COUNTY OF SANTA CRUZ HEALTH CARE FLEXIBLE SPENDING ACCOUNT

1. COUNTY OF SANTA CRUZHEALTH CARE FLEXIBLE SPENDING ACCOUNT

2. Health Care FSA • Employee-funded account for the reimbursement of expenses not covered by insurance • Pre-tax funding of elective contributions for known, budgetable expenses • $2,400 plan year maximum benefit election • Uniform Coverage Rule: full benefit is available on any day of the Plan Year

3. Health Care FSA • Claims Administrator: Creative Benefits, Inc. • www.crbenefits.com • Internet access to claims status and account balances • Direct Deposit of claim payments is available • Optional Health Care FSA Payment (Debit) Card - Additional $14.40 annual fee - Annual fee for the Payment Card is deducted from the participant’s FSA account in January

4. Health Care FSA • Eligibility for participation in the FSA: - Employees in permanent, budgeted positions, and employees in positions defined as limited term - Employees do not have to be covered in any of the County’s group insurance plans in order to participate in the Health Care FSA - Dependents must meet IRS definitions in order for their expenses to be covered

5. Health Care FSA Example of Estimated Tax Savings

6. Health Care FSA

7. Health Care FSA • Expenses have to be incurred during the Plan Year (January 1 through December 31) • Plan Year is extended 2 ½ months into the next Plan Year for eligible expenses to be incurred • Claims incurred from 1/1/08 through 3/15/09 can be reimbursed from the 2007 Health Care FSA account if a surplus exists at the end of the plan year on 12/31/07

8. Health Care FSA • eligible expenses will be reimbursed from the prior year’s balance first, then from the current year’s balance • all expenses that are to be reimbursed from the 2007 Plan Year’s election must be submitted by 3/31/08 • Un-reimbursed contributions are forfeited by the plan participant • Receipts must be provided to Creative Benefits for all expenses

9. Flexible Benefit PlanEmployee Enrollment Health Care FSA enrollment cannot be changed during the plan year without a qualified status event: • Death / divorce / legal separation • Marriage • Change in number of dependents • Change in employment status

12. TAX CALCULATOR

13. TAX CALCULATOR

14. TAX CALCULATORpassword: creative

15. TAX CALCULATORpassword: creative

16. COUNTY OF SANTA CRUZHEALTH CARE FLEXIBLE SPENDING ACCOUNT