Health Care Spending Accounts

Cooper offers pre-tax spending account benefits to pay for eligible out-of-pocket expenses related to health care. Through the Health Care Spending Account (HCSA), you can choose to contribute funds on a pre-tax basis to pay for eligible out-of-pocket health care expenses.

Eligible expenses include copays, deductibles, and your share of expenses under the Medical/Prescription Drug, Dental or Vision plans. Funds to be used for these expenses are deducted from your paycheck in equal amounts each pay period before taxes are withheld, which means you pay less in taxes.

You can contribute from $260 to $5,000 per year to your HCSA to cover eligible out-of-pocket expenses.

Be careful in your planning. You should contribute no more than you expect to pay in 2004 because, under current IRS regulations, any remaining balances left in your account at the end of the year will be forfeited.

In September 2003, the IRS approved over-the-counter drugs for reimbursement through a HCSA. This is especially helpful for people who remedy chronic health problems by regularly taking an over-the-counter medicine. However, there are some limitations. Only over-the-counter drugs purchased to alleviate or treat an illness or injury are eligible.

So what’s covered? Here’s an example:

You purchase an antacid, an allergy medicine, a pain reliever, and a cold medicine from a pharmacy, none of which require a physician's prescription. You also purchase dietary supplements (vitamins) without a physician's prescription to maintain your family’s general health. You submit a claim for reimbursement from your HCSA (with a valid receipt) for all of these expenses, since these items are not covered by the Spectrum health care plan.

The amount you spent to purchase the antacid, allergy medicine, pain reliever, and cold medicine is considered an eligible expense for medical care and is reimbursable through your HCSA. However, the dietary supplements (vitamins) are not considered medical care by the IRS, and are not reimbursable.

For a complete listing of eligible and ineligible expenses log on to www.irs.gov/publications/p502/index.html or call 1-800-TAX-FORM (1-800-829-3676) and ask for Publication #502, Medical and Dental Expenses.

When enrolling in a Health Care Spending Account, ask yourself:

What were my health needs in previous years, and will those needs change next year?
How often am I or my dependents likely to see a doctor or dentist next year?
Am I expecting a child next year?
Do I or my dependents need glasses or contact lenses?
What prescriptions, deductibles and co-pays do I expect next year?

Reimbursement from your Health Care Spending Account

Determine if the expenses for which you would like reimbursement are eligible. In general, eligible expenses include copays, deductibles, and your share of expenses under the Medical/Prescription Drug, Dental and Vision Plans.
File for reimbursement of the eligible expense with ealth Design Plus, the third-party administrator for Cooper's spending accounts, by mailing to them your Explanation of Benefits (EOB) statement. Health Design Plus issues flexible spending account checks twice per month once your claim is approved and processed. You can be reimbursed for any amount up to your annual contribution, regardless of your account balance at the time you submit your claim.

All eligible HCSA expenses incurred within the the current plan year can be submitted for reimbursement. Any expenses billed to you after December 31, for services incurred during the year, can be submitted for reimbursement through March of the following year. You can file for HCSA reimbursements as often as you like.