1Point Solutions, the administrator of the Tennessee Board of Regents flexible medical and dependent childcare benefits plan, has been in the news recently and is under investigation for mismanagement of the funds under its control. However, TBR officials stress that TBR employees will not lose any money in the plan, and insurance coverage will not be affected. Below are a press advisory issued by the TBR on Sept. 25 and a list of frequently asked related questions and answers. If you have more specific questions, contact the Human Resources Office at 3034.

1Point Solutions was selected in 2005 as the administrator for the Tennessee Board of Regents system’s flexible medical and dependent childcare benefits plan. The company was selected in a competitive bid process, in which it was the lowest bidder. About 2,600 TBR employees statewide participate in the flexible benefits plan.
As a result of 1Point’s failure to meet its contract obligations, TBR has cancelled that contract and is in the process of negotiating a contract with Fringe Benefits Management, which has administered the TBR flexible benefits plan in the past. We expect that contract to be operational by mid-October.

No TBR employee will lose his or her money because of the 1Point problems. Because flexible benefits plans are highly regulated by the Internal Revenue Service, it is not possible for employees to withdraw from the program this year.

Frequently Asked Questions
Flexible Benefits – 1Point Solutions

Q1. Will the flexible benefits account problems affect my health coverage? A1. No, you do not even have to have insurance to participate in FSA.

Q2. Can I stop my deductions if I do not want to continue in the plan? A2. Accord-ing to IRS regulations, you are a participant for the entire plan year – Calendar Year 2006. No, you cannot change after enrolling in the plan year without changes in status, such as marriage, divorce, childbirth, etc. An employee must have a legitimate claim for day care/medical reimbursement to be paid from his/her account.

Q3. Will there be restrictions on which doctor, hospital, lab I can go to since we have issues with the flexible benefits plan? A3. No, your insurance plan provides the network and is unaffected.

Q4. Will my dental and vision care be affected? A4. No, if you have dental insurance, it is not affected. TBR doesn’t provide vision insurance coverage. However, if you used the medical reimbursement plan to supplement the payments for dental or to pay totally for your vision care, then you will need to keep receipts from all services for reimbursement until a new claim process is established.

Q5. What if I don’t use all of the money in my account? A5. Per your agreement, the money in your account is forfeited to the plan as has always been the case.

Q6. Will the issues impact my tax returns or W-2? A6. No, payroll deductions will continue as pre-tax.

Q7. How will I pay my pharmacy since the debit card cannot be used? A7. Until a new process is established, you should pay by check or with cash. Keep the receipt of all purchases for reimbursement.

Q8. My day care expects payment at the end of the month. I have direct deposit “recurring expense service” established. This service pre-certifies the regularly recurring dependent care expenses so you do not have to keep receipts or complete claim forms. How do I make this month’s payment? A8. Employee should pay by check or with cash and keep receipt for reimbursement. Special arrangements are being explored to deal with dependent care reimbursement and will be communicated from the TBR Central Office.

Q9. Is there an employee help line since 1Point has closed its doors? Can I go to Dickson and get my money? A9. No, any questions should be forwarded to your HR officer at this time. No, the office is closed in Dickson.

Q10. I file all my expenses at the end of year, March 2007. Is there any chance that there will not be funds to reimburse me? A10. There is no change to the plan year and funds will be available. The 90 day extension at the end of the plan year for filing claims remains unchanged; however, the expense must have been incurred during the plan year 2006.

Q11. Will new hires be allowed to enroll? A11. No, they will not be allowed at this time.

Q12. If 1Point is under investigation and my records, e.g. social security #, are in their hands, how safe is my confidential information? Will my medical records be given to a third party? A12. 1Point is subject to federal law regarding disclosure of records and is obligated to process any request pursuant to this standard.

Q13. When can I expect payment of any pending claims? Who should I notify?
A13. Notify the HR officer on your campus who will in turn notify the TBR HR Office. Keep receipts and any paperwork regarding the claim on hand since you may be asked to re-file.

Q14. How soon can I expect my money from the receipts that I am collecting and holding after the September 25 notification from my employer? A14. The TBR central office is negotiating with the previous flexible benefits plan contractor to provide services. As soon as the contract is in place, campuses will be notified.

Q15. If I am audited, who will provide records? 1Point? A15. As always, employees should maintain records for flexible spending accounts for audit purposes.

Q16. How can I open a flexible spending account on my own? A16.You cannot. Only your employer can set up for you.

Q17. Return check charges were charged by my bank to my account due to the lack of funds from 1Point to pay my claims. Who will pay these charges? A17. The TBR central office is negotiating with the previous flexible benefits plan contractor. Campuses will be notified of procedures by TBR HR to pay these return charges as soon as contract is in place.

Q18. The 1Point Solutions web site shows payment has been made for my claim for day care/or medical reimbursement. However, the day care provider/employee did not receive the payment(s). What do I do to resolve? A18. Locate your copy of the claim for the payment that is questionable and any supporting documentation of contacts with 1Point and provide copies to your HR department. As soon as the new contract is in place, campuses will be notified of procedures to resolve these types of issues by TBR HR.

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