Agenda Item No. V. B. 4. a.
Washburn University Board of Regents
SUBJECT: Benefit Plan Changes - Washburn University Cafeteria Plan
Currently, employees have the option of setting aside a portion of their salary, pre-tax, in a Health Care Reimbursement Account under section 125 of the Internal Revenue Code. These pre-tax dollars are then used by the employee on reimbursable health care expenses.
Employees participating in the plan may not receive benefits for reimbursable health care services for any plan year in excess of $2,880. With the change in health insurance effective November 1, and the resultant increases in employee out-of-pocket expenses for health care deductibles, co-insurance, and drug costs, it is recommended the maximum amount an employee may set aside be increased to $5,000. The change will result in the following change to Appendix I of the Business and Financial Affairs Handbook:
5.4.2 A Participant may not receive Benefits for Reimbursable Health Care Services
for any Plan Year in excess of
$2,880 $5,000. Participants shall reduce his/her
salary for Reimbursable Health Care Expenses not less than $240 nor more
than $2,880 $5,000 for any Plan Year.
President Farley recommends the Board of Regents approve the proposed increase in maximum employee contributions to a health care reimbursement account.
(date) Jerry B. Farley, President