Headlines about "Cafeteria plans (125, flexible spending)"
Gathered from the web by the editors at BenefitsLink.com.
[Opinion] Over-the-Counter (OTC) Medicine Saves Healthcare System Billions
"[T]he study findings underscore the importance of reversing a provision in the 2010 Affordable Care Act (ACA) that prohibits consumers from using their flexible spending arrangements (FSAs) to purchase OTC medicines without first getting a prescription. At the time this provision was enacted, an estimated 19 million working American families purchased OTC medicines, relying on these accessible and affordable medicines to keep their families healthy." (Consumer Healthcare Products Association)
IRS 2011 Version of Publication 969 on HSAs, HRAs, Health FSAs, and MSAs
"Publication 969 provides a convenient overview of the basic features of various consumer-driven health care vehicles without getting into too much detail." (Thomson Reuters/EBIA)
The Do-It-Yourself Health Savings Account
"[A two-part health-savings program, consisting of FSA assets plus additional assets held outside the FSA, probably makes sense for most participants in traditional health-care plans. Such a two-part plan would work as follows. Part 1: Flexible Spending Account: Fund an FSA with an amount that you think, with some degree of certainty, you'll be able to use on health-care expenses in the year ahead. Part 2: Supplemental Health-Care Account: Create a separate pool of liquid assets to cover any additional out-of-pocket costs that arise once you've exhausted your FSA funds." (Morningstar, Inc.)
IRS Issues 2011 Versions of Publications on Medical and Dental Expenses and on Child and Dependent Care Expenses
"Pub. 502 provides valuable guidance on what qualifies as a medical expense under Code ? 213(d), and thus, helps identify the expenses that may be reimbursed or paid by health FSAs, HSAs, or HRAs." (Thomson Reuters/EBIA)
[Guidance Overview] Update on Fiscal Year Health FSAs and the $2,500 Limit
"On January 10, 2011 I posted about how employers with health FSAs that follow a fiscal year might comply with the $2,500 deferral dollar limit going into effect on January 1, 2013. This post updates and corrects the earlier post as follows: Notice 2012-9, which provides updated guidance on Form W-2 reporting of the value of group health care, exempts most health FSAs from the reporting requirement. The specific exemption applies to health FSAs that are exempt from HIPAA because they are funded entirely by employee salary deferrals, or because any employer contribution is $500 or less." (E is for ERISA)
[Guidance Overview] Two New Cafeteria Plan Requirements Begin Affecting Plans in 2013
"Two new requirements apply to cafeteria plans in 2013 but plan administrators may need to start planning for these changes this year. The first is likely the most well-known: a new annual limit on employee contributions to health FSAs. The second may be more surprising: W-2 reporting of employer contributions to Health FSAs." (Wolters Kluwer Law & Business / ftwilliam.com)
[Guidance Overview] Health FSA Dollar Limit for 2013 Impacts Some Fiscal Year Plans Now
"The Affordable Care Act limits salary deferrals that may be made under a health flexible spending account (FSA) to $2,500 in 'taxable years' beginning on or after January 1, 2013. However Section 125 cafeteria plans that include health FSAs subject to the dollar limit, and that follow a fiscal rather than calendar plan year, need to take steps now to apply the dollar limit over their 2012 ? 2013 plan year." (E is for ERISA)
11 Tips to Empty Your Flex-Spending Account
"[I]f you follow these 11 tips, you may find it easy to spend down your FSA quickly. And remember, even if you do not fully tap out your FSA, you're still most likely coming out ahead financially due to the substantial tax savings . . . ." (MarketWatch, Inc.)
Flexible Spending Account Deadline Near
"Even under the new rules, WageWorks estimates there are more than 30,000 items you can buy at the drugstore without a prescription, including: Sunscreen with SPF of 30 or higher. Incontinence products, such as adult diapers. Hot and cold first-aid wraps. Contraceptives, including condoms and diaphragms. Pregnancy tests are also eligible. Vaccinations. If you haven't gotten your flu shot, this is an excellent time to get one. Screening devices, such as blood pressure monitoring kits. Carpal tunnel wrist supports." (USA TODAY)
[Guidance Overview] Must FSAs Offer COBRA to Terminated Employees?
"Issue: Your company will be issuing layoff notices soon. Many employees who will be affected have health flexible savings accounts (FSAs). What are the rules regarding FSAs and COBRA when employment is terminated?" (Wolters Kluwer Law & Business / CCH)
[Guidance Overview] San Francisco's New Rules on Health Reimbursement Arrangements
"The City and County of San Francisco Labor Standards Enforcement department has published the full law, highlighting the most recent changes, as well as sample contribution and separation of employment forms." (Business Insurance)
[Guidance Overview] Updates on Health and Welfare Benefit Developments, Dec. 12, 2011
Includes discussion entitled 'Amendment to 'Pay-or-Play' Law May Require Immediate Attention by Employers with San Francisco Employees.' Excerpt: 'The HCSO amendment will likely require most employers who satisfy the HCSO's pay-or-play mandate by using health reimbursement arrangements ('HRAs') or employer contributions to health flexible spending arrangements ('health FSAs') to amend or restructure those HRAs or health FSAs before the end of the year." (Miller Chevalier)
Sending Out 2011 With a Rush on Flexible Spending
"Yet a surprising number of workers don't take part: Mercer's 2011 National Survey of Employer-Sponsored Health Plans shows that healthcare spending accounts are offered by 85 percent of employers, yet have an average employee participation rate of just 22 percent." (Reuters)
Some Help Getting Reimbursed for OTC Drugs Through Your Flexible Spending Account
"The whole thing has gotten so complicated that many employees appear to have given up seeking reimbursement for OTC medicines (possibly the whole point in the first place, since tax revenue increases for the government if people put less in their accounts in anticipation of not using that extra money for OTC medications)." (The New York Times; free registration required)
A New Rule Is Making Flexible Spending Accounts Less Easy to Use, Say Experts
"Some companies are stepping in to make the process easier. Many third-party administrators of FSAs are offering a so-called master prescription form that allows employees' doctors to list the OTC medications their patients need throughout the year . . . ." (The Wall Street Journal)
[Opinion] A Dozen Ideas for Flexible Benefits in 2012
"Here are a dozen suggestions for benefits and insurance professionals who are involved with flexible benefits . . . ." (SmartHR)
[Guidance Overview] IRS Information Letters Address Unique Qualifying Medical Expenses
"The IRS recently addressed unique taxpayer questions regarding whether certain expenses qualify as medical expenses under Code ? 213 and whether those expenses could be reimbursed from a health care flexible spending account or medical reimbursement account." (Deloitte via BenefitsLink.com)
The Global Added Value of Flexible Benefits (PDF)
"Several companies in Asia plan to implement flex in the next few years, and a number of emerging best practices in flexible benefits design are being developed. This article discusses the many advantages of flex, flex best practices emerging across Asia, and important considerations for employers when designing flexible benefits." (International Society of Certified Employee Benefit Specialists)
IRS Reminds Participants That Plans Are Not Required to Reimburse All Eligible Medical Care Expenses
"Two recently released IRS information letters about medical care expenses emphasize that employer-sponsored plans such as health FSAs and HRAs are not required to pay or reimburse every item or service that qualifies as a medical care expense, and can limit payment or reimbursement to only certain expenses." (Thomson Reuters/EBIA)
[Guidance Overview] Special Foods? Hearing Aid Repairs? Now They're Deductible
"In Information Letter 2011-0035, the IRS said that if an individual consumes a special diet for medical reasons, the amount by which the cost of specially prepared foods exceeds the cost of food that would satisfy normal nutritional needs can be deducted as a qualified expense for medical care under Code Section 213." (SmartHR)
[Guidance Overview] IRS Explains When Special Foods Will Qualify as Medical Care Expenses
"Although this information letter discusses the medical expense deduction, its analysis may also be helpful in determining whether special foods will qualify for reimbursement under a health FSA and HRA or for a tax-free distribution from an HSA." (Thomson Reuters/EBIA)
Employees Underutilizing FSAs
"An upcoming $2,500 limit on the contribution amount for medical Flexible Spending Accounts likely won't impact many Americans, according to recent results from the 'Getting Paid In America' survey." (PLANSPONSOR.COM)
[Opinion] Comments by Employers Council on Flexible Compensation on IRS Notice 2011-35: Fees on HRAs and FSAs for Funding of Comparative Clinical Effectiveness Research (PDF)
"In the majority of cases, employers offer their employees an FSA or HRA in tandem with primary health care coverage that will be subject to the CER fee. Imposing an additional CER fee . . . would result in double counting . . . ." (Employers Council on Flexible Compensation)
[Opinion] Consumer Directed Health Coalition Letter regarding Patients' Freedom to Choose Act (PDF)
"This legislation would eliminate two very problematic provisions that were included in PPACA. First, it would repeal limitations placed on the purchase of certain over-the-counter products with FSAs and HSAs. Secondly, it would roll back limitations on the contribution levelsto FSAs." (American Benefits Council)
[Guidance Overview] Payments to Caregivers Are Deductible as Qualified Long-Term Care Expenses
"The most important thing for employers and administrators to remember about the tax court's decision is what it does not say. Specifically, although qualified long-term care services can be deductible on an individual's tax return, health FSAs cannot reimburse them on a tax-free basis. Similarly, most HRAs may not reimburse qualified long-term care services. . . . In contrast, HSAs can reimburse long-term care services tax-free." (Thomson Reuters/EBIA)
FSA Advocates Push to End Cap on Contributions
"Under the provision in the Patient Protection and Affordable Care Act, contributions employees can make to their FSAs will be limited to $2,500 starting in 2013. In succeeding years, the annual limit will rise in tandem with increases in the Consumer Price Index." (Business Insurance)
[Guidance Overview] Cafeteria Plans Elections: When Should Requested Mid-Year Changes Be Approved?
"This article is intended to be a refresher of the rules and a reminder that help is available if a particular situation stumps you in your plan's administration. While the rules are relatively clear, they're easily muddled when dealing with the intricacies of a particular participant's situation." (Warner Norcross & Judd LLP)
Bill Would Allow Consumers to Withdraw FSA Funds at End of Year
"Sens. Ben Cardin (D-Md.) and Mike Enzi (R-Wyo.) introduced the Medical Flexible Spending Account Improvement Act, S. 1404, that would allow consumers to pay taxes on and withdraw their remaining funds from their FSAs." (Employee Benefit Adviser; free registration required)
Bill Introduced to Undo HSA Health Law Provision
"The bill would nix a provision that since January has required a prescription for buying over-the-counter medicines with medical savings accounts such as Flexible Spending Arrangements and Health Savings Accounts." (Henry J. Kaiser Family Foundation)
TRI-AD's Health and Welfare NewsLink, May 2011
This edition contains articles on the following: Over-The-Counter Medication Rules -- Where We Stand in 2011; Recap of Health Care Reform Provisions for Group Health Plans Effective in 2010 or 2011; California Conforms to Federal Law on Dependents to Age 26; and, Change in FSA Eligibility for Lactation Supplies. (TRI-AD)
IRS and Treasury Officials Provide Informal Views on Wellness, Health FSA, and HSA Issues
These notes from the ABA's Joint Committee on Employee Benefits' May 2011 Q&A session with IRS and Treasury officials report on health issues. (Thomson Reuters / EBIA)
[Guidance Overview] Deadline Approaching to Amend Cafeteria Plan Documents
"Although the restrictions are already in effect -- and have been since January 1, 2011 -- the IRS previously announced that any implementing cafeteria plan amendments generally could be adopted by as late as June 30, 2011, as long as the amendments were effective retroactively to apply to expenses incurred on or after January 1, 2011 (or January 16, 2011, with respect to the special rules for Health FSA and HRA debit card purchases)." (Miller & Chevalier Chartered)
2011 Deadlines Loom for Plan Amendments for Health FSA Over-the-Counter Medication and Other Health Care Reform Requirements
"Account-based health programs that previously provided for reimbursement of over-the-counter medications must be amended to conform to the new over-the-counter medicine and drug requirements." (Littler)
[Guidance Overview] June 30 Amendment Deadline Looms for Cafeteria Plans and HRAs
"The employer may simply amend the plan document and employee communications to provide that all expenses for medicine and drugs (with the exception of insulin) will not be reimbursed without a prescription. . . . In the alternative, the employer may amend those documents to provide that no expenses for OTC medicine and drugs will be reimbursed, even if the participant obtains a prescription." (McGuireWoods)
[Guidance Overview] Amend Health Care Flexible Spending Account / Health Care Reimbursement Plans by June 30, 2011 (PDF)
"Before reimbursing for a drug or medicine, the group health plan must substantiate that a prescription was obtained. The plan may obtain a copy of the [pres]cription, but an acceptable alternative is to obtain a receipt identifying the patient, the date and amount of the purchase, and an Rx number. A receipt without an Rx number should be accompanied by a prescription." (Hanson Bridgett LLP)
Legislation Would Tax Some FSA, HSA Distributions
"Legislation approved by the House would require account holders to pay taxes on distributions from health care flexible spending accounts . . ., health savings accounts . . . and Archer medical savings accounts that were used to pay for abortion services." (Towers Watson)
[Guidance Overview] Some Cafeteria Plans Must Be Amended by June 30 (PDF)
"Cafeteria plans that have not yet been amended could be amended by adopting the following amendment: Notwithstanding anything to the contrary contained herein, expenses incurred after December 31, 2010 for drugs or medicine (other than insulin) are eligible for reimbursement only if accompanied by a prescription." (Paul, Hastings, Janofsky & Walker LLP)
House Passes Bill Restricting FSA or HSA Abortion Reimbursement
"The measure . . . would require that FSA and HSA reimbursement for abortion related expenses would be added to employees' taxable income. Under current law, such reimbursements are tax-free." (Business Insurance)
Public Employer and Employee Savings on Premium Contributions with a Section 125 Plan
"To help offset . . . additional cost to employees, many public employers are examining a Section 125 plan, also known as a Premium Conversion Plan, POP, or Flex Plan. A Section 125 plan allows employees to make their premium contributions pre-tax ? before federal, state, local, FICA, or Medicare taxes." (Kushner & Company)
FSA Proponents Press Lawmakers for Changes to PPACA Provisions
"The Employers Council on Flexible Compensation (ECFC) is fighting to repeal parts of the health care reform law that establish annual caps for flexible spending arrangements and require a prescription for over-the-counter medications to be reimbursed under FSAs." (Employee Benefit News; free registration required)
House Committee OKs Bill Restricting FSA, HSA Abortion Reimbursements
"Employees no longer could receive tax-free reimbursement from their flexible spending accounts or health savings accounts for out-of-pocket expenses related to most abortions under a bill the U.S. House Ways and Means Committee approved Thursday." (Business Insurance)
[Guidance Overview] Cafeteria Plans, HRAs and External Appeals Requirements
"This article is meant to explain in detail how the external appeals requirements apply to Cafeteria and HRA plans. We will first discuss which Cafeteria and HRA plans are subject to the external appeals requirements and then discuss those requirements (and their effective dates) in detail." (CCH INCORPORATED)
Text of H.R. 1004: ''Medical FSA Improvement Act of 2011' (PDF)
"To amend the Internal Revenue Code of 1986 to increase participation inmedical flexible spending arrangements." (U.S. House of Representatives via American Benefits Council)
Congressmen Introduce Bill to Drop 'Use it or Lose it' FSA Provision
"[The bill the congressmen] put forward would allow participants to cash out any remaining FSA balances at the end of the year, and those funds would be treated as normal, taxable wages. Currently, unused FSA funds are forfeited back to the employer at the end of the year." (PLANSPONSOR.COM)
Patients Pound on Doctors' Doors for FSA-Eligible Prescriptions
"Patients are demanding doctors' orders for over-the-counter products because of a provision in the health-care overhaul that slipped past nearly everyone's radar. It says people who want a tax break to buy such items with what's known as flexible-spending accounts need to get a prescription first." (The Wall Street Journal)
[Guidance Overview] A Review of Recent Developments in Employee Benefits and Executive Compensation
The review covers the following: liabilities to ERISA pension and welfare plans when planning and executing an acquisition of a company; Lactation Supplies as Medical Expenses; Determination Letter Five-Year Cycle; Guidance Regarding Termination of 403(b) Plans; and, Illinois Civil Union Law Impact on Employee Benefit Plans. (Blank Rome LLP)
[Guidance Overview] IRS Treats Breast Pumps and Lactation Supplies as Medical Care Expenses
"The IRS now concludes that breast pumps and supplies, like obstetric care, affect a structure or function of the lactating woman's body and are, therefore, medical care expenses. The IRS will revise Publication 502 (Medical and Dental Expenses) to include this information." (The Segal Group, Inc.)
Legislation Would Give Troops Flexible Spending Accounts
"Military service members would be able to sock away money for health care and other expenses in flexible savings accounts under a bipartisan bill House and Senate lawmakers unveiled on Thursday." (Government Executive)
[Guidance Overview] IRS Concludes Lactation Supplies Are Tax Deductible Medical Expenses (PDF)
"The IRS decision reflects a public policy trend in favor of supporting breast feeding mothers. Under the Patient Protection and Affordable Care Act, employers must provide a private place, other than a restroom, that can be used by an employee to express breast milk. Under the law, only companies with fewer than 50 employees can claim that the requirement imposes an undue hardship." (Buck Consultants)
[Guidance Overview] IRS Qualifies Breast Pumps and Lactation Supplies as Medical Care Expenses
"Health FSA and HRA administrators will want to take note of this new guidance, which is a change from previous statements by IRS and Treasury officials about breast pumps and related equipment . . . ." (Thomson Reuters/EBIA)
Newly Introduced Bill Would Repeal Limits on FSAs, HSAs
"The measure repeals the cap on $2,500 cap on [FSA] contributions, and repeals the provision that requires patients using [HSAs] or FSAs to have a prescription from their doctor before they purchase over-the-counter medication." (PLANSPONSOR.COM)
Don't Forget to Amend Your Cafeteria Plans
"Cafeteria plans with health flexible spending accounts may need to be amended to address [new limitations and] any such amendments must be adopted no later than June 30, 2011." (Reish & Reicher)
[Official Guidance] Text of IRS Announcement 2011-14: Breast Pumps and Lactation Supplies Are Medical Expenses (PDF)
"[B]reast pumps and supplies that assist lactation are medical care under [Code section] 213(d) of the Internal Revenue Code because, like obstetric care, they are for the purpose of affecting a structure or function of the body of the lactating woman. Therefore, if the remaining requirements of section 213(a) are met (for example, the taxpayer's total medical expenses exceed 7.5 percent of adjusted gross income), expenses paid for breast pumps and supplies that assist lactation are deductible medical expenses. Amounts reimbursed for these expenses under flexible spending arrangements, Archer medical savings accounts, health reimbursement arrangements, or health savings accounts are not income to the taxpayer." (U.S. Internal Revenue Service)
Lobbyists Challenging Limits on Health Flexible Spending Accounts
"The repeal effort will move ahead next week when Sen. Kay Bailey Hutchison, R-Texas, and Rep. Erik Paulsen, R-Minn., are expected to file bills that would allow FSA money to once again pay for OTC medications. The legislation also would eliminate the law's $2,500 annual limit on contributions to FSAs, a provision that takes effect in two years." (Henry J. Kaiser Family Foundation)
[Guidance Overview] Debit Card Reimbursement of Over-the-Counter Drugs
"[L]ast month, in Notice 2011-5, the IRS modified its previous position on debit card reimbursement of OTC drugs. Effective January 16, 2011, the IRS will permit the continued use of health FSA and HRA debit cards to buy OTC medications at drug stores and pharmacies, at non-health care merchants that have pharmacies, and at mail order and web-based vendors that sell prescription drugs . . . ." (Faegre & Benson LLP)
[Guidance Overview] New Guidance Permits Use of Debit Cards to Buy OTC Drugs after January 15
Excerpt: "Notice 2011-5 . . . modifies the government's earlier position and allows health FSA and HRA debit cards to be used after January 15, 2011 to purchase prescribed OTC drugs or medicines if certain requirements are met. The [following] purchases can made by debit card, and considered fully substantiated at the point-of-sale: . . . " (Deloitte via BenefitsLink.com)
[Guidance Overview] IRS's Rule Change on Using Debit Cards for OTC Drugs
Excerpt: "This WorkCite deals specifically with IRS Notice 2011-5, which modifies previous IRS guidance that would have barred the use of certain debit cards to pay for expenses incurred for over-the-counter . . . medicines and drugs. The rule affects reimbursements under health flexible spending arrangements . . ., and health reimbursement arrangements . . . ." (McGuireWoods LLP)
[Guidance Overview] IRS Clarification of Rules for Debit Cards to Reimburse Over-the-Counter Drugs
Excerpt: "IRS guidance clarifies that health reimbursement arrangement and FSA debit cards complying with certain conditions may reimburse for prescribed over-the-counter . . . drugs. Participants who give a valid prescription and receive an Rx number, among other things, may buy OTC drugs with debit cards from pharmacies, non-health care merchants with pharmacies, mail order and web-based vendors." (Mercer LLC)
[Guidance Overview] IRS Guidance on Health FSA and HRA Debit Card Use for Over-the-Counter Drugs
Excerpt: "Employers who allow health FSA or HRA debit card use under their plan should begin now to communicate the changes to their employees, coordinate with their third party administrators for the FSA or HRA plans and evaluate any necessary amendments to their plan documents." (Ford & Harrison LLP)
[Guidance Overview] IRS Adjusts Rules on Health Insurance Debit Cards
Excerpt: "The Internal Revenue Service issued new guidance allowing the continued use of flexible spending arrangement and health reimbursement arrangement debit cards for the purchase of prescribed over-the-counter medicines and drugs." (Employee Benefit News; one-time free registration required)
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