Reimbursement Account Service Update
System Improvements Making An Impact  Our Reimbursement Account Service now gives both clients and participants real-time access to account information. Since January, we've received positive feedback from clients and participants alike. We have addressed issues and implemented changes quickly to enhance our service foundation for the long run. Below are a few highlights resulting from the changes we've made:
Claims Turnaround Time: Claims are being processed and checks mailed without delays. For Daily Reimbursement Clients, claims are being processed within two business days of receipt.
HR Access: We rolled out the ability to generate reports, view/manage participant account information and review customer service inquiries 24/7. If you'd like to learn more about how to use the new site, please contact your Crosby consultant to arrange a tutorial.
At the end of March, hold times for participants calling our Reimbursement Account Center were longer than our preferred time. Our intent is to reduce these so that 80% of calls are answered within 30 seconds and all calls are answered within two minutes.
Remember, our phone, fax and mailing address have changed. By utilizing the new contact information, faxed and mailed claims go directly to our scanning vendor to expedite the timing of our claims processing. Reimbursement account phone calls are directed to our dedicated team answering reimbursement related questions.
PO Box 25172
Lehigh Valley, PA 18002-5172
Phone: 866-918-9711
Fax: 978-367-9626
For those participants who mail claims to the Needham PO Box, we will notify them by postcard to remind them that their claims will be processed faster if they are mailed to the new address. Calls or claims directed to the old phone and fax numbers and mailing address will continue to be received and processed as normal. |
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COBRA ARRA Extended Again
Additional Changes Likely On Their Way  A further COBRA ARRA extension is expected to be announced soon which will continue subsidy benefits beyond March 31st. However, Crosby has implemented changes for the extension to March 31st, which was announced in early March 2010. Confusing, isn't it?
As part of the extension to March 31st, we will re-notify any Qualified Beneficiary who experienced an involuntary termination of employment between March 2nd and March 31st and follows a qualifying event that was a reduction in hours that occurred at any time from September 1, 2008 through March 31, 2010. Please note: if you have someone with this scenario, and you sent their qualifying event as something other than “reduction in hours”, we will not be able to identify them unless you notify Crosby. Please notify us if you believe you may be in this situation. |
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Our Claims Appeal Process Has Changed
Participant's have 6 Months to Appeal of a Denied Claim
 Now that many clients' March 31st deadline has passed for the 2009 plan year run-out, below is a summary of the modified process that your employees may follow if they would like to appeal a denied claim.
Participants may appeal our decision by resubmitting their claim within six months of the date of their Explanation of Unreimbursed Claims (Denied Claims Letter). Previously, a written request with a number of informational requirements was required. Going forward, resubmitting the denied claim with the all of the necessary required claims information will suffice, along with a copy of the Denied Claims Letter.
Participants may refer to CrosbyBenefits.com for guidance on eligible expenses and claim filing instructions.
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National Health Care Reform Update
How Will FSAs Be Affected By The New Health Care Reform Law
 March 23, 2010 will be remembered as a historic day as President Obama signed into law dramatic health care reform. The effect on FSAs, while less dramatic, is still significant. The two changes are:
► OTC medication/drugs will require a doctor’s note; Effective January, 2011
► Medical FSAs must be limited to $2,500; Effective January 2013.
OTC (Over-the-counter) Change for 2011
Effective January 1, 2011, over-the-counter medications and drugs will require a doctor's note (also known as a letter of medical necessity) to be eligible for reimbursement. This change will go into effect as of January 1, 2011, regardless of the plan year. Here are some FAQs regarding this change:
Q: Will band aids and blood sugar test kits continue to be eligible expenses without a doctor's note?
A: Yes, because band aids/test kits are medical supplies and not a medicine/drug.
Q: Does this new rule apply for all expenses incurred on or after January 1, 2011?
A: Yes, this change goes into effect at "the stroke of midnight" and will apply to all expenses incurred on or after January 1, 2011, regardless of plan year.
Q: Will 2010 plan year grace period OTC medication expenses (like aspirin and cold medicine) require a doctor's note?
A: Yes.
Q: If an employer has a plan year of April 1, 2010 to March 31, 2011, when will this change go into effect?
A: The change will be effective on January 1, 2011.
Q: Is there expected to be any IRS clarification/discussion on this rule change?
A: This remains unclear. No upcoming guidance has been announced by the IRS.
Q: What will be the affect on Inventory Information Approval Systems (IIAS) for debit cards as it relates to this change? Should we expect to see IIAS go away, or is it more likely that the list of eligible items (not requiring substantiation) will be dramatically reduced?
A. This remains "to be determined" but it is more likely that the list of eligible items will be reduced (rather than IIAS go away altogether)
Medical FSA $2,500 Limit Effective 2013
Also, as importantly, effective for taxable years starting 2013, there will be a limit on Medical FSAs deductions. This limit will be $2,500 for 2013 and will be indexed to the Consumer Price Index starting in 2014. We will continue to keep you apprised of any other requirements that must be met at the outset of the 2011 plan year.
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Transit Card Guidance Delayed Again
IRS Revenue Ruling Pushed Back to January 1, 2011
 In 2006, the IRS issued Revenue Ruling 2006-57 that provides guidance for employers about the use of debit or credit cards, smartcards, or other electronic media to provide qualified transportation fringes under Internal Revenue Code sections 132(a)(5) and 132(f). The ruling essentially outlines the allowable uses of the cards in relation to offering pre-tax transit benefits.
Originally set to go into effect on January 1, 2008 it was initially delayed until January 1, 2009. Once again, the effective date has been moved back, this time to January 1, 2011, as a number of transit systems still need time to update their technology in order to make it compatible with the requirements for vouchers set forth in original ruling.
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The Crosby Connection Newsletter is intended for Crosby Client Contacts. © 2010 Crosby Benefit Systems
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Apr. 15: Federal Income Taxes Are Due
Apr. 19: Crosby will be closed for Patriot's Day
Apr 22: Earth Day
May 9: Mother's Day
May 31: Crosby will be closed for Memorial Day
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Need a Team Roster?
Our organizational design utilizes a client-centered team approach to best meet your needs. If you're interested in receiving a team roster, please email us here to request a complete roster with contact information. |
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...Commuter Benefit Programs can add revenue?
> Quick Implementation
> Easy-To-Use
> All Major Metro Areas Covered
> Single System
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....We can manage your HIRD Form process?
Are you complying with your 30-day deadlines?
> After Open Enrollment
> New hires who turn
down coverage
> Employees who drop coverage
Our process is designed to distribute, track and store Employee HIRD Forms so that you don't have to.
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For more information about any of our services, please contact Jean Sicurella via email or call 617-630-0496. |
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