Discovery Benefits RSS

Pharmacies and Drugstores IIAS Transition Period Expires June 30, 2009

Discovery Benefits — Tue, 16 Jun 2009 21:01:42 GMT

As you may know, the IRS issued new regulations in 2007 limited the use of health FSA debit cards to health-care related merchants and merchants who have an Inventory Information Approval System (IIAS) in place. IIAS is an automated system put in place by a merchant that approves eligible medical expenses at the point of purchase by matching the item's SKU to a list of eligible expenses. Overall, IIAS has been a great success by helping to reduce the substantiation participants need to submit under the IRS guidelines. A special transition period is in place that allows use of the debit card at pharmacies and drugstores as health-care related merchants. This special transition period is to end June 30, 2009.

HEALTH CARE REFORM INITIATIVE - CONTACT YOUR CONGRESSIONAL LEADERS TODAY

Discovery Benefits — Fri, 12 Jun 2009 13:36:26 GMT

Health care reform is inevitable and it will happen this year. This is what we are hearing from key Senators and Representatives. Based on conversations we have had with Congressional top aides, we agree that there will be a health care reform bill this year. How health care reform is financed is a key part of the equation and we are asking for your help to contact your Senators and Representatives with your input.

2010 HSA Maximums Released in Revenue Procedure 2009-29

Discovery Benefits — Thu, 14 May 2009 19:46:24 GMT

The IRS released Revenue Procedure 2009-29 announcing the inflation adjusted amounts for 2010 HSAs.

IRS Updates Web Site - Health Care Tax Credit and American Recovery and Reinvestment Act

Discovery Benefits — Wed, 29 Apr 2009 15:52:02 GMT

The IRS updated its Health Care Tax Credit (HCTC) web site (http://www.irs.gov/individuals/article/0,,id=109960,00.html) with information about the interaction of HCTC and The American Recovery and Reinvestment Act (ARRA). ARRA temporarily changed benefits provided under HCTC. The changes to HCTC (including the new timeframes for extended COBRA benefits) will expire on December 31, 2010. They are only valid for the remainder of 2009 and 2010.

Update - Caremark and IIAS

Discovery Benefits — Fri, 03 Apr 2009 13:25:30 GMT

Caremark asked us to make our clients aware of a scenario in which IIAS will not apply. Caremark allows certain participants to purchase items and pay later. Essentially Caremark fulfills and ships their prescription but bills the participant at a later date. Due to the fact that these purchases are not paid for in real-time, Caremark does not feel that IIAS can apply in these cases. In order to manage these, Caremark has coded their systems to not accept benefit-related debit cards for these purchase types. Instead participants will be asked to present another form of payment. Therefore if a participant purchases a prescription and pays for it after they receive it, they will not be able to use their benefits debit card.

IRS Releases Definition of "Involuntary" Termination - ARRA Subsidy

Discovery Benefits — Fri, 03 Apr 2009 12:57:04 GMT

The IRS released Notice 2009-27 that provides definitions of involuntary termination for purposes of determining who is an assistance eligible individual (AEI) and therefore eligible for the ARRA subsidy.

DOL Releases ARRA Model Notices 3-19-09

Discovery Benefits — Thu, 19 Mar 2009 12:58:14 GMT

Information from http://www.dol.gov/ebsa/COBRAmodelnotice.html: ARRA mandates that plans notify certain current and former participants and beneficiaries about the premium reduction. The Department created model notices to help plans and individuals comply with these requirements. Each model notice is designed for a particular group of qualified beneficiaries and contains information to help satisfy ARRA's notice provisions.

IRS Posts Q&A on How to Claim COBRA Subsidy Tax Credit (ARRA)

Discovery Benefits — Fri, 13 Mar 2009 16:01:48 GMT

The IRS has posted on its website 14 new Q&As to help employers claim the payroll tax credit for COBRA premium assistance payments made pursuant to the American Recovery and Reinvestment Act of 2009 (ARRA). The employer may recover the subsidy provided to assistance-eligible individuals (AEIs) by taking the subsidy amount as a credit on its quarterly employment tax return. The employer may provide the subsidy and take the credit on its employment tax return only after it has received the 35 percent premium payment from the individual. The IRS web site address for this information is: www.irs.gov/newsroom/article/0,,id=204708,00.html.

Medicare Secondary Payer Mandatory Reporting Requirements for Health Reimbursement Arrangements DELAYED

Discovery Benefits — Fri, 13 Mar 2009 15:40:33 GMT

CMS announced last week (March 5, 2009) that it has delayed the reporting of HRA coverage information until the fourth quarter of 2010 (October - December 2010). CMS granted this extension to give Responsible Reporting Entities (RREs) time to gather the necessary information to report on HRA coverage. CMS has said it will provide further instructions on reporting HRA coverage at a later date.

IRS Releases Information to Help Employers Claim COBRA Medical Coverage Credit on Payroll Tax Form

Discovery Benefits — Thu, 26 Feb 2009 16:44:10 GMT

The following information can be found at the IRS web site: http://www.irs.gov/newsroom/ IRS Form 941 and 941 instructions can be found on Discovery's web site under COBRA Printable Forms. COBRA: Answers for Employers Under the American Recovery and Reinvestment Act of 2009, certain individuals who are eligible for COBRA continuation health coverage, or similar coverage under State law, may receive a subsidy for 65 percent of the premium. These individuals are required to pay only 35 percent of the premium. The employer may recover the subsidy provided to assistance-eligible individuals by taking the subsidy amount as a credit on its quarterly employment tax return. The employer may provide the subsidy and take the credit on its employment tax return only after it has received the 35 percent premium payment from the individual.