N.J. Admin. Code § 17:1-13.2

Current through Register Vol. 56, No. 23, December 2, 2024

Section 17:1-13.2 - Unreimbursed medical spending account

(a) Each employee may elect to reduce his or her salary, through regular payroll deductions, by a specified dollar amount to create an unreimbursed medical spending account (UMSA) to provide for the direct payment or reimbursement by the State, or its plan administrator, of any or all medical and dental expenses not reimbursed, or only partially reimbursed, under the employee's health benefit plan or any other benefit plan, and considered by the Internal Revenue Service (IRS) to be a tax deductible medical expense. Also eligible for reimbursement are certain expenses for medical care, that is, costs for diagnosis, cure, mitigation, treatment, or prevention of disease, or for the purpose of affecting any structure or function of the body, that the IRS determines may be reimbursed by an UMSA even though these expenses are not deductible for the purpose of itemizing medical expenses for Federal taxes.

1. Examples of eligible tax deductible medical expenses are orthodontia, surgery (excluding cosmetic surgery), and the deductible portion of medical and dental expenses under the employee's health benefits plan, as well as coinsurance amounts.

2. Eligible expenses include those incurred by the employee's eligible dependents.

3. Premium contributions required for any medical or dental coverage are paid through premium conversion and not from the unreimbursed medical spending account. Such premium contributions for the State Health Benefits Program coverage do not qualify as eligible medical expenses under the UMSA. Likewise, premium contributions paid by the employee's eligible dependents for health care insurance coverage outside the State Health Benefits Program do not qualify as eligible UMSA medical expenses.

N.J. Admin. Code § 17:1-13.2

Amended by R.2004 d.104, effective 3/15/2004.
See: 35 N.J.R. 5349(a), 36 N.J.R. 1358(a).
In (a), rewrote the introductory paragraph and inserted "tax deductible medical" preceding "expenses are orthodontia" in 1.
Amended by R.2006 d.65, effective 2/21/2006.
See: 37 N.J.R. 3631(a) 38 N.J.R. 1225(b).
In (a)1, substituted "excluding" for "including."
Amended by R.2009 d.25, effective 1/5/2009.
See: 40 N.J.R. 4928(a), 41 N.J.R. 277(a).
In (a)3, substituted "Premium" for "Note that premium" and inserted the last two sentences.