Frequently Asked Questions
Below are answers to some common questions regarding this new legislation. If you have a question that isn't listed below, please contact us at [email protected] or call us at 503-946-3298.
Will I still be able to use my Benefits Mastercard™ to get reimbursed for my regular prescription medications?
Yes, prescription drug reimbursements will not be affected by this change, and you will still be able to purchase prescriptions with your Benefits Mastercard.
When does this change go into effect?
This change will go into effect January 1, 2011 and will apply to the taxable year, as opposed to the Cafeteria Plan Year. Therefore, all plans and participants will experience the change at the same time.
My Cafeteria Plan Year runs from June 1, 2010 to May 31, 2011. Can I get reimbursed for OTC items through the end of my Plan Year?
No. Eligibility for OTC items ends on December 31, 2010 regardless of plan end date. However, you may still use remaining funds for all other eligible expenses until the end of the plan year.
If I do get a doctor's prescription for an OTC medication, can I still use my Benefits Mastercard™ to get reimbursed?
No. The Benefits Mastercard™ cannot be used to pay for any OTC items after December 31, 2010. However, you may use another form of payment and submit a claim form with the doctor's prescription to our Claims Department for reimbursement. You can use our toll-free fax line (888) 539-9565 or email [email protected].
I am diabetic. Do I need a doctor's prescription to get reimbursed for my insulin beginning January 1, 2011?
No. Insulin currently purchased OTC without a prescription will still be eligible for reimbursement.
What if I purchase an OTC item in November of 2010 but do not submit the expense until February 2011?
You will still be reimbursed for OTC items purchased prior to January 1, 2011. The new rule does not affect reimbursement of any purchases made prior to that time.
What are some of the OTC items that will not longer be eligible for reimbursement without a doctor's prescription under the new legislation?
The items no longer available for reimbursement under the new law will include item categories such as cough medicines, pain relievers, acid controllers, allergy & sinus medications, sleep aids, etc.
This legislation will not affect other reimbursement benefits such as expenses related to doctor's office co-pays, dental co-pays, orthodontia, vision exams, eye glasses and more. Participants will continue to enjoy the convenience of eliminating up-front, out-of-pocket costs on many other items covered under their plans.
Is there a change to the FSA dollar limit for 2011? What will the limit be for next year?
No - for medical expenses, an employer and the Cafeteria Plan Administrator set a limit that can be contributed to the Cafeteria Plan, but there are no set limits as defined by the IRS. However, the Dependent Care Account limit is $5,000 per family, per year.
On the horizon, we will see a cap in maximum annual medical expense flexible spending account contributions. Effective January 1, 2013, a participant will only be able to tax-exempt up to $2,500 for the Cafeteria Plan.
Yes, prescription drug reimbursements will not be affected by this change, and you will still be able to purchase prescriptions with your Benefits Mastercard.
When does this change go into effect?
This change will go into effect January 1, 2011 and will apply to the taxable year, as opposed to the Cafeteria Plan Year. Therefore, all plans and participants will experience the change at the same time.
My Cafeteria Plan Year runs from June 1, 2010 to May 31, 2011. Can I get reimbursed for OTC items through the end of my Plan Year?
No. Eligibility for OTC items ends on December 31, 2010 regardless of plan end date. However, you may still use remaining funds for all other eligible expenses until the end of the plan year.
If I do get a doctor's prescription for an OTC medication, can I still use my Benefits Mastercard™ to get reimbursed?
No. The Benefits Mastercard™ cannot be used to pay for any OTC items after December 31, 2010. However, you may use another form of payment and submit a claim form with the doctor's prescription to our Claims Department for reimbursement. You can use our toll-free fax line (888) 539-9565 or email [email protected].
I am diabetic. Do I need a doctor's prescription to get reimbursed for my insulin beginning January 1, 2011?
No. Insulin currently purchased OTC without a prescription will still be eligible for reimbursement.
What if I purchase an OTC item in November of 2010 but do not submit the expense until February 2011?
You will still be reimbursed for OTC items purchased prior to January 1, 2011. The new rule does not affect reimbursement of any purchases made prior to that time.
What are some of the OTC items that will not longer be eligible for reimbursement without a doctor's prescription under the new legislation?
The items no longer available for reimbursement under the new law will include item categories such as cough medicines, pain relievers, acid controllers, allergy & sinus medications, sleep aids, etc.
This legislation will not affect other reimbursement benefits such as expenses related to doctor's office co-pays, dental co-pays, orthodontia, vision exams, eye glasses and more. Participants will continue to enjoy the convenience of eliminating up-front, out-of-pocket costs on many other items covered under their plans.
Is there a change to the FSA dollar limit for 2011? What will the limit be for next year?
No - for medical expenses, an employer and the Cafeteria Plan Administrator set a limit that can be contributed to the Cafeteria Plan, but there are no set limits as defined by the IRS. However, the Dependent Care Account limit is $5,000 per family, per year.
On the horizon, we will see a cap in maximum annual medical expense flexible spending account contributions. Effective January 1, 2013, a participant will only be able to tax-exempt up to $2,500 for the Cafeteria Plan.