Q. What is the total monthly amount I can get reimbursed on?
A. $200.00 per month   Back to Top

Q. Who should enroll?
A. The Health Care Reimbursement Account is beneficial for anyone who has out-of-pocket medical, dental, vision or hearing expenses beyond what their insurance plan covers.   Back to Top

Q. Is this a good program for me?
A. It’s easy to determine if the Health Care Reimbursement Account can save you money. Before the plan year begins you will need to determine your annual election. It’s a good idea to estimate the expenses that you will incur during the year.

You are allowed to include out-of-pocket expenses for yourself, and anyone claimed as a dependent for tax purposes. Review your health care expenses from the previous year. If you find more than $100 or more in recurring or predictable expenses, this account can help you stretch your income.   Back to Top

Q. How does this program work?
A. After you have determined your estimated annual expenses and arrived at an HCRA contribution dollar amount that you are comfortable with, divide this amount by the number of pay periods for the plan year. This amount will be deducted in even amounts from each of your paychecks, and contributed to your Health Care Reimbursement Account. You will need to plan carefully as the IRS requires that any unused money left in your account at the end of the plan year will be forfeited. Knowing out of pocket medical expenses is your best guide.

When you submit an expense for reimbursement, you will need to complete and submit a Request for Reimbursement claim form along with the following: the insurance explanation of benefits (EOB for services covered by insurance) or an itemized bill for services not covered by insurance, complete with the name of the provider, amount of service, and description of the services rendered. Services submitted must be incurred within the plan year. Submit your claim to Northwest Group Services and the claim will be processed on your reimbursement date.   Back to Top

Q. Can I change my election form?
A. Yes, but only if you have a qualifying change in status. This includes, marriage, divorce, death, birth/adoption, or change in employment. However, the adjustment in your election must be consistent with the change of status. All requests must be submitted to your representative for approval before an election change will be permitted.   Back to Top

Q. What are the advantages of the Health Care Reimbursement Account?
A. Most important, the net cost of your required out-of-pocket health care expenses are reduced and made more affordable. The amount you contribute to your HCRA and the amount you are reimbursed from your HCRA are income tax-free. The amount you contribute to your HCRA is not subject to federal, state, or Social Security (FICA) taxes. Generally, this means a savings of 15% to 40% depending on your tax bracket. As a direct result of your personal tax savings, you will actually reduce the cost of required expenses and thus, increase your spendable income.   Back to Top

Q. How can the Health Care Reimbursement Account save me money?
A. Click here to look at an example.   Back to Top

Q. What over-the-counter drugs does the IRS consider eligible for reimbursement?
A. Click here to see a table of common over-the-counter drugs and whether they are eligible or not.   Back to Top

Q. Who should enroll?
A. The Dependent Care Reimbursement Account is generally beneficial for anyone who has qualified dependent and eligible day care expenses.   Back to Top

Q. Who is a qualified dependent?
A. Dependents are defined as children under 13 years of age, or children 13 or over who are physically or mentally unable to care for themselves. A spouse or elderly parent residing in your home who is physically, or mentally unable to care for himself or herself, also qualifies.   Back to Top

Q. What expenses are eligible?
A. Expenses incurred which allow you (and your spouse, if married) to work, look for work or attend school as a full-time student are eligible. Below are expenses which qualify.
*Day care facility fees (excluding transportation, lunches, education services)
*Before-school and after-school care
*Local day camp
*In-home baby-sitting fees (income must be claimed by your care provider)
*Nursery school and preschool   Back to Top

Q. Who is an eligible provider?
A. You may use any care provider you choose. The care provider must meet the business and licensing requirements of your state. The services may be as informal as care provided by your neighbor, as long as the provider claims the money received for services as income when determining their taxes at the end of the year. You will also need to obtain the provider’s federal identification/Social Security number for inclusion on your own tax filing form.   Back to Top

Q. How does it work?
A. The program is simple. Determine how much money you wish to place in your account based on your estimate of Dependent Care expenses for the upcoming plan year. Keep in mind the time in which your dependent is not receiving care, such as vacation or sick time. The amount to be deducted from your pay cannot be greater than your income or that of your spouse, whichever is lower. The maximum contribution allowed by the IRS is $5,000(or $2,500 each for married individuals filing separate returns.) You will need to plan carefully as the IRS requires that any unused money left in your account at the end of the plan year will be forfeited. Once you arrive at a dollar amount that you are comfortable with, divide this amount by the number of pay periods in your plan year. This amount will be deducted on a pre-tax basis each pay period, and contributed to your Dependent Care Reimbursement Account.

When you have expenses to be reimbursed, simply complete a Request for Reimbursement claim form indicating that the expense has been incurred during the plan year, and submit this request along with a bill or itemized receipt for the provider. A copy of the bill or an itemized receipt are good examples of proof of your dependent care expenses. That’s it! Submit it to Northwest Group Services and your claim will be processed on your next reimbursement date. Accordingly, you will receive dependent care reimbursement up to the amount that has been deducted from your earnings, and contributed to your Dependent Care Reimbursement Account.   Back to Top

Q. What over-the-counter drugs does the IRS consider eligible for reimbursement?
A. Click here to see a table of common over-the-counter drugs and whether they are eligible or not.   Back to Top

Q. What expenses are eligible?
A. Click here to find out what Health Care/Medical expenses are eligible.   Back to Top

Q. Can I change my election form?
A. Yes, but only if you have a qualifying change in status. This includes, marriage, divorce, death, birth/adoption, or change in employment. However, the adjustment in your election must be consistent with the change of status. All requests must be submitted to your representative for approval before an election change will be permitted.   Back to Top

Q. Do I have to participate in both accounts, or can I participate in just one?
A. These two accounts are separate plans. You may voluntarily choose to participate in either one of the accounts…or both. The choice is yours!   Back to Top

Q. Why do amounts that are unused in my account at year-end have to be forfeited?
A. The Internal Revenue Service (IRS) requires that these unused dollars be forfeited as a condition of offering these benefits. Since the money is tax-free, the IRS view your election commitment as just that…a commitment to fully fund your account for your entire plan year election. This is true whether or not you actually use the money. Keep in mind that it is not the Company’s or the IRS’s intention or wish that you forfeit money. We want all employees to fully take advantage of the valuable benefit and to use al the money that’s deposited to your account(s). So plan conservatively.   Back to Top

Q. Where do I get claim forms?
A. A claim from will be sent to you once you enroll. Then, every time you submit a claim, a new claim form will accompany your reimbursement check. If you need additional forms, or you lose your form, simply call Northwest Group Services at (888)808-3008. They will send you a form. Or, simply click here to download a claim form instantly   Back to Top

Q. Where do I go for answers to my questions, or when I have problems or concerns about my reimbursement accounts?
A. Call Northwest Group Services at (888)808-3008. Your account representative will assist you with questions or problems that you may experience from time to time. Or contact us via email.   Back to Top

Q. Who is Northwest Group Services?
A. Northwest Group Services is a nationally recognized employee benefits consultant and administrative management firm. They specialize in the design and administration of plans like your Reimbursement Account. Northwest Group Services will be processing all claims, answering your questions, and helping you in any way they can.   Back to Top

Q. What happens to unused monies in my account if I retire or terminate?
A. The IRS requires that any unused monies left in your account must be forfeited…so plan conservatively. Certainly, if you plan on leaving the Company for any reason, you may wish reconsider your choice to participate. If, however, you choose to participate and leave prior to year-end, then you can continue to have access to your account deposits, by continuing to submit claims incurred (with a date of service) prior to your employment termination date. You have until the end of the plan year to do so. Additionally, if you participate in the Health Care Reimbursement Account, you may be eligible to continue your participation under COBRA. COBRA allows you to continue to make after-tax contributions to your account, and also to submit reimbursement requests for claims incurred after your employment has ended(during your COBRA period of coverage).   Back to Top

Q. How about if I take a leave of absence?
A. The rules for leave of absence are outlined in your company’s Summary Plan Description. Keep in mind that a leave of absence is considered by the IRS and the Company as a family or employment "change of status." Events such as a leave of absence may allow you to change your elections in a manner consistent with the reason for the leave.   Back to Top

Q. Do I have to re-enroll during every open enrollment period?
A. The IRS requires that employees make new elections for each and every plan year. Regardless of the enrollment process adopted by the Company, it is important to review your expenses each year to make sure that your election is appropriate, based on the actual expenses you expect to have.   Back to Top

Q. Is the DCRA or the The Federal Income Tax Credit for Dependent Care Expenses a better deal for most people?
A. The decision between these two income tax reduction alternatives is not always clear, because the results are based on your own personal situation. We recommend that you talk to your accountant or tax advisor to estimate which method is better for you. You may wish to refer to IRS Publication 17 and 503 for additional information regarding the federal income tax credit.   Back to Top

Q. Will I be able to use my Explanation Of Benefits statement from the company's Group Health Plan as proof of a claim under the HCRA?
A. Yes. Your Explanation of Benefits statement, often referred to as an EOB, will satisfy proof of your claim. Remember, an EOB is any statement received by you from the Company’s Health Plan which identifies benefits paid and not paid under the terms of the health paln. It is the unpaid benefits that may be eligible for reimbursement from the HCRA.   Back to Top

Q. Will I have to actually pay an expense, i.e. my deductible or my share of a co-payment, in order to be eligible for reimbursement?
A. No. Proper documentation that must accompany a claim for reimbursement must reflect obligation to pay the expense, however a paid receipt is not necessarily required. Eligibility for reimbursement is based on the date of service, not the date of payment.   Back to Top

Q. If I have no EOB statement, or my expense is for a service which is not covered by any of my benefit plans, what proof of claim do I use under the HCRA?
A. Northwest Group Services does not necessarily require a EOB statement, althoug attaching an EOB to your claim certainly minimizes any potential questions and delays in processing your claim. However, if you do not have an EOB statement, you must submit an itemized receipt for services, which reflects the type of service, your responsibility for the portion of costs not covered by insurance, and the date of service.   Back to Top

Q. Who is a qualified dependent?
A. If a person qualifies as your dependent for federal tax purposes, they qualify as a dependent under the HCRA. This definition may be different from that provided under the Company’s other group benefit plans. Special rules for dependent status apply to the DCRA. The requirements are specified by the IRS, and are noted in your DCRA brochure.   Back to Top

Q. I notice that the brochure states several times that I may need to consult a tax advisor. Why?
A. The benefit derived from participation in the Health Care or Dependent Care Accounts is tax savings. With regard to your taxes, they are your responsibility, and involve much more than simply multiplying a tax reate times your wages. The Company and Northwest Group Servcices are in no way staffed to properly handle personal tax questions. In order to maximize your tax savings from these accounts, and to ensure that they fit with your personal income tax situation, you are encouraged to consult with your tax adivisor if you have specific questions or concerns prior to enrollment.   Back to Top

Q. How frequently will I receive account statements?
A. In addition to your reimbursement check stubs from Northwest Group Services, which reflects all account activity and balances, you will receive three statements during the course of the plan year. Additionally, you may call Northwest Group Services toll-free at (888) 808-3008 at any time for an updated account activity summary during the plan year.   Back to Top