. Your contributions to FSAs do not reduce your pay for determining your life insurance, travel accident insurance, long-term disability, or retirement benefits provided by the University.

Online Calculator
The University's claims processor, SHPS, provides an online FSA Calculator to help you determine how much to contribute to your FSA account, and lets you know how much you can save by using pre-tax dollars to pay for eligible health care and/or dependent care expenses.

Contribution amounts are reported to SHPS monthly at the end of the month in which the payroll deduction is taken.

Then, as you incur eligible expenses, you simply submit the required documentation to SHPS.

SHPS will usually reimburse all claims for eligible expenses within ten business days from the date it receives your request.

An important difference to remember:

• You can file claims for amounts totaling your entire annual health care contribution from your Health Care Flexible Spending Account at any time during the year;
• To receive a reimbursement from your Dependent Care Flexible Spending Account, you must have accumulated sufficient contributions to cover your claim at the time your request is made.