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Cafeteria Plan
Flexible Spending Account

Kootenai County
Coeur d'Alene

Cafeteria Plan
Flexible Spending Account

"Save Tax Dollars"

Review this page & visit the website to learn more about this Benefit

Please direct all questions to:

Kootenai County - Human Resources
Christina Anderson 446-1643
Magnuson, McHugh & Co.
Paige Woods (208) 765-9500

Forms are available through:

Kootenai County - Human Resources
Christina Anderson Ext. 1643
During open enrollment, you will find a link within this page.

Plan Administrator:

Steve Flerchinger or
Paige Woods
(208) 765-9500
Visit us on the web at:

What is a Flexible Spending Account?

It is a way for you to pay out-of-pocket medical and child care expenses tax-free. If you have out-of-pocket costs for:

Deductibles & Co-pays
Prescription & Over-the-Counter Drugs
Eye Exams & Hardware


Dental Services


Day Care Center
Before & After School Care
In-home Child Care
Day Camps
Adult Day Care

You can set aside up to $10,000 a year for Medical Expenses. Daycare costs up to $5,000 a year ($2,500 if you are married filing separately, and cannot exceed the lower of the husband's or wife's adjusted gross income).

Medical expense is Pre-funded:
For medical expenses, you may be reimbursed at the time the expense is incurred and before the money is actually in your account with the expectation that you will continue your payroll deductions until the amount is repaid.
Child Care expense: Reimbursement for child care costs may only be paid out up to the actual amount in your Dependent Care Account.

What difference will it make?

With a Cafeteria Plan
Gross Income $30,000
Minus Health Care Expense (  1,444)
Minus Child Care Expense (  3,500)
Taxable Income $25,056
Minus Fed., State & SSA Tax (  3,101)
Spendable Income $21,955
Without a Cafeteria Plan
Gross Income $30,000
Minus Fed., State & SSA Tax (  4,321)
Net Income After Tax $25,679
Minus Medical Expense (  1,444)
Minus Child Care Expense (  3,500)
Spendable Income $20,735

Annual savings: $1,1220

That is a savings of over $100.00 a month.

How do I enroll in the plan?

It's as easy as 1-2-3

  1. Calculate your eligible expenses for both medical and/or daycare costs. Confirm any unusual expense with Magnuson, McHugh & Co.
  2. Contact Human Resources - Christina Anderson Ext. 1643.
  3. Complete and return the Cafeteria Plan Election form to Human Resources.

How do I get my money back?

When you incur a medical or daycare expense . . .

  1. Complete a Request for Reimbursement form below.
  2. Attach a receipt that shows date-of-service or an Explanation of Benefits from the insurance provider.
  3. Fax, mail, or deliver to Magnuson, McHugh.

Checks are issued weekly and mailed to the address listed on your Election Form.

If you have an address change, be sure to contact Magnuson, McHugh & Co.

What Medical Expenses qualify?

Your out of pocket costs associated with:

  • Deductibles, co-pays, and other eligible expenses not covered by insurance.
  • Prescription drugs and medical supplies.
  • Over-the-counter drugs that are medically necessary like allergy medications, aspirin or antacids.
  • Dietary supplements and vitamins with doctor's letter of medical necessity.
  • Dental services, orthodontics and dentures.
  • Eyeglasses, contacts, solutions, and eye surgery.
  • Weight-loss programs (associated with a specific disease) and/or over-the-counter drugs with doctor's letter of medical necessity.
  • Chiropractic services.
  • Smoking cessation programs or over-the-counter drugs.
  • Adult and child daycare services.

Accepted Over-the-Counter Items

bullet Antiseptics-ointment, Iodine, rubbing alcohol
bullet Asthma medications
bullet Cold, flu & allergy medications-tablets, syrup or drops, medicated chest rubs, nasal decongestant or sinus inhaler or spray
bullet Diabetes-lancets, supplies, test strips
bullet Health aids-anit-fungal treatment, hemorrhoid relief, incontinence supplies, motion sickness tablets
bullet Pain Relief-arthritis pain reliever, itch relief, Orajel, aspirin or non-aspirin pain reliever, throat pain medication
bullet Personal Test Kits-cholesterol tests, cancer screening tests, home drug tests, ovulation or pregnancy tests
bullet Skin Care-acne medication, anti-itch lotion, bunion or blister medications, cold sore or fever blister medication, diaper rash ointment, eczema cream, wart removal
bullet Stomach Care-acid reducers, antacid gum, liquid or tablets, anti-diarrhea medication, gas Ipecac syrup, laxatives, pinworm upset stomach medications

What Medical Expenses DO NOT qualify?

  • Expenses reimbursed by insurance or any other source.
  • Cosmetic surgery or services
  • Health Club dues for general good health
  • Massage therapy
  • OTC non-prescribed vitamins

If it is a questionable expense call before you include the expense in your calculations.

What's the catch?

bullet You must enroll for each year.
bullet The expense must be incurred during the current calendar year.
bullet You have 90 days after the plan year end to submit a Flexible Spending Account claim From and invoices.
bullet You cannot change or stop your contributions during the calendar year, unless you have a change in status, such as marriage, divorce, birth, death, or a significant change in the total number of hours worked.
bullet Medical and daycare are separate spending accounts. You cannot use money from one account to pay expenses from another account.
bullet Money not spent during the current calendar year is forfeited, so plan carefully.