Connections November 2010

Birthdays Susan Williams - November 4 Ashley Jones - November 5 Susan Fiedler - November 8 Kevin Bidtah - November 10 Angela Palmer - November 10 Jessica Lehsten - November 11 Monica Wells - November 11 Jannelis Gonzalez - November 13 Shari DeMarco - November 18 Elisa Luciano - November 23 Virgen Reyes-Torres - November 27

Anniversaries Monica Wells - 1 year Aracely Rodriguez-Perez - 4 years Brian Planty - 4 years Courtney Coburn - 4 years Cortney Anderson - 4 years Bridget McClain - 8 years Carolee Corbitt - 11 years Your Continued Dedication and Hard Work Are Noticed and Appreciated!

– The Management Team

CONNECTIONS CONTRIBUTORS EDITOR KIM LUANGPAKDY PUBLISHER JOHN CAROCCI LAYOUT JOHN CAROCCI CONTRIBUTORS KIM LUANGPAKDY LIYA MOOLCHAN, GARY WILLIAMS

We ask you to Dine Out for Life in April, and walk with us for AIDS Walk in May. It’s been a while since we’ve asked for your help! Now that the year is coming to a close, we are asking for you to donate your efforts and energy one last time! Our 14th Annual Holiday Gift Wrap fundraiser runs from November 26 until December 24, and we need your help to make it a success! The Holiday Gift Wrap relies on the efforts of nearly 200 community volunteers who wrap thousands of gifts every holiday season. As the sole op-

erator of the Boulevard Mall’s Gift Wrap kiosk, AIDS Community Services raised $9,300 in 2009! We need your help to raise even more in 2010. All you need to volunteer is a festive spirit and some good holiday cheer. Shifts run from 11:00 a.m. – 2:30 p.m., 2:00 p.m.

– 6:30 p.m., and 6:00 p.m. – 9:00 p.m. (hours increase as holiday approaches). Don’t know how to wrap? No worries! We give you a crash course in wrapping gifts of all shapes and sizes. Contact Kim at extension 315 to schedule a gift wrap shift today!

C

DIABETES

is the 7th leading cause of death in the United States among adults age 25 and over, and nearly 1 in 4 people over 60 have diabetes.

Even more people suffer from pre-diabetes, and which means they have an increased chance of developing Type 2 diabetes within the next 10 years. Diabetes often goes undiagnosed because many of its symptoms seem so harmless or don’t occur until the disease has progressed. Common symptoms of Type 2 diabetes include frequent urination, unusual thirst or hunger, weight loss, extreme fatigue, blurred vision, tingling/numbness in the hands/feet and recurring skin, gum, or bladder infections. Contact your physician if you’re experiencing any of these symptoms. The good news is that studies consistently indicate Type 2 diabetes can be delayed, prevented and even reversed with close attention to diet and exercise.

Start making changes in your lifestyle today. Employing these tips will help decrease your chances of being among the 1.6 million people diagnosed each year with diabetes: Get an extra hour of sleep – sleep deprivation causes an increase in cortisol levels, which interfere with the body’s ability to produce insulin. Get most of your protein from poultry rather than red meat. Consume sweet fruits – instead of grabbing a candy bar or cookies, keep grapes, strawberries, melon or bananas on hand. Consume more fiber rich foods – choose whole grain alternatives whenever possible. Eat magnesium rich foods like nuts, beans and seeds which help the body produce insulin. Calcium rich foods also improve the body’s ability to produce insulin. Eat oily fish twice a week – it’s full of healthy fat. Avoid soda, which is full of sugar and empty calories, and causes a spike in glucose levels. Pass on the peas, corn, carrots, and other starchy vegetables. Focus instead on leafy greens. Exercise, exercise, exercise! Aim for 30 minutes of moderate activity 3 to 5 days a week.

This information provided courtesy of your Employee Assistance Program. For confidential asC sistance, please contact 716-681-4300.

Chestnut Ridge’s fall foliage provided a colorful backdrop for the Divisions of Administration and Health Promotion Services Retreat held on October 22. Staff arrived at 9:00 a.m. to begin a full day of workshops and activities designed to improve the way we interact and work as a team, both within our own divisions as well as throughout the agency. Morning activities were followed by a delicious pot-luck lunch, and a chance to explore the park before gathering back at the lodge for the afternoon session. Staff left the retreat well-fed, revitalized, and armed with the skills needed to work together to carry out the agency’s mission. - John Carocci

A Health Savings Account (HSA) is an account that can be funded by your tax-exempt dollars, your employer, or both, to help pay for eligible medical expenses not covered by an insurance plan. This includes the deductible, coinsurance, and even in some cases, health insurance premiums.

Who is eligible for an HSA? Anyone who is/has been: • Covered by a High Deductible Health Plan • Not covered under another medical health plan that is not a High Deductible Health Plan • Not entitled to Medicare benefits • Not eligible to be claimed on another person’s income tax return • Not received any Veterans Administration health benefits in the last three months • Not on Tricare (military healthcare) • Not enrolled in Medicaid What is a High Deductible Health Plan (HDHP)? An HDHP is a plan with a minimum annual deductible and a maximum out-of pocket limit as listed below. These minimums and maximums are determined annually by the Internal Revenue Service (IRS) and are subject to change.

How does an HSA work?

It is intended to cover serious illness or injury after the deductible has been met. The HSA pays for out-of-pocket expenses incurred before the deductible is met.

What are the steps in an HSA? How do I pay my physician or network facility at time of service with HAS dollars?

You may request that the network provider submit your claim to your health plan. You should make sure that your provider has your most up-to-date insurance information.

Once the medical claim has been processed, if applicable, out-of-pocket expenses will be billed. At this time you may choose to use your HAS debit card or HSA check* to pay for any out-of-pocket expenses, or you may choose to write a personal check to receive your reimbursement at a later date. You should always ask that your medical claim be submitted to the health plan before you seek reimbursement from your HSA. This procedure will ensure that provider discounts are applied. Also, remember to keep all medical receipts and Explanation of Benefits (EOBs).

How do I manage my HSA? The HSA account is your account and the HSA dollars are your dollars. As the account holder or HAS beneficiary, you manage your HSA account.

You may choose when to use your HSA dollars or when not to use your HSA dollars. HSA dollars pay for any eligible expense. Most commonly, the HSA account holders will pay their out-of-pocket expenses (i.e. deductible and coinsurance) associated with their high deductible health plan with their HSA dollars.

What expenses are eligible for reimbursement from my HSA? HSA dollars may be used for qualified medical expenses incurred by the account holder and his or her spouse and dependents. Qualified medical expenses are expenses for medical care and are outlined within IRS Section 213(d). In summary, the IRS Section 213(d) states that “the expense has to be primarily for the prevention or alleviation of a physical or mental defect or illness.” In addition to qualified medical expenses, the following insurance premiums may be reimbursed from an HSA: health insurance premiums while receiving unemployment benefits, COBRA premiums, qualified long-term care premiums* or any health insurance premium paid other than for a Medicare supplemental policy by individuals 65 and over

What expenses are NOT eligible for reimbursement from my HSA? • Premiums for Medicare supplemental policies • Expenses covered by another insurance plan • Expenses incurred prior to the date the HSA was established 1.

2.

3.

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5.

Employee and/or employer funds HAS account.

Employee seeks medical services.

Medical services are paid by the HDHP, subject to a deductible and coinsurance.

Employee may seek reimbursement from their HSA account for amounts paid toward deductible and coinsurance.

Deductible and out-of-pocket maximum are fulfilled.

Employee may be covered for all remaining eligible expenses, preventive care may be covered at 100% (subject to plan design; check Summary Plan Description).

What is a deductible? It is a set dollar amount determined by your plan that you must pay either out-of-pocket or from your HAS account, before insurance coverage for medical expenses can begin.

How much can I contribute to an HSA? As noted by federal law, the annual contribution limits for 2010 are $3,050 for individual coverage and $6,150 for family coverage. Individuals age 55 or older may be eligible to make a catch-up contribution of $1,000.

When do I contribute to my HSA account, and how often can I contribute? You, your employer or others can contribute to your HAS account through a payroll deduction(s) or as a lump sum deposit. You can contribute as often as you like, provided that the annual HSA statutory contribution amount does not exceed $3,050 for individual coverage or $6,150 for family coverage in 2010. Individuals that are age 55 or older may be eligible to make additional contributions.

What is the difference between an HSA and Flexible Savings Account (FSA)? An HSA can roll-over unused funds from year to year. An FSA cannot roll-over unused funds from year to year.

Can I contribute to an HSA and a FSA in the same year?

Yes, a “limited FSA” is permissible. A limited FSA only allows reimbursement of expenses that are not eligible for payment under the HDHP or HSA. For example, an employer may establish a limited FSA to allow employees to contribute pre-tax dollars to an account which only reimburses expenses for dental services.

What if I enroll in an HSA in the middle of a year? If you enroll in an HSA in the middle of a year, you are allowed to make a full year’s contribution, provided that you remain covered by the HSA for at least the 12-month period following that year.

Can I use the money in my account to pay for my dependents’ medical expenses? You can use the money in the account to pay for medical expenses of yourself, your spouse, or your dependent children. You can pay for expenses of

your spouse and dependent children even if they are not covered by your HDHP. Can I use HSA dollars for non-eligible expenses? Money withdrawn from an HSA account to reimburse non-eligible medical expenses is taxable income to the account holder and is subject to a 10% tax penalty, unless over age 65, disabled, or upon death of the account holder.

When can I start using my HSA dollars? You can use your HSA dollars immediately following your HSA account activation and once contributions have been made.

What if I have HSA dollars left in my account at yearend? The money is yours to keep. It will continue to earn interest and will be available for you and your healthcare costs next year.

How do my remaining HSA dollars roll over at year end?

Any dollars left in your HSA account at year-end will automatically roll over into next year’s HSA account (may vary depending on HSA plan design and benefit plan design).

What happens to my HSA dollars if I leave my employer?

The funds are yours to keep. You may leave your funds in the current HSA account, transfer your funds to an HSA with your new employer; or transfer your funds to another qualifying account within 60 days.

What happens when my HSA funds run out? You may be financially responsible for any eligible medical expenses that fall within the coverage gap.

What happens to my HSA when I die? If you are married, your spouse becomes the owner of the account and can use it as if it were his or her own HSA. If you are not married, the account will not be treated as an HSA upon your death.

The account will pass to your beneficiary or become part of your estate (and be subject to applicable taxes) Can my HSA dollars be used for retirement health care expenses? Yes, for expenses eligible for reimbursement. C For more information contact Human Resources!

How well do you know your co-workers? Maybe not quite as well as you think you do! Each month, Connections digs deeper to bring you 10 Fun Facts about your fellow Evergreen Association employees. If you’d like to be featured in a future edition, e-mail your 10 Fun Facts to John Carocci. They can be big, small, or anywhere in between, and there doesn’t have to be 10, as long as they’re fun and they’re facts!

This Month: Peter Hubbard & Jennifer DeMarsh

Peter and Jennifer 6.

7.

1. I love the Rocky Horror Picture Show and recently attended the interactive experience at the Riviera Theater where I was on stage wearing tighty-whities and a lab coat (it went over well - I was a finalist in the costume contest).

2. I am the middle child of 3. I have an older brother and a younger sister.

3. I moved back to Western New York in April of this year after living in Michigan for 3 years.

4. I attended graduate school at Michigan State University where I studied Community Psychology with a focus on HIV prevention and program evaluation.

5. I was a volunteer with ACS when I was a mere youth (age 15). Oh, how time flies!

6. I also have a part-time job working with the Niagara Falls Boys & Girls Club where I teach elementaryschool children about healthy development, civic engagement and youth empowerment.

7. I still refuse to believe I’m an adult (seriously, when did THAT happen?!?) and thus always have a blast with the children I work with at my part-time job!

8. I am something of a geek… which I totally embrace.

I actually really love statistics. The thought of a big dataset with lots of variables really steams my pot!

9. I love shopping for clothing and the hunt for the best deal… and I’m totally out of closet space. (Good thing I came out years and years ago!!).

10. I am also totally out of interesting and witty facts about myself right now.

1. When I’m alone and stressed out, my main form of relief is krumping. It really does a body good. (It’s sweeping the nation! All the kids are doing it!) You should try it! (Although my mom yells at me for doing it because of what it does to the knees and the back.) (before y’all try to make a dirty joke about this it is a form of dancing – check out the movie RIZE) 2. Because of the fact that I am extremely messy and tend to “nest” everything, many people refer to me as “Hen.” (You may also feel free to call me bird, chicken, poult, grouse, or any other appealing birdy nickname.)

3. Before I was lucky enough to land a job at ACS, I was a teacher in the Buffalo schools for seven years. My resume consists of Turner Carroll, Lafayette, Riverside, South Park, Burgard, and Bennett. I have hundreds of kids in this city who call me mom and can’t seem to leave the house without running into at least one of them.

4. Because of number 3 (and many many other reasons) I have made the personal choice not to have children of my own. The world is already extremely overpopulated and there is already “not enough to go around.” Children are absolutely wonderful to me as long as I can hand them back to the person who made them at the end of the day!

5. Back in my teaching days, I also performed as a rapper named REDDHENN. I jumped around stage in a red and black running suit and a giant fake fur

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chicken head, complaining about all the problems made by those pesky humans.

Nowadays I have mellowed out and most of what I sing is blues and gospel. My producer says I am a cross between Leadbelly and Mavis Staple. He couldn’t possibly pay me a higher compliment!

I am lucky to be in love with the sweetest man in the universe! (unless of course he is hungry or tired or…) He is truly the best man ever. I call him my Squishybear.

The BVM is my hero. She was human, she could have been stoned to death for what she did, she loves and forgives everyone and has made many an unconventional pathway to spirituality. She inspires my best choices and applies salve to my worst ones.

She is my ultimate role model.

When I was 11 I found a severed cow head in my back yard. I didn’t eat meat again until I was 19. I lived next to a very careless farmer who had questionable slaughtering practices. It was not uncommon to walk outside on a bright Saturday morning and see my dog running around dragging behind her several feet of intestines…

I grew up in Palmyra New York. Palmyra is the home of the Hill Cumorah. This is where the Mormon religion was started. Every year they reenact the whole thing on a giant sound stage with thousands of brilliantly costumed actors pantomiming to the same soundtrack cassette tape that they have been using since the seventies. Mormon women sign their kids up to be in the pageant when they are still in the womb. It is a tiny village. Young people’s main forms of entertainment are mailbox baseball and tipping cows. I moved to Buffalo because it was the biggest, funnest most happeningest city I had ever seen.

This should give you some context…

Submitted by Gary Williams According to the US Bureau of Travel Statistics, Americans will take approximately 2.6 billion long distance trips this year. With so many of us on the road, it’s advisable that leisure and business travelers become more aware of their increased exposure on the road and learn how to protect themselves from becoming victims of identity theft. Here are some tips to consider. 1. Protect your home from burglars and identity thieves before you leave. Have your mail collected or held at the Post Office, try to have someone visit and turn lights on and off, and don’t leave financial documents lying in plain view. 2. Avoid posting travel plans online via Twitter, Facebook, MySpace or your blog. Thieves can use this information to target your empty home. 3. Install anti-virus and anti-spyware software on your laptop computer.

4. Do not assume public wireless hotspots are secure.

Ensure you are using ecryption to scramble communications over a public network. 5. If you’re staying at a hotel and receive a call from the desk asking that you confirm a credit card number, tell them you’ll do so in person rather than over the phone. The call could easily be random and from outside the hotel. 6.

Bring as few credit cards as possible, and ideally carry just one with you and keep a backup card in the hotel safe. Bring a copy of emergency contact numbers for your credit cards and bank accounts in case they’re lost or stolen. 7. Beware of pickpockets. Remove all documentation and cards from your wallet or purse that you won’t need during your travels. 8. Use cash or travelers checks wherever possible to minimize the risk of credit card fraud or overcharging (this can also help avoid costly extra fees if you’re traveling abroad).

9. Make a photocopy of the cards and documents in your wallet or purse, including credit and ATM cards, store cards, drivers license, etc. Leave the copy with someone you trust in case your wallet or purse is stolen. 10. If you’re leaving for an extended period and don’t expect to be applying for new credit during that time, consider using a credit monitoring service to watch over your credit, or consider placing a tempoC rary freeze on your credit reports.

UNDERSTANDING YOUR BENEFITS

IRS GUIDANCE ON OVERͳTHEͳCOU Submitted by Liya Moolchan For More Information Contact Human Resources

The Patient Protection and Affordable Care Act (PPACA) changed the requirements related to reimbursements for over-the-counter (OTC) drugs. These changes affect health FSAs, (Flexible Spending Account), which will need aprescription to reimburse the costs of OTC drugs purchased after December 31, 2010. On September 3, 2010, the IRS released IRS Notice 2010-59, which provides additional information on this requirement. The notice states: • • •

Reimbursement is restricted to prescribed drugs, insulin and OTC drugs that have a prescription; Health FSA and HRA debit cards cannot be used for OTC drugs, except as provided in the notice; Required cafeteria plan amendments must be adopted by June 30, 2011 and can be retroactively effective.

IRS Notice 2010-59 - Summary The Notice provides guidance on Section 9003 of PPACA, which revises the definition of “medical expenses” for employer-provided accident and health plans, including health flexible spending arrangements (health FSAs) and health reimbursement arrangements (HRAs). PPACA Section 9003 also revises the definition of “qualified medical expenses” for health savings accounts (HSAs) and Archer medical savings accounts (Archer MSAs). Section 9003 applies after December 31, 2010. Under these rules, tax-free payment or reimbursement is only available after December 31, 2010, for expenses incurred for a medicine or drug if

the medicine or drug is a prescribed drug (determined without regard to whether the drug is available without a prescription) or is insulin. This means that these expenses may be paid or reimbursed by an employerprovided plan (including a health FSA or HRA) or reimbursed tax-free by an HSA or Archer MSA if the medicine or drug: • Requires a prescription; • Is an OTC medicine or drug and the individual obtains a prescription; OR • Is insulin.

Note that expenses incurred for OTC medicines or drugs purchased without a prescription before January 1, 2011, may be reimbursed tax-free at any time, pursuant to the terms of the plan.

What Is a Prescription?

For purposes of these rules, the Notice clarifies that a prescription means a written or electronic order for a medicine or drug that meets the legal requirements of a prescription in the state in which the medical expense is incurred and that is issued by an individual who is legally authorized to issue a prescription in that state.

What About Other OTC Items?

The Notice makes clear that the requirement to get a prescription does not apply to OTC items that are not medicines or drugs, including equipment such as crutches, supplies such as bandages, and diagnostic devices such as blood sugar test kits. These items can qualify for medical care if they otherwise meet the tax

UNTER DRUG REIMBURSEMENTS code’s definition of medical care, which includes expenses for the diagnosis, cure, mitigation, treatment, or prevention of disease, or for the purpose of affecting any structure or function of the body. However, expense for items that are merely beneficial to the general health of an individual, such as an expenditure for a vacation, are not expenses for medical care.

Rules for Debit Cards In most cases, health FSA (Flexible Spending Account) and HRA debit cards will not be able to be used to purchase OTC medicines or drugs, effective January 1, 2011. This is because current debit card systems are not capable of recognizing and substantiating that the OTC medicine or drug was prescribed. However, see below for an exception for purchases at certain pharmacies. Also, debit cards may continue to be used for medical expenses other than OTC medicines or drugs.

In order to facilitate the significant changes to existing systems necessary to reflect the new rules, the IRS will not challenge the use of debit cards for expenses incurred through January 15, 2011, as long as they follow existing rules. However, on and after January 16, 2011, OTC medicine or drug purchases at all providers and merchants must be substantiated before reimbursement may be made. This is the case even if the provider or merchant has an inventory information approval system (IIAS). Substantiation is accomplished by submitting the prescription (or a copy of the prescription or other documentation that a prescription has been issued) for the OTC medicine or drug and

other information from an independent third party that satisfies existing requirements.

The Notice gives examples of documentation that would satisfy the substantiation requirements for OTC medicines or drugs: • A customer receipt issued by a pharmacy which identifies the name of the purchaser (or the name of the person for whom the prescription applies), the date and amount of the purchase and an Rx number.

• A similar receipt without an Rx number that is accompanied by a copy of the related prescription.

As noted above, there is an exception to the restrictions on debit card use for certain pharmacies. Prior IRS guidance (Notice 2007-2) provides that health FSA and HRA debit cards may be used at a pharmacy that does not have an IIAS if 90 percent of the store’s gross receipts during the prior taxable year consists of items which qualify as expenses for medical care under Internal Revenue Code Section 213(d). The Notice states that, until further guidance is issued, debit cards may be used at a pharmacy that satisfies the 90-percent test to purchase OTC medicines or drugs that have been prescribed, provided that substantiation is properly submitted in accordance with the terms of the plan. The prescription (or a copy of the prescription or other documentation that a prescription has been issued) and other information from an independent third party must be included. For the purpose of determining whether a pharmacy meets the 90-percent test, sales of OTC medicines and drugs at the pharmacy may contin-

ue to be taken into account after December 31, 2010.

Transition Rule for Cafeteria Plans Cafeteria plans may need to be amended to follow the new requirements for OTC medicines and drugs. In general cafeteria plan amendments may be effective only prospectively. However, the Notice states that, notwithstanding the general rule against retroactive amendments, an amendment to conform the cafeteria plan to the new OTC drug requirements that is adopted no later than June 30, 2011, may be made effective retroactively for expenses occurred after December 31, 2010 (or after January 15, 2011 for health FSA and HRA debit card purchases).

Effective Dates For expenses incurred after December 31, 2010, payments or reimbursements for medicines or drugs from an employer-provided accident and health plan, including a health FSA or HRA, are restricted to prescribed drugs, insulin, and OTC drugs that are prescribed.

This effective date applies regardless of whether the plan year for the employer’s plan is a fiscal or calendar year or whether there is no plan year (or other coverage period in the case of an HRA), and regardless of any applicable grace period for a health FSA. Tax-free distributions for qualified medical expenses from an HSA or Archer MSA for medicines or drugs purchased after December 31, 2010, are restricted to prescribed drugs, insulin and OTC medicines or drugs that are prescribed.