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 * From : || Byron Giese  ||
 * Subject : || KEA: Info on the 'Flex" plan ||

Sun, Oct 24, 2010 03:59 PM

It's called "The SISC Flex Plan", and it's year is the calendar year (Jan to Dec) so if you want to start now, you've got perfect timing. Here's what it is in a nutshell: A person can have money moved from the paycheck, into the 'Flex' account before taxes are taken out. This means, at the end of the tax year, the amount of income you pay taxes on (and the resulting tax bracket it places you on) does not include that amount you put in your Flex account. This lowers your both your tax bracket and the dollar amount that gets taxed. It is not hard to sign up for it or to use it, and there are considerable tax benefits, but there is one big downside:

Your Flex account balance is zero at the start of every year. (If you don't spend it all, it gets sucked up by.... someone else) So, the amount you decide to put into that account should be an amount that you are quite sure you'll use. (I'd suggest starting low)

What can you use the money in you Flex account for? The short answer is: anything medical. Anything SISC would bill you for (co-pays, deductible, co-insurance) and lots of stuff you buy at the store with your 'Flex' credit card, from Tylenol to throat lozenges(there's A LOT of stuff) A complete list of items that are 'eligible expenses' is on SISC's web site: @http://sisc.kern.org/flex/ There's also a 'frequently asked questions' section and access to your account information.

It appears that this plan has considerable monetary benefits and is well worth the time to set-up and use. It also automatically sets money aside for medical expenses. The danger of 'use it or lose it' is easily avoided by (1) shooting low in the first place and (2) checking your balance in December - if there's a balance, use it all by stocking up on things you'll use anyway. I've put some more info. on the web site, and Cathy Wilder is not only who you'd contact to set it up, but she does this plan and has answers about how it works. Everyone I've spoken to about this plan speaks well of it. It does require some work on your side, but it does save money.

Lastly, this Flex plan is totally separate from your policy plan choice. I'm just providing the info know cuz (1) it's the right time of year and (2) Let's get all this insurance stuff done all at once.

Byron