Private Premium Accounts

Employees paying into some non-group health-related insurance plans

are able to put money aside on a pre-tax basis for their premiums

Employers

A worthwhile benefit

for most organizations

Some employers offer a YourFlex Private Premium Reimbursement Account option as part of their flexible benefit plan.

This program saves employees money if they are paying for a health-related insurance plan personally (a non-group plan). With a Private Premium Reimbursement Account employees may be able to put money aside for their premiums on a pre-tax basis.

In order to participate in a Private Premium Reimbursement Account, the employee has to be the owner of the policy or the policy can cover a qualified dependent. Group policies offered by an employer (or your spouse’s employer) are not “individually owned” and cannot be paid for through this account.

In addition, policies owned by a spouse cannot be reimbursed out of this account. However, plans that the employee owns which cover a spouse and/or children are eligible.

YourFlex can reimburse the employee from a Private Premium Reimbursement Account for premiums that pay for:

• Health Insurance

• Dental Insurance

• Vision Insurance

• Cancer Insurance

• Intensive Care Insurance

• Hospitalization Insurance

• Partner MD and annual doctor service fees

Any other types of insurance may be approved for this account, check with Benefit Solutions for details. Long-term care policies, Medicare Part B & D, disability policies and life insurance are not reimbursable.

Partner MD and any annual doctor service fees are reimbursable only from this account and are not reimbursable through a Medical Reimbursement Account.

Find out more by contacting Benefit Solutions using the Learn More button at the top of this page or email Benefit Solutions at info@yourflex.com.

Benefit Solutions, Inc.

1 Park West Circle

Suite 100
Midlothian, VA. 23114

804-379-0909

Tollfree 800-858-9546

Fax: 804-379-5898

Employees

The basic rules of a

YourFlex Private Premium Account

Proof of payment can include a copy of the check you

are sending for payment or a copy of your charge card bill or bank statement showing payment.

The first time you file for reimbursement, please include a copy of the statement or invoice from the insurance company showing the amount due for the policy and proof of payment. For the rest of the plan year, only proof of payment is required to accompany each Request for Reimbursement. However, if the amount of your premium changes, you will need to provide a new invoice or statement.

IRS regulations require that you not be reimbursed until the services have been received. If you pay for a service monthly, your reimbursement will be processed on the last day the policy coverage would be in effect.

Quarterly and annual payments will be divided by the number of months in effect and posted at the end of each month. For example, if your plan year is April 1, 2010 to March 31, 2011 and you pay your bill to Partner MD in January for the calendar year, the following would apply:

• 9 months of the January 2010 bill (April 2010 through December 2010), and

• 3 months of the January 2011 bill (January 2011 through March 2011).

For Private Premium Reimbursement Accounts, reimbursement is limited to the funds available in your account at all times. Flexible spending account rules apply.

Remember, just like any other Flexible Spending Account, once the plan year begins, you cannot change the amount you contribute to this account unless there is a “Change of Family Status.”

In addition, any amounts left in your account after the plan grace period will be lost. This is sometimes referred to as the Use It or Lose It Rule.

You also cannot terminate from the plan unless there is an appropriate Change of Family Status or you are no longer eligible for this benefit. If that occurs, you are allowed 90 days after the end of the plan year to submit receipts for premiums paid during the plan year for coverage during the plan year.