Must requests for reimbursement be submitted by the last day of the plan year
No. Participants have up to 90 days after the end of the plan year to make requests for reimbursement.
What happens to amounts left over in an employee’s account if they have not been used during the plan year?
Amounts not used during the plan year cannot be returned to an employee. These forfeitures go to the employer. Most employees individually do not leave much money in their accounts. There will, however, be amounts left which may be used by the employer to offset plan costs.
How are requests for reimbursement made?
Throughout the year, employees may request reimbursements by completing a claim form and attaching appropriate receipts showing that eligible expenses have been incurred. These can be mailed, faxed, scanned/emailed to Claims@FlexBank.net or uploaded securely to the FlexBank mobile site. FlexBank reviews and pays claims daily. The employee may be reimbursed via check or direct deposit. […]
Are all taxes avoided on earnings deposited to a Flexible Spending Account?
Employers do NOT match Social Security, Medicare or pay Workers Compensation premiums (in Ohio) on contributions their employees make to the Plan. Tax savings to the employer will average 8% of contributions made. Employees do not pay Social Security, Medicare, Federal, State and Local (in Ohio) taxes.
Must an employee’s full annual election be available for reimbursement at any time during the year or are reimbursements only made as monies are withheld?
IRS rules for a Health Care Reimbursement Account require that the employer make the full annual election available for reimbursement throughout the year regardless of how much an employee has contributed. This rule has caused some concern by employers offering Flex plans. The objection to this rule, however, has turned out to be more emotional […]
What is involved in administering an HRA?
Most HRAs self-fund all or part of a deductible. Claims are paid directly from Explanation of Benefit (EOB) reports provided to participants by insurance companies once a claim has been settled. FlexBank then reimburses the participant for eligible expenses per the HRA plan design.
Can an employer self-administer an HRA?
Yes. However, the complexity of self-administering an HRA has increased due to CMS reporting requirements. Employers who sponsor an HRA must generally report, electronically, information on HRA participants and benefits to the Centers for Medicare and Medicaid on a quarterly basis. Failure to report may result in penalties of $1,000 per dependent per day.
What is the cost to outsource administration of the plan?
Employers should call FlexBank for pricing on outsourcing the administration of the plan.
What HRA services does FlexBank perform for the associated fees?
Fees Include: Quarterly reporting to the Centers for Medicare and Medicaid (CMS) when required Reimbursements processed within 24 business hours Fax, mail, scan/email, upload via mobile site or walk into our office for reimbursement Receive, review, and process all HRA claims upon receipt Reimbursements made by check or direct deposit Provide employee 24 hour Web […]
May an employee receive cash in lieu of a deposit to his HRA?
No. The right to receive cash in lieu of an HRA deposit will disqualify the plan.