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27Christina Street Newton, MA 02461


CROSBY Connection: June 2012

IRS Guidance For 2013 $2500 FSA Limit

MBTA Fare Increases Coming 7/1/2012

Reimbursement Account Portal Updates

More From the IRS: 2013 HSA Limits & CER Fees




Jun 6: NEEBC Benefits Fair, Norwood, MA.

Jul 4: The Crosby offices will be closed.



Did You Know . . .


. . . You can streamline your commuter program and add revenue?

> Quick Implementation

> Easy-To-Use

> All Major Metro Areas Covered

> Fully Automated


. . . 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. 


For more information about any of our services, please contact Jean Sicurella via email or call 617-630-0496.



Get A Team Roster


We use a client-centered team approach to best meet your needs. For your team roster, please email us here.

IRS Issues Guidance For The 2013 $2500 FSA Limit


Description: Description: News FlashAs part of the Patient Protection and Affordable Care Act, a new $2,500 limit will be imposed on Medical FSA annual elections beginning January 1, 2013. The IRS recently issued guidance (Notice 2012-40) related to how the rule will apply to fiscal year plans (non-calendar year plans, i.e. those not starting on January 1). It indicates that "taxable year" refers to the plan's "plan year." Therefore, the rule will not affect any plans beginning prior to January 1, 2013 and fiscal plan years will not be impacted until the first plan year beginning on or after January 1, 2013. This is great news!!

Also included: plan sponsors will have until the end of the Calendar Year 2014 to amend their plan. Other pertinent information from the guidance:

* The limit only applies to salary reductions; it does NOT apply to non-elective contributions.
* Unused amounts carried over during a grace period are not counted towards the $2500 limit.
* Comments are requested regarding use or lose guidance.

If you have questions about these forthcoming changes, please contact your client consultant: Darla Rosenfeld, Linda Fulton or Max Crosby.



MBTA Fare Increase Effective July 1, 2012

Average Increase Between 20-23% 


Description: Description: CommuterThe MBTA fare increase will take effect on July 1, 2012. The average fare increase is between 20-23%. CharlieCard bus fares will increase from $1.25 to $1.50 and CharlieCard rapid transit fares will increase from $1.70 to $2.00. This rate change will be implemented for the July benefit month.

*Important Note: The 12-Ride Ticket will be discontinued effective July 1st and will no longer be accepted by the MBTA after June 30th. All 12-Ride Tickets will be replaced with a new 10-Ride CR Adult Fare Ticket so that there is no interruption in benefit service to the participant. If the participant does not want 10-Ride Tickets, they must update their order accordingly before their respective cut-off date.

Crosby has sent an email notification to all affected commuter participants.



Enhancing The Client & Participant Experience
Reimbursement Portal Features Added


Description: Description: ReimbursementThe Reimbursement Account Portal was recently updated with a host of new features that are now available to both clients and participants. We are excited to be able to share these enhancements with you. Highlights include:

  • Participants may download a statement containing transactions of a specific account. This feature is located on the employee Account Activity page.
  • The system will now save usernames for Client users via the Employer login. Just click the "Do you want to remember this computer for future use" button on the login page to save this information (client only).
  • Paid claim amounts have been added into the forfeiture amount in the forfeiture report (client only).
  • Debit Card member detail reports no longer include duplicate records for participants with multiple elections (client only).

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Description: Description: Mobiel App TNReimbursement Portal Mobile App Update: As part of our beta testing process, we are seeking a select number of clients who would like to test the new Mobile App with your participant population. Volunteering will require that we turn the Mobile App option on for all participants. If you are interested, please contact your client consultant: Darla Rosenfeld, Linda Fulton or Max Crosby.


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Implementing an integrated Health Savings Account? 

Let Crosby Help. As HSA compatible plan offerings grow in popularity, a simplified process is key. Crosby will assist you with coordinating all delivery aspects of HSAs, from initial communication to ongoing administration. In addition to a variety of investment options, account holders will have 24-hour access to their account information via for applicable HSA, FSA and/or HRA accounts, Commuter Benefits and the E & E Benefits Portal.

To learn more about Crosby's HSA solution, email Darla Rosenfeld or call 617-630-0468.



Two More Important Items From the IRS
2013 HSA Limits and Proposed Regs For CER Fees Announced


The IRS has released Revenue Procedure 2012-26 outlining the Health Savings Account (HSA) Annual Maximums for 2013. The amounts have increased slightly for 2013 (adjusted for inflation):

Individual: $3,250 (up from $3,100)
Family: $6,450 (up from $6,250)

The HSA maximum annual catch-up contribution will remain at $1,000 for individuals who are age 55 and older.


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The IRS has recently proposed regulations for Patient Centered Outcomes Research Trust Fund Fees (aka CER Fees). These fees will be payable beginning with plan years ending on or after October 1, 2012. The proposed rules will apply to self-insured health plans offering HRAs and Health FSAs that are not an excepted benefit (note: when referred to below, "FSA" refers only to a Health FSA that is not an excepted benefit). Fees will be determined based on one of four acceptable fee calculation methods: Actual Count method, Snapshot 1 method, Snapshot 2 method or the Form 5500 method.
If the HRA/FSA is stand alone, the plan sponsor must pay the fee with respect to the average number of covered lives during the plan year.

If the HRA/FSA is integrated with a fully insured major medical plan, the plan sponsor must pay the fee with respect to the average number of lives covered under the HRA/FSA during the plan year. An individual covered under both the HRA AND FSA would not have to be counted twice.

If the HRA/FSA is integrated with another self-insured major medical plan of the plan sponsor, each person covered under multiple arrangements is only counted once. However, if the HRA/FSA covers anyone who is not also covered under the self-insured major medical plan, then the plan sponsor must pay the fee with respect to average number of individuals covered only under the HRA/FSA.

Fees will need to be paid by the plan sponsor. Employers will need to file Form 720 by July 31 of the year following the calendar year in which the applicable plan year ended. Payment must be made with the filing.

Superior Outsourced Benefits Administration


Since 1976, Crosby has developed benefit programs for over 500 organizations. Crosby has built its stellar reputation by focusing on the design and delivery of quality benefit services. Crosby offers a wide range of benefit related services including: FSA, HRA, HSA, COBRA, Commuter Benefit Plans, Enrollment & Eligibility, Direct Billing, Tuition Reimbursement as well as customized services. Crosby is dedicated to its "High Tech and High Touch" approach, focusing on quality, customer service and creative solutions.


The Crosby Connection Newsletter is intended for Crosby Client Contacts.

2012 Crosby Benefit Systems