Effective January 1, 2011, employees may elect to cover eligible dependents in their NYU employee medical plans up to age 26. NYU is also making this extension available for dental and vision coverage.
During Open Enrollment, which will be held from October 11 through November 11, 2010, you may enroll (or re-enroll) your dependent children who were previously taken off your coverage due to age or student status. A dependent child will be eligible for coverage regardless of his/her student status, marital status, or employment status. There is no requirement for a dependent to live with or receive support from the employee to be eligible for coverage under the plans.
Dependent children can remain on their parent's plan until the end of the month in which they turn 26, and then will become eligible for COBRA, even if previously covered through COBRA.
Be sure to consult the 2011 Open Enrollment Guide, which will be distributed before Open Enrollment begins on October 11, for important information on enrolling your dependent for coverage effective January 1, 2011.
Effective January 1, 2013, the maximum amount that you can contribute to a Health Care FSA is $2,500. You may elect to contribute up to $5,000 annually to a Dependent Care FSA in 2013, unchanged from 2012.
Effective January 1, 2011, the cost of over-the-counter (OTC) drugs will not be eligible for reimbursement under the Health Care Flexible Spending Account (FSA). Insulin and OTC medicines prescribed by a doctor are exceptions.
This change only affects OTC medicines, not other medical products such as bandages, saline solution, reading glasses, etc., which will continue to be reimbursed tax free.
The Health Care FSA Plan is a "use it or lose it" plan, and any unused portion of your account at the end of the plan year will be forfeited. Be mindful of the new rules when electing your monthly FSA contribution for 2011.
Click on www.irs.gov for "Guidance Explaining 2011 Changes to Flexible Spending Arrangements" and click on the link at the bottom of the page for "Questions and Answers on Over-the-Counter Medicines and Drugs."