health care FSA Archives - Employee Benefits I AP Benefit Advisors

CARES ACT – Impact on HSAs, HCFSAs, and HRAs

This advisory summarizes key provisions in the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) applying to employee benefit plans. Over-the-Counter (OTC) Drugs and Menstrual Care Products (optional) The CARES Act states that consumers can purchase OTC drugs and medicines with funds from their Health Savings Account (HSA), Health Care Flexible Spending Account (HCFSA) […]

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The IRS weighs in on HCFSA Carryover and Reimbursement Mistakes

A.  IRS Provides Guidance on Correcting Health Care FSA Reimbursement Mistakes.  The IRS has released a Chief Counsel Advice (CCA) memorandum that provides guidance on correcting HCFSA payments for expenses that are not properly substantiated or are later determined to be ineligible for reimbursement (improper payments). Issues addressed include whether the correction procedures for improper […]

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Treasury Modifies "Use-it-or-Lose-it" Rule for Health Care Flexible Spending Accounts

Moments ago, the Department of Treasury issued a press release, IRS Notice 2013-71 and an informational fact sheet announcing a major policy change relating to Health Care Flexible Spending Accounts (HCFSAs) that has many positive implications for all HCFSA constituents – including administrators, employers and participants.  The Department of Treasury has modified its HCFSA “use-it-or-lose-it” […]

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The IRS has relaxed PPACA’s $2500 HCFSA cap for non-calendar year HCFSAs

Yesterday the IRS provided some relief for non 1/1 HCFSA plans.   Under current law there is no dollar-limit-cap on HCFSAs.  However, since HCFSAs contain a “uniform coverage provision”, meaning that the entire annual election is made available on the first day of the plan year, employers self-regulate their HCFSAs caps.  Employers that are worried about […]

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