HCW Benefits Blog

[On June 10, 2010 we held a half day conference at the McKimmon Center in Raleigh titled, Healthcare Reform: The Employers' Guide. The following is a question submitted that we were unable to address due to time restriction.] 

Contributor:
Joy Binkley, Consultant
Hill, Chesson & Woody

A) What affect will the exclusion of OTC purchases (without prescriptions) have on debit card transactions?

Based on responses from SIGIS (the industry group that monitors IIAS eligible items and systems) of the approximately 40,000 items on the OTC list, about 20,000 - 25,000 will remain eligible to purchase.  The flex debit cards will block those codes that will require a prescription, and individuals will need to submit those receipts along with the prescription to get reimbursed.  HSA debit cards will work on all items, so it will be the responsibility of the individual to retain the prescription in the event they are audited.

B)  If the employer contributes to the employees' FSA thru a flex credit, will that impact how much they can contribute with the new cap in 2013?

As the reform language reads today, the $2,500 cap that will go into effect on January 1, 2013, is the maximum amount of the salary reduction for the health FSA. We currently view the employer contributions outside of this cap, and therefore could continue on top of the $2,500 amount. Further guidance may clarify this as we get closer to the date of enactment.