SouthFlex, a flexible spending accounts plan, is an employee benefits program designed to
increase your disposable income by reducing the amount of taxes you pay. This program allows
the use of pre-tax dollars to pay for qualified dependent/child care expenses and eligible health
care expenses, including dental expenses, which are not reimbursed by USA Health & Dental
Plan or any other insurance plan.
You establish your account(s) by electing an annual amount to be deducted from your paycheck
and deposited equally over 12 or 26 pay periods, depending on your monthly or biweekly pay
status. As you incur eligible health care or dependent care expenses, you will be reimbursed
from your appropriate account(s) using your “before tax contributions.” You do not pay social
security taxes, federal income taxes or state income taxes on either the amount you contribute to
an account(s) or the amount reimbursed to you from an account(s).
Blue Cross and Blue Shield of Alabama is the Plan Administrator for SouthFlex. Blue Cross
administration of SouthFlex assists the University in complying with the privacy requirements
of HIPAA and allows for automatic reimbursement of eligible health care expenses incurred by
USA Health & Dental Plan members and provided by Blue Cross PMD providers. Additionally,
Blue Cross administration will allow for direct deposit of SouthFlex reimbursements.
New employees interested in participating in SouthFlex must submit a completed enrollment
form to Human Resources within 30 days of employment. Current employees must enroll each
year during Open Enrollment in November for participation in the following calendar year.
The maximum annual employee salary reduction contribution allowed for the Health Care
Flexible Spending Account increased from $2,500 to $2,550 effective January 1, 2015.
The maximum annual employee salary reduction contribution allowed for the Dependent Care
Flexible Spending Account remains at $5,000 or $2,500 for married taxpayers filing separate
University of South Alabama
650 Clinic Drive
TRP III, Suite 2200
Mobile, AL 36688-0002