Since the Flex Spending Account deadline comes first, let me take a moment to refresh your memory. The program has two parts: the Health Care Spending Account (HCSA) and the Dependent Care Advantage Account (DCAAccount).

The HCSA allows you to set aside money to be used to pay for medical expenses that are not reimbursed by your health, dental or vision plan. For example, if you have a child who wears braces, you probably know that Delta pays 50 percent of the Usual Customary Rate (UCR) for orthodontia care. The other 50 percent is your responsibility. Using this example, if the UCR for orthodontia is $4,000, your responsibility would be $2,000. If you were to designate $2,000 into an HCSA, the money would be taken from your paycheck before taxes are taken. Then, when you submit the receipts for the orthodontia care, reimbursement would be immediately sent to you from your account.

Why would you do this? First, you save the taxes on the amount you designate. Second, the amount you designate is taken equally from each paycheck (24 or 26 per year).

Also, you can get your money before the deduction is taken from your paycheck, similar to an interest-free loan.

Are there risks? Yes. If you designate money to be taken and you fail to submit receipts, you “lose” the money you put in. So, before designating money into the program, carefully estimate your anticipated expenses. For a list of sample expenses and program details, call (800) 358-7202 or go to http://www.flexspend.state.ny.us.

The DCAAccount is similar to the HCSA, but with three key differences. First, the program is designed to set money aside to pay for care expenses for a child, elder parent or disabled spouse. Second, the state contributes money — free money — into your account. If you open a DCAAccount, the state contributes: $600, if your salary is less than $30,000; $500, $30,001- $40,000; $400, $40,001-$50,000; $300, $50,001-$60,000; and $200, more than $60,000.

The third major difference: Unlike the HCSA program, you cannot get money from your account until it has been deducted from your paycheck.

Both programs can result in significant savings. Go to http://www.flexspend.state.ny.us for full details and/or enrollment forms.

As always, if you have questions on the benefit programs offered to UUP bargaining unit members, call UUP Member Benefits at (800) 887-3863.

Note: A new state-administered long-term care plan is coming soon. Watch your mail for open-enrollment information.

-- Gail Maloy, Director of Member Benefits and Services

NYSUT catastrophe plan premiums increase

It has become necessary to institute a premium rate increase with the NYSUT $2 Million Catastrophe Major Medical Insurance Plan.

Rates for UUP bargaining unit members, spouses and dependent children will increase by 5 percent. Rates for parents and parents-in-law will increase by 10 percent.

Members who are billed directly for their plan premiums will see the increase with their first renewal on or after July 1, 2001. Those participating through payroll and pension deduction will see the increase with their first deduction taken on or after Sept. 1.

This increase is in direct relation to increases in claim volume and medical costs. Unfortunately, the NYSUT catastrophe plan is not immune to these increases. The largest claim expenses within this plan are for nursing home care, home health care services, medical services, hospital services and prescription drugs.

In an attempt to offset losses experienced by the plan and to stabilize it for the future, the underwriter of the plan, United States Life Insurance Company in the City of New York, moderately increased the plan’s premium rates.

One way to minimize the increase is to pay the plan’s premiums through payroll or pension deduction. Eligible members who use these payment methods receive a 10 percent discount off the plan’s premiums.