Flexible Spending Accounts The Texas A & M University System

1. Smart, simple savings Flexible Spending Accounts The Texas A & M University System Plan Year: 9/1/2013 – 8/31/2014

2. What will be covered? Flexible Spending Accounts PayFlex Card® Getting reimbursed HealthHub.com PayFlex Mobile™ Your connection to HealthHub

3. What is an FSA? An FSA is a Flexible Spending Account. Lets you set aside money from your paycheck (on a pretax basis) to use for eligible expenses for you, your spouse and your tax dependents. There are two types of FSAs: • Health care account • Dependent care account • You do not pay Federal income or Social Security taxes on this money. Why should you enroll in an FSA? An FSA helps reduce your taxes and increase your take-home pay! *Based on 7.65% FICA and 15% tax bracket. Please be advised that these examples are for illustrative purposes only.  These projections are only estimates of tax information and should not be assumed to be tax advice.  Be sure to consult a tax advisor to determine the appropriate tax advice for your situation.

4. Health Care FSA Due to health care reform, the annual maximum contribution amount decreased from $4,800 to $2,500. Reimburses you for out-of-pocket* medical, dental, prescription, vision or hearing expenses. The individuals allowed to use your health care FSA contribution generally includes: • Your spouse • Your child to age 26 (dependent may turn 26 during the plan year) • Your dependent who is permanently and totally disabled. Your entire contribution is available at the beginning of the plan year. *Out-of-pocket – expenses not covered by insurance

5. Health care expenses Eligible expenses: Medical & dental deductibles, co-pays and co-insurance Prescriptions Hospital expenses Selected durable medical equipment Orthopedic devices LASIK surgery, eye glasses, contact lenses Saline/clean solutions Hearing aids and batteries Bridges, dentures, crowns, orthodontic care Chiropractic expenses/co-pays Insulin, syringes for insulin Ineligible expenses: • Anti-bacterial soaps • Dandruff or dry skin treatments • Teeth bleaching or mouthwash • Suntan/sunscreen lotion • Cosmetic surgery • Dietary & herbal supplements • Child birth classes • *A letter of medical necessity may allow some of these expenses to be eligible View a detailed listing of eligible expenses at HealthHub.com

6. Dependent Care FSA Helps you pay for child or adult care costs. To receive reimbursement, you must be working. If you are married, your spouse must either be working, looking for work, be a full-time student or incapable of self-care. The cost of care must be for your child under age 13 or for a spouse or dependent who is not able to take care of him or herself. Expenses are reimbursed based on the amount available in your account.

7. Dependent day care expenses • Eligible expenses: • Licensed day care provider • In-home provider as long as the care provider is not your child under age 19, or someone you claim as a tax dependent • Summer day camps • Tuition through preschool • Before and after school care (under age 13) • Ineligible expenses: • Tuition expenses for kindergarten and beyond • Overnight camps • Child care expenses for a child 13 or older (unless disabled) • Child care expenses for night-time babysitting • Child care expenses while you are on an extended leave of absence • Care provided by an older dependent or sibling View a detailed listing of eligible expenses at HealthHub.com

8. What you need to know about FSAs • You can only enroll in an FSA during annual enrollment or when you first become eligible. Once you enroll, you may only change your contribution if you have a change in status (e.g., marriage, divorce, birth, adoption, death, etc.) You do not need to be covered by your employers health plan to participate in an FSA. • Your FSA has a grace period., which gives you another 2 months and 15 days (after the plan year) to use your funds. The last day to spend your funds is November 15. • Your FSA also has a run-out period, which gives you another 122 days to submit claims for reimbursement. The last day to submit claims is December 31. • FSAs have a use-it-or-lose-it rule. If you have funds left in your FSA at the end of the plan year you will lose them.

9. Getting started is as easy as 1-2-3! Estimate the amount you will spend on out-of-pocket health care and/or dependent care expenses during the plan year. • Review expenses from prior plan year. • Use our planning tools available at HealthHub.com Decide how much you wish to set aside in your health care and/or dependent care FSA. • Divide your annual contribution by the number of pay periods in your plan year to determine the amount that will be deducted from your paycheck each pay period. As you incur eligible health care and dependent care expenses throughout the year, you can: • Use your PayFlex Card® to pay for eligible health care expenses (Healthcare FSA Only). OR • Pay for eligible expenses out of pocket and submit a claim for reimbursement.

10. PayFlex Card® Spending made simple. Select. Swipe. Save. • What is the PayFlex Card? • The PayFlex Card makes it easy for you to spend the money in your health care FSA. When you swipe the card, it uses the money in your account to pay for eligible health care expenses. • $9.00 Annual Fee (Deducted from your election amount) • Optional for Healthcare FSA • If you currently have a PayFlex Card and would like to continue using the card during the upcoming plan year, you must elect the card during annual enrollment • The card can be elected at anytime during the plan year ($9 fee still required) • If you do not elect the PayFlex Card, you must submit claims to PayFlex to get reimbursed for your eligible healthcare expenses • Important Reminders: • You can use the card as “debit” or “credit.” If you use the card as “debit” you’ll need a PIN to complete the transaction. To create a PIN, call 1-888-999-0121. • Merchants must accept MasterCard® in order for the card to work • Save your receipts and Explanation of Benefits in case documentation is requested by PayFlex. • You can order a card online for your spouse or dependent at no cost.

11. Getting reimbursed If you choose not use your PayFlex Card®, you can: Submit a claim online at HealthHub.com Submit a claim through the PayFlex Mobile app Complete a claim form and fax to PayFlex Complete a claim form and mail to PayFlex *Reimbursement will only be provided for services received, not for services to be provided in the future. Quick Tips: Save receipts and Explanation of Benefits to send to PayFlex Receive quick reimbursements by enrolling in direct deposit online. Download a claim form online in My HealthHub Resources. Claims are paid every Monday & Thursday View your claim history and payments online at HealthHub.com.

12. HealthHub.com Sign up for electronic account notifications Access planning tools, forms, & educational materials Access your claim history & transactions Submit a claim online This section will include alerts such as card status, claims requiring documentation and your next claim payment. View card status View FAQs View legislative updates and important news View wellness videos & tips Access your account balance

13. PayFlex Mobile™ Keeping you connected for FREE! Available for iPhone®, BlackBerry® and Android™ smartphones Getting Started with PayFlex Mobile Register your account at HealthHub.com to create a username and password. Access your phone’s app store and select PayFlex Mobile to download the app. To use the app, login to your account with your HealthHub username and password. Features & Benefits Account Alerts Receive notifications related to account status and actions needed to keep your account active. Account Activity Access real-time account information including account balances, claims processed and transaction details. Claims Submission Submit claims for reimbursement and even substantiate a debit card transaction. Benefit Plan Details Store important health plan information and view a list of common eligible expenses. Who to contact for assistance Downloading issues – contact your phone carrier directly for assistance. All other issues – contact PayFlex Customer Service at 800-284-4885.

14. FSA Reminders Re-enroll If you are a current FSA participant and would like to have an FSA for the upcoming plan year, you must re-enroll. If you currently have a PayFlex Card and would like to continue using the card during the upcoming plan year, you must elect the card during annual enrollment “Use it or Lose it Rule” Be conservative when setting your election amount for the upcoming plan year. Any amount left in your FSA after December 31, will be forfeited. Save Receipts & Explanation of Benefits (EOBs) You must submit your receipt and/or EOB with your claim form in order to get reimbursed. If you use your PayFlex Card, you may be required to submit your receipt or EOB to verify that you used your card for an eligible expense. More time to spend your FSA dollars! For the 2012-2013 plan year, you have until November 15, 2013 to incur eligible expenses. For the 2013-2014 plan year, you have until November 15, 2014 to incur eligible expenses. You have until December 31 to submit claims to PayFlex for reimbursement.

15. Your connection to HealthHub® Learn more by visiting www.HealthHub.com > Employee Account Login > My HealthHub Resources