Important Legal Notices & Policies
Legislation is constantly changing and these changes often times affect your benefits. Here at Ithaca College Human Resources we make it a point to make the most up to date legal notices available to our employees. This section contains a list of notices and policies that you should be familiar with. If you have any questions or concerns please contact us here at ICHR.
 | 2011 Health Care Reform Changes |
| Beginning January 1, 2011, Ithaca College will implement changes to our medical plans mandated by the federal Health Care Reform legislation. |
Definition of Eligible Child is Changing
During re-enrollment you may enroll (or re-enroll) your adult children who were previously dropped from medical coverage due to age limits or student status. Full-time student status will no longer be required and dependent children do not have to live with you or depend on you for financial support to be eligible for coverage. The coverage does not extend to your adult child’s spouse or their children and only applies to medical coverage.
Impact on Health Savings Account
Although beginning January 1, you are allowed to cover your adult children under your medical plan, the tax law did not change the definition of a dependent for HSAs. You could have an adult dependent child under your health plan who is not a dependent for tax purposes. That means you’ll pay a penalty plus taxes if you use the pretax dollars from your HSA to pay health expenses for your older covered dependent.
Here are some steps you can take to avoid tax issues:
- Your covered adult dependent child may open his or her own HSA and contribute up to the allowed family maximum ($6,150 in 2011). To do so, call Aetna Member Services at 800-364-2386 and ask for a Health Savings Account (HSA) Enrollment Form. Follow the instructions on the form. You also may continue to save up to the maximum family contribution amount in your own HSA.
- Cancel the AutoDebit feature if you have it. AutoDebit will automatically use your HSA to pay certain expenses regardless of whose expense it is for. To cancel AutoDebit, follow the instructions on the HSA AutoDebit link on your secure Aetna member website.
The Penalty for Non-qualified Expenses Is Higher
Effective January 1, 2011, the penalty for using your HSA funds for non-qualified medical expenses will be increased from 10% to 20%. Funds used for non-qualified expenses are also subject to income tax. See your secure Aetna member website for a list of qualified HSA expenses or visit the IRS website at www.irs.gov for a copy of Publication 502.
Over-the-Counter (OTC) Medication Will No Longer Be Reimbursed Without an Rx
You will no longer be able to use your health care flexible spending account (HCFSA) or your Health Savings Account (HSA) to be reimbursed for OTC medication unless you provide an Rx from your physician. OTC medications include common cold and allergy formulas, contact lens cleaner, and first aid supplies. Even though you do not need a prescription to purchase OTC drugs and medicines, because of new IRS regulations you will need to send a copy of a prescription from your physician in order to be reimbursed. Read more at this link : /hr/benefits/reenrollment/rxfsaotc/
No Maximum Benefit for Durable Medical Equipment (DME)
The annual benefit limit on DME of $10,000 will be removed effective January 1.
Co-pay for Mental Health Services Will be Lowered
The co-pay for outpatient in-network mental health services under the POS II plan will now be the same as you pay when you see your Primary Care Physician ($15).