Great Enhancements to Reimbursement Account Service
Improvements Coming In January 2010
 Crosby continues to invest in the best technology available. Thanks to client and participant feedback, we will introduce significant enhancements to our Reimbursement Account system for January. These changes will improve the user experience for both clients and participants. We are pleased to add following features:
► New Client portal which will allow clients the ability to view and manage participant account information; run reports in various file formats and monitor statistics, analyze funding and review customer service inquiries 24/7
► Redesigned Participant portal which includes an improved online experience with easier site navigation; one Username and Password for all Crosby services; access to submitted claim images and in-depth information about debit card purchases and card status (if applicable)
Please note: For Clients who offer the debit card (regardless of plan year):
♦ Active debit cards will be deactivated on December 31, 2009
♦ Participants will receive their new debit card by early January
Also Announcing… All-In-One Funding
In addition to the website related changes, Crosby will introduce a new funding method called “All-In-One” Funding. This new solution means one method of funding for reimbursement checks, direct deposits and debit card transactions (if applicable).
The benefits of our All-In-One Funding include:
► All transaction types come out of one account
► Daily claim reimbursement
► Weekly funding to Crosby to cover all reimbursement types
► Overdraft coverage at no charge
Here is a snapshot of the “All-In-One” Funding:
Client makes available 5% of total FSA annual election 10 days before the start of the plan year. Then, at the end of the first week of the plan year (and each week thereafter), you will receive a report detailing that week’s reimbursements via check, direct deposit and debit card (if applicable). We will then pull funds (equal to that week’s reimbursements) to again hold 5%.
Reimbursements will be issued daily, while Crosby only needs funds provided on a weekly basis. The “overdraft coverage” means that if reimbursement totals exceed the 5% balance during the week, Crosby covers the excess at no charge. More information is on the way… we will continue to update you and participants in the coming weeks. A Crosby Coordinator will contact you to discuss these enhancements. If you have questions in the meantime, please email Linda Fulton or Max Crosby (Darla Rosenfeld is on maternity leave). |
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Catch the Renewal Wave 2010
Don't Forget to Sign Us Up For Your Benefit Fair
 To request our participation, please email Tina Crosby with the date & time of your fair, estimated attendance, specific location, parking arrangements and whether we should contribute a raffle prize. Crosby will attend benefit fairs upon request, subject to availability. Call your Crosby Consultant to learn more about preparing for your renewal season. |
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National Health Care Reform Update
Encourage Congress Not To Change FSAs
 Members of Congress continue to narrow down Health Care Reform bills in an attempt to come to an agreement. While there are several other bills in the works, we are focused on the Senate Finance Committee (SFC) bill. The SFC bill, if passed today, would have the following impact on FSAs: 1. Beginning 1/1/2010: Over-the-counter and non-prescription items would require a doctor’s note.
2. Beginning 1/1/2011: There would be a $2,500 FSA cap
3. Beginning 1/1/2013: An Excise Tax on “Cadillac plans” would take effect. Presently, the excise tax would kick in on individual plans that cost $8,000 or more and family plans that cost $21,000 or more. Items to be included in the calculation for “capped numbers” include Medical, Dental, Vision and Supplementary Medical Plans, as well FSAs, HRAs and HSA. As described, employers would be required to track these numbers and report on employee W2 Forms.
If you are interested in getting more involved in efforts to affect this legislation, please email Harvey Crosby.
Don't forget, SaveMyFlexPlan.org is a fantastic website designed to help you keep informed with pending changes to FSAs. You can:
► Sign up for email alerts
► Use the effective "Call Your Members of Congress" feature
► Calculate the potential impact of the elimination of FSA
► Get access to helpful news links and personal stories
If any of these proposals were to pass today, they would have a detrimental impact on FSA participants. Help preserve this valuable employee benefit by reaching out to your representatives in Congress to voice your opinions, as we have. |
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Flex Debit Card 90% Rule Exception
Some Transactions Adversely Affected by IIAS Transition
 As of July 1st, our debit card system was setup with a special "exception" to accept transactions from pharmacy merchants who self-certify with SIGIS as adhering to the IRS' 90% Rule. This step was taken to prevent participants from having to notify Crosby of individual pharmacies needing to be setup with this exception on a merchant-by-merchant basis. The 90% Rule states that if a drug store or pharmacy, on a store location by store location basis, has gross receipts of 90% or more during the prior taxable year consisting of items which qualify as medical expenses, they may accept Flex Debit Cards without implementing an Inventory Information Approval System (IIAS).
Overall, the new IRS rule has had a reasonably low impact on participants. Prior to July 1st, some exceptions were made to approve all transactions from certain Pharmacy Benefit Managers (PBMs), including Express Scripts, Medco and Scrip Rx. However, since July 1st, transactions at all merchants who fall under the 90% Rule will be auto-approved only if they match existing co-pay or recurring expense values. Otherwise, receipts will be requested to approve transactions. We are currently working to determine if we can implement a broader rule for other amounts from a technical and a compliance perspective. |
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ARRA Q&A Resource Now Available For Employees
IRS Delivers Useful Information On COBRA Subsidies
 A helpful question and answer (Q&A) section has been added to the IRS website for employees (both current and former). The new page answers questions about the COBRA rule changes set forth in the American Recovery and Reinvestment Act of 2009 (ARRA) as related to changes in eligibility and the taxability of subsidies. Under ARRA, employees terminated involuntarily (and their qualified beneficiaries) between September 1, 2008 and December 31, 2009 may apply for a reduction of COBRA premiums for a period of up to nine months. Individuals are responsible for 35% while the federal government subsidizes the remaining 65% of the premium. |
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The Crosby Connection Newsletter is intended for Crosby Client Contacts. © 2009 Crosby Benefit Systems
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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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...Commuter Benefit Programs can add revenue?
> Quick Implementation
> Easy-To-Use
> All Major Metro Areas Covered
> Single System
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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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2010 HSA Limits The IRS has released the Health Savings Account (HSA) Annual Maximums for 2010:
Individual: $3,050
Family: $6,150
The HSA maximum annual catch-up contribution will remain at $1,000 for individuals who are age 55 and older. |
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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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