Compliance Watch: FSA

  • Verifying FSA Expenses When Using a Debit Card

    Use the prepaid benefits card to reduce administrative and participant worries as certain claims may be paid without any additional substantiation due to auto-adjudication.

  • Non-excepted Health Flexible Spending Accounts

    A Health Flexible Spending Account should be designed to qualify as an excepted benefit in order to comply with healthcare reform and other mandates. When a Health Flexible Spending Account is not designed to qualify as an excepted benefit the Health Flexible Spending Account is then considered a non-excepted benefit. The following issues will arise with a non-excepted Health Flexible Spending Account:

  • Cadillac Tax and FSA, HRA & HSA Plans

    Beginning in 2018 {now delayed until 2020 under the Consolidated Appropriations Act, 2016} healthcare reform will require employers to pay an excise tax on certain high cost employer-sponsored health coverage. Thus, this tax will apply to coverage provided in 2019 and is payable in 2020. This tax is referred to as the Cadillac tax.