125? American Fidelity and more on CVT

posted Sep 12, 2012, 7:29 AM by Yuba City Teachers Association   [ updated Apr 22, 2013, 5:40 PM ]



So many decisions to make during open enrollment.  Here is another attempt to help.


Section 125 allows you to use pre-tax dollars to pay for premiums as well as unreimbursed medical expenses.  Our provider for this service is American Fidelity.  There are two different services within the Section 125 options.

  • Premium deductions using pre-tax dollars.  If you did this last year, you do NOT need to do it again this year.  However if you were on 10C last year and did not set up a 125 last year, you MUST do so this year by meeting with a rep at your site or the DO.
  • Flexible Spending Account.  This allows you set aside dollars in anticipation of unreimbursed medical costs.  Problem - you need to estimate conservatively because if you do not use all the money - it goes away at the end of the year or more precisely to the District general fund.  For example - You may choose to set aside $100 per month.  You may then file a claim to get this money back after you incur unreimbursed costs for copays, deductibles, prescriptions, and other examples - last page of packet from District.  If you are on 10D - it may not take much to use the set aside $1200. But if you do not, you lose it.  The money is taken out before taxes and reduces your taxable income and thus your tax bill.


CVT and medical insurance ---Many of you had the opportunity to meet with Dave Koop, our CVT account manager in person at our office, but if you missed that, you may call Denise our other CVT contact at 800-288-9870 x110 or email at deniseb@cvt.org  I spoke with her this afternoon and she is ready to help - just call.


Plus there is also an informative webinar that Denise recommended at



For those of you with a spouse or registered domestic partner also covered by CVT composite rate PPO plan, we have no news to report.  The District will not work with us on this issue and the District plans to keep all savings.  We have also asked for help with the premium increases.  We have requested additional negotiations sessions in the hopes of resolving this, but currently we must all plan as quoted within the District packet.    Watch for a message from the Executive Board in your mailboxes tomorrow or Thursday.  I wish I could report better news.  Mark your calendars for a general membership on September 19 - we ALL need to talk.....


Take care of yourselves and your family. We may not be able to control the raising costs of health insurance or the District's current response, but we can perhaps take some control of our own health and well being.  Below you will find a quote from Elisa Hill, our CVT rep for Wellness and Health.  She will be working with us to bring wellness to the forefront for our members.  Let's support each other in our efforts for physical and emotional well being. 


The top five major health conditions for CVT as a whole, in terms of claims, are Cancer, Coronary Artery Disease, Low Back Pain, Diabetes and Obesity.  Of those at least 4 can be improved (as compared to resolved) by exercise, high fiber / low fat diet...for starters.  Given the general U.S. population, those stats are not really surprising.

I appreciate the long hours and selfish sacrifices of so many educators.  Don't forget to take care of yourselves and your families.  Tough times bring greater stress and we sometimes neglect ourselves as we care for others. 


Take care, Dina