Special Enrollment for Medical Flexible Reimbursement Accounts

State employees have been offered a Special Enrollment period from June 7 until June 22 to enroll in or make changes to a Medical Flexible Reimbursement Account. Guidance from the U.S. Internal Revenue Service (IRS) on May 30 and conversations between the Department of Human Resource Management and IRS officials confirmed that the federal health reform limit of $2,500 for Medical FRAs will not impact the state health benefits program until July 1, 2013. Therefore, for the upcoming plan year, the maximum Medical FRA contribution will be $5,000 rather than $2,500.

Communications from the Department of Human Resource Management for the May Open Enrollment period were based on information available at the time. As a result of the IRS notice, and to give as much flexibility to employees as possible, the Special Enrollment will be held for employees to:

Enroll in a Medical FRA if they did not do so during May Open Enrollment

Increase, reduce or cancel a Medical FRA set up during May Open Enrollment; or

Take no action and keep the Medical FRA election made for the July 1, 2012 plan year.

An email from DHRM will be sent to all employees eligible for health care with an email address on file as of June 3.

EmployeeDirect will not be available for Special Enrollment elections. To enroll in or make changes to a Medical FRA during the Special Enrollment, employees should download and print the State Flexible Benefits 2012 Special Enrollment Form found on the DHRM website at http://www.dhrm.virginia.gov/documents/StateSpecialEnrollmentForm2012.pdf. The enrollment forms should be submitted to Human Resources by 5:00 p.m. on Friday, June 22, 2012.

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