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.
Effective January 1, 2013, the Health Care Reform Act reduced the employee salary reduction contribution limit from $5,000 to $2,500 annually for the Health Care Flexible Spending Accounts.
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 returns.