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Benefits

Brown Flex Medical Reimbursement Plan (MRP)

DEFINITION

The Medical Reimbursement Plan, offered under the Brown University Flex Plan, allows you to set aside a part of your salary on a pre-tax basis to reimburse health and/or dental expenses not covered by an insurance plan.

For the current plan year (1/1/2007 - 12/31/2007) or upon initial eligibility, you may elect a minimum of $240 up to a maximum of $5,000 (prorated for eligible employees who are hired after the beginning of the plan year) for eligible expenses incurred by you or your eligible dependents during Year 2007.

ELIGIBILITY

Regular faculty, staff, and members of the Public Safety bargaining unit who work 50+% time (based on academic year), and SEIU and USAW-RI bargaining unit members who work 25+ hours/week are eligible to participate in the Medical Reimbursement Plan under the Brown University Flex Plan.

You may claim expenses incurred by you, your spouse, and eligible dependents. A person generally qualifies as your dependent if: (1) that person lives with you for the entire year as a member of your household (unless a full- time student under age 24) or is closely related to you; and (2) that person is a US citizen or resident, or a resident of Canada or Mexico for some part of the calendar year in which your tax year begins; and (3) you provide more than half of that person's total support for the year.

For additional information about dependents, including children of divorced or separated parents, you may wish to review Section 152 of the Internal Revenue Service Code or consult with your tax advisor.

WHAT IS COVERED?

Some covered expenses* for medical reimbursement include the following:

- Ambulance hire - Eye exams - Nurses' expense and board
- Braille books/magazines - Eye glasses and contacts - Nursing care
- Crutches - Hearing exams - Smoking cessation programs
- Difference in cost between private & semi-private hospital rooms - Health and dental copayments (e.g., the 20% payment you make for certain medical services) - Prescriptions, and other eligible expenses for over-the-counter medications
- Electric wheelchair - Health and dental deductibles - Weight loss programs prescribed
to treat a specific medical condition

* to the extent that these services are not reimbursable under another policy, such as your health coverage from the University

Covered expenses must be incurred during the plan year on or after your date of eligibility. Under IRS regulations, expenses are incurred when the service is provided, not when the bill is paid.

There are expenses that are specifically NOT covered. A few examples are: the cost of health or dental insurance premiums, claims which are reimbursable under another policy, Medicare Part B premium costs, life insurance and income protection policies, illegal operations, travel for rest or change, and medically unnecessary cosmetic surgery. Fees for weight loss programs to benefit general health and health club dues are also ineligible for reimbursement.

MINIMUM / MAXIMUM ALLOWABLE CONTRIBUTION

You may elect to set aside a minimum of $240 up to a maximum of $5,000 per year in your Medical Reimbursement Plan. If you are hired after the beginning of the plan year, your maximum will be prorated to $416.67/month for each full month in which you are eligible during the remainder of the plan year. Brown will deduct your elected contribution in equal amounts among the paychecks you are normally scheduled to receive.

Please note that your MRP is an election that may be changed during the year if you experience a qualifying event. The change that you make, however, must be consistent with the qualifying event.

HOW TO GET REIMBURSED

You may submit claim forms for eligible expenses incurred in calendar year 2007, throughout calendar year 2007, and up until March 15, 2008 by April 15, 2008 to:

Altus Benefit Administrators
PO Box 1643
Providence, RI 02901-1643
Fax: 401-457-7266

"USE IT OR LOSE IT"

You should budget your expenses carefully because, under IRS rules, Brown cannot refund the amount that remains in your 2007 Brown Flex account at the end of the MRP grace period on March 15, 2008 unless you claim all expenses by April 15, 2008. If you do not claim these expenses by April 15, 2008, you will lose the unspent funds that you set aside.

 

QUESTIONS

To obtain more information, call Altus Benefit Administrators at 1-800-371-7542.

 This summary is for informational purposes only and does not constitute a legal contract. In cases where disputes occur, the Plan Document will be the ruling and binding instrument.