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Our Mission Statement
Employee Benefit Concepts is an Employee Benefits Management Company, providing superior benefit plan designs and options, and benefit administration services, for employers who provide employee benefits to their employee's, that are consistent with the goals and objectives of the employer. We are committed to providing employee benefits plans and benefit administration services that are at lower than regular market prices, while still achieving high levels of professional excellence. |
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Planned 2011 Effective Date on FSA Restrictions |
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Planned 2011 Effective Date on FSA Restrictions Would Quickly Force Millions to Pay Higher Taxes and Health Care Costs
Dear John,
We've known for some time that health care reform proposals include provisions to restrict the use of flexible spending accounts (FSAs), which is disturbing enough. During meetings yesterday with policy makers on Capitol Hill, we learned these restrictions are planned to take effect in 2011.
Not only is a 2011 effective date a departure from the 2014 date approved by the Senate last year, it also makes FSAs the first health care reform provision to take effect, while other provisions will be enacted towards the end of this decade.
From the beginning, we have fought against proposals that impose an unreasonably low cap on FSA contributions and limit the use of the benefit to cover the cost of over-the-counter medications. As health care reform gears back up, we need your help once again.
Click here to tell President Obama and your members of Congress to preserve your FSA and prevent it from becoming the first victim of health care reform.
Even if you have contacted your elected representatives before, the threat to FSAs has evolved and we need you to take action again today.
Thank you for your continued support.
Sincerely,
Jody Dietel
Save Flexible Spending Plans
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Threat to FSAs Returns in President's Proposal |
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Dear John,
While public apprehension surrounding 2009's health care reform forced Congress to temporarily put their legislative proposals on hold, reform efforts have resumed with the introduction of President Obama's health care reform proposal this week. And with the new proposal, the threat to FSAs has returned as well.
Mimicking legislative provisions previously approved by the Senate and House, President Obama's health care proposal threatens to restrict FSAs by imposing a $2,500 cap on FSA contributions. This significant restriction would force one in five plan participants, approximately seven million Americans, to pay higher taxes and health care costs at a time when they can least afford it.
As was made clear in yesterday's health reform meeting hosted by the White House, Democratic leaders are intent on passing health care reform legislation. Unless we act now and convince them otherwise, FSAs could become the unintended victim of their efforts.
Click here to tell President Obama and your members of Congress to preserve, rather than restrict FSAs.
Thank you for your continued support.
Sincerely,
Jody Dietel
Save Flexible Spending Plans
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Payment fraud is a growing challenge affecting all organizations. As a Third Party Administrator we include a full range of Protection for our Employer groups and there employees. One being Positive Pay or Payment Fraud Prevention.
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Inventory Information Approval System (IIAS)
What is an “inventory information approval system” as specified by the IRS?
The retailer's point of sale system identifies eligible healthcare FSA/HRA purchases by comparing the inventory control information (e.g., UPC or SKU number) for the items being purchased, against a preestablished list of eligible medical expenses. The list is restricted to "eligible medical expenses" as described in Section 213(d) of the Internal Revenue Code (including eligible non-prescription items). The eligible medical expenses are totaled and sent to the payment card issuer's system which approves the payment subject to coverage under the health plan (i.e., type of coverage provided, covered participant, etc).
IIAS Merchant List (A listing of Merchants/Pharmacy/Retail Stores that are compliant or in the process of being compliant.)
You will need Adobe Reader to View This List. If You don't have Adobe Reader you can download and install it free at http://get.adobe.com/reader/ |
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The regulations become effective on January 16, 2009
Proposed Revisions to the FMLA Regulations
Joint Employers
The existing section of the current regulations governs employer coverage and employee eligibility in the case of joint employment and establishes responsibilities of the primary and secondary employers.
The proposed DOL regulations establish that Professional Employer Organizations ("PEOs") that contract with client employers only to perform administrative functions (such as payroll, benefits, regulatory paperwork, and updating employment policies) are not joint employers with their clients to the extent that they:
(a) merely perform such administrative functions and do not have the right to hire, fire, assign, or direct and control the client's employees, and
(b) do not benefit from the work that the employees perform.
Definition of "Eligible" Employee
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 What is a Health Reimbursement Arrangement (HRA)?
HRAs have been referred to by many names over the years such as personal savings accounts, personal care accounts, defined contribution plans, or consumer-driven health care plans.
The confusion ended in 2002, when the IRS finally issued guidelines in Notice 2002-45 and Revenue Ruling 2002-41 for employer-provided medical reimbursement accounts and called it the Health Reimbursement Arrangement, or HRA.
Health Reimbursement Arrangements are funded with employer dollars to pay expenses not covered by another health plan. An employer can opt for its HRA to pay some or all of the health expenses allowed by the IRS. For example, an HRA could pay all eligible medical expenses, including premiums for health and long-term care insurance; or the HRA could be limited to cover only dental or vision expenses. Although an HRA can have an option to carry forward unused funds to the future or for retirement, an employee cannot take their HRA funds to a new employer.
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 See how you can save by using your take care card at participating locations. Click here for more info! |
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Save My Flexible Spending Plan |
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Please Check out the website on how HealthCare Reform might affect or could take away your Flexible Spending Account (FSA). Click On Banner Below.
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COBRA Temporary Premium Assistance in Economic Stimulus Package |
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The COBRA temporary premium assistance provision survived the House-Senate economic stimulus package compromise, while the permanent extension provision of COBRA for older or long-term employees was dropped. Below we review the COBRA provision in The American Recovery and Reinvestment Act of 2009, which Obama is expected to sign on Tuesday. The COBRA provision raises procedural questions that the regulatory agencies will need to address.
The American Recovery and Reinvestment Act provides a 65% federal subsidy for up to 9 months of COBRA for individuals who became eligible for COBRA coverage from September 1, 2008 through December 31, 2009 due to involuntary termination of employment. The bill permits these COBRA individuals to satisfy their COBRA premium by paying only 35% of the premium. Plan sponsors are permitted to reduce their payroll taxes to offset the lower premiums paid by qualified beneficiaries. The bill creates a new special election period for those who have not elected COBRA and a new notice requirement to inform individuals about the opportunity to elect COBRA and receive a federal subsidy. The government is required to create a model notice for plan sponsors to use within a quick timeframe.
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In January 2007 the IRS issued guidance that required healthcare debit cards to be used only at pharmacies if they have implemented an IIAS system, or if over 90% of the store's gross receipts during the prior taxable year consisted of items which qualify as medical expenses. This requirement was to be effective January 1, 2009.
Yesterday, the IRS issued the attached notice that postponed the IIAS and 90% gross receipt requirement for a period of six months.
Your debit cards will continue to work, as they do now, at pharmacies that do not meet the IIAS or 90% requirement between now and June 30, 2009. We will implement the rule to limit the cards in compliance with the IRS requirement on July 1, 2009.
Related Information:
Inventory Information Approval System (IIAS) Eligible Merchants
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Inventory Information Approval System (IIAS) Eligible Merchants |
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Submitting of receipts for verification of prescription and over-the-counter (OTC) purchases that were made with your FSA Spending Account Card will soon become history. The rules issued by the IRS in July 2006 (Notice 2006-69) will take effect on January 1, 2008. Because of this new regulation, merchants who accept the Spending Account Card (or any health care debit card) must implement an Inventory Information Approval System (IIAS).
When you swipe your card at the Point of Sale (POS), the merchants will validate that you are only purchasing an FSA eligible item and will provide FSA with what is required to verify the transaction without any further action by you. That means no more need for you to send in receipts. Because the IRS requires only eligible, health-related expenses to be purchased with your card, FSA recommends that you continue to save all your receipts.
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