The Department of Human Resource Management
Office of State Health Benefits
November 6, 2024
2025 Annual Rate Notification for Medicare-Eligible Retiree Group Participants
The Annual Rate Notification booklets for Medicare-Eligible Retiree Group Participants will begin mailing on November 12th. Copies of the two booklets and the enclosure, one for those with outpatient prescription drug coverage and one for those in medical-only plans (no outpatient prescription drug coverage through the state program), are available at the following links:
If you have an employee who retires or starts LTD effective January 1, 2025, or later and enrolls in the State Retiree Health Benefits Program, please provide a copy of these materials to summarize 2025 premiums and plan changes for the Advantage 65 plans.
Annual Notice of Change materials provided by Express Scripts Medicare to participants who are enrolled in an Advantage 65 Plan that includes prescription drug coverage will be posted on the DHRM website soon.
Please do not reply to this email. You may send inquiries to the Office of Health Benefits at OHB@dhrm.virginia.gov.
Reclassification of Flexible Spending Account (FSA) Funds
State agencies are required to reclassify FSA funds as taxable income for participants who did not appropriately validate expenses made on their FSA cards, resulting in overpayment of taxable benefits, or who did not repay the plan for overpayments on their accounts. Centralized payroll agencies will be notified by DOA and Decentralized payroll agencies will be notified by OHB. Please make the appropriate deductions to your payrolls by adding the Total Overpayment amount to the employee’s taxable income.
When making an adjustment to an employee’s payroll, please notify the employee of the adjustment. You may use the suggested language below.
XXXXXXX,
Your check dated XXX has been adjusted by XXX as taxable income due to one of the following:
- Failure to provide validation of Flexible Spending claims by the end of your runout period, which was the three months following the end of your coverage period. By IRS guidelines, any amounts not validated by the end of the run-out period must be reclassified as taxable income.
- Failure to repay your FSA for overpayments made on your account.
If you wish to dispute the reclassification, you can contact the Office of Health Benefits at OHB@dhrm.virginia.gov. Please know that you will need sufficient documentation for the claim, and documentation that you' were able to submit the information to Inspira by your deadline.
If your agency did not receive a notification from DOA or OHB regarding reclassification of funds, then you do not have any this year.
Please do not reply to this email. You may send inquiries to the Office of Health Benefits at OHB@dhrm.virginia.gov.
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