Frequently Asked Questions about the Flexible Reimbursement program
If I elect to redirect my compensation, how will this benefit me?
Since FLEX 125 uses pre-tax dollars for reimbursement of personal expenses, you reduce your income taxes and Social Security and Medicare taxes by reducing your taxable salary. Your spendable income will increase by the amount of tax savings.
Why should I participate in the Medical Reimbursement Plan if I already have medical insurance?
The Medical Reimbursement Plan offers reimbursement of medical care expenses NOT covered by insurance: for example, eye exams, glasses, contact lenses, co-pays for office visits and prescription drugs, orthodontics and dental visits, and most other medical expenses not covered by your major medical. Over-The-Counter medications no longer need a prescription. Vitamins and supplements still require a prescription. Menstrual products are now reimbursable.
What if I have an HSA?
HSA participants are not eligible for the full Medical Reimbursement Plan . Ask your HR representative if an alternative is offered.
Will I be better off participating in Daycare Reimbursement instead of claiming it on my income tax?
It depends on your situation. Please contact your tax advisor to help decide what is best for you.
Is there a cap on the amount of money I can direct to my account?
Yes. The limit you can defer for the Medical Reimbursement Plan is set by your employer. The maximum for the Daycare Reimbursement Plan is $5,000.
Can I change or revoke my elections during the plan year?
In general – no. However, there are exceptions for a change in family status. This includes marriage, divorce, death of a spouse or child, birth or adoption of a child, and termination of a spouse’s employment.
What happens if I terminate my employment or I become ineligible to participate in FLEX 125 for any other reason?
You may terminate the compensation reduction agreement. If so, you should contact the HR Representative to determine how long you have in which to file claims. Expenses must have been incurred while you were still employed. Coverage may continue through COBRA, if you elect.
Are there any other negatives that I should know about?
Yes. You are not paying Social Security tax on that portion of your income that has been redirected, so your Social Security benefits may be slightly reduced.
How do I get reimbursed for my expenses?
A claim form with receipts should be submitted to AIM when you need reimbursement. You may fax your claim form and receipts to 502/426-6569. If you have a scanner and email, you may send your claim and receipts to claim@aimadministrator.com. Our mailing address is AIM, 10353 Linn Station Rd, Louisville KY 40223
How often will I receive a check?
Claims are processed and mailed on twice weekly unless there is a holiday. Please allow ample mailing time to receive your check.
I have other questions not addressed here.
Call your Benefits Administrator at AIM. They can be reached at 502/426-1235.