Employee Benefit Concepts, Inc.

not just insurance but total assurance

Inventory Information Approval System (IIAS) Eligible Merchants

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.

Newborns' and Mothers' Health Protection Act – Final Rules

On Oct. 20, the Department of Labor and three other governmental agencies released final rules for group health plans regarding hospital lengths of stay for mothers and newborns following childbirth. The final regulations are effective on Dec. 19, 2008. For the group market, the final rules apply to group health plans and issuers for plan years beginning on or after Jan. 1, 2009. ERISA-covered group health plans are required to comply with the ERISA notice regulations, whether insured or self-insured. Nonfederal governmental plans and health insurance issuers in the individual market are required to comply with the Public Health Services Act notice which was amended to incorporate these provisions as well.

The final regulations support the general rule that group health plans and health insurance issuers may not restrict mothers' and newborns' benefits for a hospital length of stay in conjunction with childbirth to less than 48 hours following a vaginal delivery or 96 hours following a delivery by cesarean section.

Group Health Plans Must Continue Coverage for Sick College Students

A new law (P.L. 110-381), named "Michelle's Law," requires group health plans offering dependent coverage to allow college students who become seriously ill to leave school without losing coverage under their parents' plan. This law is effective for plan years beginning on or after October 9, 2009 (for calendar year plans, the provision takes effect on January, 1, 2010.)

Michelle's Law amends ERISA, the Public Health Service Act, and the Internal Revenue Code to ensure that dependent students who take a "medically necessary leave of absence" do not lose health insurance coverage for up to 12 months after they take the leave of absence. Fully-insured plans as well as self-funded plans are impacted.

A "medically necessary leave of absence" means a leave of absence from a postsecondary educational institution that commences while such child is suffering from a serious illness or injury, is medically necessary, and causes such child to lose student status for purposes of coverage under the terms of the plan.

Section 125 Debit Card Information

When using your debit card, Employee Benefit Concepts, Inc. will no longer require documented receipts when purchases are made at the following merchants:

Wal-Mart
Sam’s Club
Walgreens
CVS
Medco
Kroger
Target

Why doesn’t Employee Benefit Concepts, Inc. need documentation at these stores? These merchants use technology called Inventory Approval System (IAS) to approve HSA, FSA and HRA eligible expenses at the point of purchase. If your item is not eligible, they may request an alternate form of payment or show on the receipt which are eligible and which are ineligible expenses.

As more vendors adopt the health care merchant codes and inventory approval systems, we will keep you informed via our web site at www.employeebenefitconcepts.com. In the mean time, if you have questions, please give us a call at (248) 855-8040.

Employee Benefits Security Administration (EBSA)

The Employee Benefits Security Administration (EBSA), the arm of the DOL in charge with enforcing ERISA, has made available an interactive website designed to help employers understand and comply with the legal requirements for health benefits plans. The website covers COBRA, HIPAA (portability), the Newborns' and Mothers' Health Protection Act, the Mental Health Parity Act, and the Women's Healthand Cancer Rights Act, all of which are federal health benefits laws contained in Title I of ERISA.

The website also contains an employee section that provides general information on health benefit laws and is designed to assist employees and their family members in understanding their rights and responsibilities.