Description: Description: Description: Crosby Connect

Oct/Nov 2010 vol 1

Critical FSA Change Taking Effect January 1, 2011
FSAs & Debit Cards To Be Affected By New Health Care Reform Law


Description: Description: Description: part of the National Health Care Reform Law, the first of two significant changes affecting Flexible Spending Accounts will take effect on January 1, 2011. This change will require that a physician's prescription be provided for certain over-the-counter (OTC) medications and drugs to be eligible for reimbursement.

This change will go into effect at "the stroke of midnight" on January 1, 2011, regardless of the plan year and will apply to all expenses incurred on or after January 1, 2011. This also means that 2010 plan year grace period OTC medication expenses (like aspirin and cold medicine) will require a physician's prescription.

The second change, which will become effective for taxable years starting in 2013, will create a limit on Medical FSAs deductions. The limit has been set at $2,500 for 2013 and will be indexed to the Consumer Price Index starting in 2014.

Flex Debit Card purchases will be affected as well. Eligible items, such as band aids and blood sugar test kits will continue to be approved at the point-of-sale since they do not require a physician's prescription. However, Dual Purpose items, items that will require a doctor's prescription, such as Aspirin and Cough Medicine, will no longer be purchasable with your Flex Debit Card via an Inventory Information System (IIAS).

Crosby will continue to keep you informed of any changes related to this Law.

This means that you will need to pay for Dual Purpose items with a different form of payment and submit a claim manually and be reimbursed through a check or Direct Deposit.


Receive Reimbursements and Communications Electronically

Go Green! Sign Up Today


Description: Description: Description: encourage our Reimbursement Account Holders to Go Green! Enroll Now to receive E-Communications (e.g. Debit Card, Claims Submitted, Denial Notifications).

Click here to find out how to enroll in Direct Deposit and manage your Email Communication settings. Choosing these options makes communicating with you more efficient and your reimbursements will be received much faster. And of course, both help the environment too.


Helpful Hints About The Flex Debit Card

When Are Debit Card Receipts Required?


Description: Description: Description: employers offer the Flex Debit Card as a convenient enhancement to a Medical Flexible Spending Account (FSA). By using the card for eligible products and services, you will not need to submit claims and wait for reimbursement.

In general, you are required to submit receipts for:

► Co-payments (if not enrolled in employer's medical plan)
► Vision and dental expenses
► Other non-confirmable transactions

In general, you are not required to submit receipts for:

► Recurring expenses (the amount charged and merchant information must match the exact dollar amount and merchant information for each successive expense)
► Co-payments (if enrolled in employer's medical plan)
► Prescriptions
IIAS retailers

For more information about your Flex Debit Card, you may visit the FAQ section within the participant area of


Flexible Spending Account (FSA) Video Presentations

Enjoy A Short Video About How FSAs Can Benefit You
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Did you know? By participating in a Flexible Spending Account, you will not pay federal, state and/or Social Security taxes on your elected amount. This generally means a 20% to 40% savings! Please click one of the links below to begin the presentation:


FSA Overview Only

 FSA Overview w/ Debit Card


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Crosby CONNECT is intended for Crosby Participants (employees of Crosby clients).

2011 Crosby Benefit Systems, Inc.