Open Enrollment for 2014 Medical Reimbursement Accounts

The NBER offers a Medical Reimbursement Account to our Research
Associates, Faculty Research Fellows, Research Economists and Research
Affiliates. To be eligible you must receive salary payments - income
that is reported on a W-2 form, not on a 1099 - from the NBER during the
plan year. Please note that honorarium payments, which are reported as
miscellaneous income, are not salary payments.

A pdf of this memo is available here.

The plan description can be downloaded here.
The enrollment form can be downloaded here.
The reimbursement request form can be downloaded here.

We are holding an open enrollment period from November 22 - December 18,
2013. If you are interested in participating in this plan, please
complete the Medical Reimbursement Account Enrollment form and return it
to the NBER Human Resources office no later than Wednesday, December 22,
2013.

If you enroll, contributions to your Medical Reimbursement Account will
be deducted from your pre-tax earnings each pay period in 2014. After
you incur eligible expenses, you may submit claims for reimbursement
from your account. By setting aside money for these expenses before
taxes, you may be able to pay less in federal, state and Social Security
taxes. The tax law limits the amount you may contribute to up to $2,500
per year to this account. There is no limit on the total contributions
that an individual may make to Medical Reimbursement Accounts, so even
if you already participate in a similar program at your university, you
may also participate in the NBER plan.

You will be eligible to receive reimbursement for expenses incurred
after January 1, 2014. These expenses can be your own or for another
member of your family - as long as their expenses would qualify as
deductions on your federal tax return.

The “use it or lose it” feature of Medical Reimbursement Accounts means
that contributions that are not used to reimburse medical expenses will
be forfeited at the end of the reimbursement window.

Funds may be used for reimbursement of medical expenses incurred between
January 1, 2014 and March 15, 2015.

Please estimate carefully and do not set aside more than the total of
your anticipated expenses.

Eligible Expenses generally include medical and dental expenses for you
as well as your spouse and your dependent children. Examples of eligible
expenses include:
     * Co-payments, deductibles and other expenses that are not paid by
your medical and/or dental insurance
     * Expenses in excess of the annual or lifetime limits under your
medical and dental coverage
     * Prescription drugs not paid for under any medical plan
     * Hearing aids and batteries
     * Vision care expenses such as eye glasses, contact lenses, and
contact lens cleaning solution
     * Laser vision or eye correction surgery
     * Weight loss programs undertaken at your physician's direction to
treat a specific disease.

Expenses that may NOT be reimbursed from a Medical Reimbursement Account
include:
     * Medical and dental insurance premiums
     * Premiums paid for other insurance, including health and dental
continuation coverage under the provisions of the Consolidated Omnibus
Budget Reconciliation Act of 1986 (COBRA). Although premiums paid for
other insurance may continue to be claimed on your federal income tax
return, they are not eligible for reimbursement.
     * Cosmetic surgery
     * Equipment that is not medically necessary
     * Health club dues or the cost of a personal trainer
     * Teeth whitening or bleaching
     * Tattoo removal
     * Contact lens insurance contracts
     * Safety eyeglasses

This list is not exhaustive. If you have specific questions, please
refer to IRS Publication 502 or contact me at (617) 868-3900 x 484 or
birnbaum_at_nber.org.

As a result of health care reform legislation effective January 1, 2011,
we are only allowed to reimburse the cost of over-the-counter medicines
or drugs if they are purchased with a prescription. This new rule does
not apply to reimbursements for the cost of insulin, which will continue
to be permitted, even if purchased without a prescription. The
prohibition will not affect over-the-counter purchases of medical
devices, bandages, crutches, diagnostic tests, or eyeglasses and contact
lenses.

Receipts for expenses to be reimbursed through a Medical Reimbursement
Account should be submitted to Diane Birnbaum, NBER Human Resources, Rm.
411, 1050 Massachusetts Avenue, Cambridge, MA 02138-5398 or via secure
email at http://www.nber.org/sendthisfile/birnbaum. A copy of our
reimbursement form is attached to this email. All claims must be
accompanied by legible and clearly marked receipts.

Accounts will be held open for submission of expenses until April 15,
2015. If you have incurred expenses, but have not submitted receipts
for reimbursement by April 15th, be sure to request an extension from
the plan administrator by April 15, 2015.

Thank you.

Attached: Medical_Reimbursement_Account_Memo_PI_2014.pdf
                      
Medical_Reimbursement_enrollment_form_2014_PI_version.pdf
                      Flexi_Fringe_Reimbursement_Request.xlsx