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Reminder:
Critical FSA Change Takes Effect January 1st
FSAs & Debit
Cards To Be Affected By New Health Care Reform Law
 At the "stroke of midnight" on January 1,
2011, the first major change affecting Flexible Spending Accounts, as
outlined by the National Health Care Reform Law, will take effect. The
change will require that all over-the-counter (OTC) medications and
drugs be prescribed by a physician to be eligible for reimbursement,
regardless of your plan year. It will apply to all expenses incurred on
or after January 1, 2011 which means that 2010 plan year grace period
OTC medication expenses (like aspirin and cold medicine) will require a
doctor's prescription.
Flex Debit Cards will be affected as well. OTC drugs and
medicines will remain eligible with a doctor's prescription. However,
most Inventory
Information Systems (IIAS) will be updated with the
Eligible products criteria to reflect movement of these items from the
“Eligible” to “Dual Purpose” category. Eligible items, such as band
aids, will continue to be approved at the point-of-sale, while Dual
Purpose items, such as Aspirin and Cough Medicine, will require a
doctor’s prescription and will no longer be automatically approved by
an IIAS. This means that participants will need to pay with a different
form of payment and submit a claim manually for reimbursement of these
items.
Crosby will
continue to keep you informed of any changes related to this Law. CrosbyBenefits.com
and MyCrosbyBenefits.com
have been updated with this information (including our list of Eligible
Medical Flexible Spending Account Items) and
participants are being notified via USPS.
If you should have any questions, please contact your Crosby
Consultant: Darla Rosenfeld,
Linda Fulton
or Max Crosby.
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Possible
Decrease For 2011 Transportation Benefits
Unless
Congress Acts, Transit Benefit Likely To Be Reduced
 Last year, as part of the American Reinvestment and
Recovery Act (ARRA), language was included that temporarily established
an equal fringe benefit amount of $230/month each for both parking and
transit. This provision is set to expire at the end of this calendar
year. At this time, no action has been taken to extend this benefit
amount, which means that as of January 1, 2011, the transit and
vanpooling amounts will revert back to their pre-ARRA value of
$120/month until action is taken (possibly due to cost of living
adjustments). Parking will remain at $230/month. Crosby will take steps
to make all necessary changes as they relate to our ordering platform
and claims processes and we will keep you apprised of any new
developments as they occur.
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Are Your
Documents Up-To-Date?
We Can Help
With Your Section 125 Plan Documents
 Crosby works hard to stay informed of all regulatory and
legislative changes in the health and welfare benefits arena. To
accommodate this rapidly changing environment, we offer clients a Plan
Document service that provides customized Model Plan Documents and
Summary Plan Descriptions (SPDs). Plan Documents and SPDs are mandatory
for your organization; these documents outline plan rules and provide
an explanation to participating employees about how your health plans
operate. Part of our service also includes the option to enroll in
automatic updates. When there are any applicable changes to the law, we
automatically provide you with an amendment to your plan document.
We are currently in the process of adding language related to the
forthcoming Flexible Spending Account OTC changes to our documents.
When ready, we will roll out amendments to current Plan Document
Service clients. We also recommend that you review your current documents
to determine if any updates need to be made (e.g. eligibility language
related to Massachusetts Health Care Reform).
If your organization does not have its Section 125 Plan Documents, or
if your current documents need updating, we’re here to help. For more
information about enrolling in this service or updating your existing
documents, please contact your Client Consultant: Darla
Rosenfeld, Linda Fulton or Max
Crosby.
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FSA Videos
Available Via CrosbyBenefits.com
These Valuable
Tools Will Help Boost Enrollment
 At Crosby, we strive to deliver creative solutions and
exceptional service that exceed your expectations. We also know how
important it is to offer you tools to communicate to your employees the
advantages of their benefits.
We are happy to offer you two video presentations that you and your
employees may access directly through CrosbyBenefits.com.
Both videos detail the benefits of our Flexible Spending Account (FSA)
programs and include information about the upcoming Health Care Reform Changes;
one that includes details about the Flex Debit Card and one that does
not. Conveniently, all you or your employees need to do is go online to
watch these presentations.
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Crosby Chooses
New Banking Partner
Improved
Processes and Functionality Is On The Way
 After a review of our current banking relationship, we
have decided to change our banking partner. We have chosen to change from
Eastern Bank to Rockland Trust to improve internal processes, reduce
costs, and offer new capabilities.
This change will have an effect on some aspects of our Billing Services
(COBRA, retiree billing, direct billing, etc.). For those clients using
Crosby’s lockbox (the PO Box to which billing payments are mailed by
participants), there will be a new Payment Mailing Address. This new
address will also be in Boston but will have a different PO Box Number.
This new address is now up and running.
We are in the process of updating our materials, communications and
systems to reflect this change. Crosby will communicate this change to
billing participants over the next several months.
Please Note:
Any payments received at the Eastern Bank lockbox address will
automatically be forwarded to the New Payment Address.
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News In Brief
IRS Delays New
Employer Reporting Requirement for W-2
 On October 12th, the IRS delayed the new requirement for
employers to report the cost of coverage under an employer-sponsored
group health plan, which makes those reports by employers optional for
2011. The new requirement is outlined within Notice 2010-69.
Also released was a draft of Form W-2 for 2011. Both
the US Treasury and the IRS determined that this relief is needed, as
employers need more time to prepare their payroll systems and/or
procedures in preparation of this new requirement. Guidance on this new
requirement will be provided by the end of 2010.
The IRS has indicated that the amounts reported are not taxable, they
are for informational use only. As per the Affordable Care Act
tax provisions, these amounts are intended to give employees greater
insight into health care costs in general.
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The Crosby Connection Newsletter is
intended for Crosby Client Contacts.
© 2010 Crosby Benefit Systems
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Nov 11: Veterans Day.
Nov 25:
Happy Thanksgiving. Crosby's offices will be closed November 25-26th.
Dec. 9:
NEEBC Holiday Conference 2010
featuring the NEEBC's "2010 Best Benefits Practice" Awards.
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Go Green!
Reimbursement Clients: Please help us promote our Go Green! program,
offering E-Communications and Direct Deposit. Enrollees will benefit by
receiving many communications via email and faster claim payments. Participants
may sign up at MyCrosbyBenefits.com.
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Need a Team Roster?
We use a client-centered team approach to best meet your needs. For
your team roster, please email us here.
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...You can streamline your commuter program and add
revenue?
> Quick Implementation
> Easy-To-Use
> All Major Metro Areas Covered
> Fully Automated
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....We can manage your HIRD Form
process?
Are you complying
with your 30-day deadlines?
> 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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