PEAK1: FLEX CONNECT

Peak1: FlexConnect, the flexible spending account claims administrator now offers Medical and/or Dependent Care Reimbursement Account inquiry through its website Peak1 Benefits Portal. This feature allows you to view a history of your processed claims; payments made on claims submitted; and your account balances for the current plan year and prior plan year during the grace period.

BENNY CARD USAGE Q & A

Q: What can I use my Benny Card for?
A: You can use your Benny Card to pay for prescribed over-the-counter items, co-pays, deductibles and prescriptions. A listing of Eligible and Ineligible items is available on our website: www.insurancecoordinators.com – click on colored box located two-thirds down the page labeled “Forms”, scroll down under Qualifying Expenses and select FSA-HRA Eligible/Ineligible Expenses.

Q: My new Plan year just began, can I still use my Benny Card to pay for last year’s expenses?
A: No – your Benny Card can only be used for current plan year expenses. If your plan has the grace period you may submit manual or electronic claims to use your remaining balance from the prior Plan year.

Q: Why am I receiving request for documentation when I use my Benny card?
A: The Benny card provides the convenience of not having to pay upfront for out of pocket medical expenses and then submitting a claim for reimbursement. It does not eliminate the need for you to save your receipts and if requested to send documentation in for verification. The Health Care Reform Act went into effect on January 1, 2011 changing eligible items through a flexible benefit plan; therefore increasing the verification requests.

Q: What happens if I use my Benny Card to pay for an expense and then my insurance company reimburses part or all of the expense?
A: Maintaining receipts and documentation for tax purposes is your responsibility. If you have other expenses that you have not previously submitted to your flex plan you can use them to offset the overpayment. You must submit back to Insurance Coordinators the overpayment if you do not have any other expenses or receipts.

GUIDELINES FOR THE USE OF FSA FUNDS TO PURCHASE
OVER THE COUNTER PRODUCTS AFTER 1/1/11

The recently enacted Patient Protection and Affordable Care Act of 2010 has changed the rules for the purchase of over the counter (OTC) products using your Flexible Spending Account (FSA).

The IRS currently allows OTC medicine and drugs to be reimbursed using your FSA dollars.  However, as of January 1, 2011:

1. FSA funds can no longer be used to purchase OTC medicine and drugs unless a medicine or drug is prescribed.  A “prescription” means a written or electronic order for a medicine or drug that meets the legal requirements of a prescription in the state in which the medical expense is incurred and that is issued by an individual who is legally authorized to issue a prescription in that state.

 The OTC items affected include items in the following categories:

• Acid controllers
• Baby rash ointments/creams
• Laxatives
• Allergy & Sinus
• Cold sore remedies
• Motion sickness
• Antibiotic products
• Cough, cold & flu
• Pain relief
• Anti-diarrheals
• Digestive aids
• Respiratory treatments
• Anti-gas
• Feminine anti-fungal/itch
• Sleep aids & sedatives
• Anti-itch & insect bite
• Hemorrhoidal preps
• Stomach remedies
• Antiparasitic treatment

2. If you have a prescription for an OTC medicine or drug, you must pay out of pocket at point of sale and then submit a manual claim requesting reimbursement.  You cannot use your Benny™ Prepaid Benefits Card for this purchase. (NOTE: Some retail merchants may remove OTC drugs and medicines from their list of eligible items prior to the January 1 effective date, in which case these items will not be approved on the prepaid benefits card at those merchants.)

3.You can continue to use your FSA funds to purchase OTC items that are not considered a medicine or drug (e.g. bandages, splints, contact lens solution, etc.)  Please note that insulin remains an eligible expense with or without a prescription.  So, your Benny Prepaid Benefits Card can continue to be used for these purchases.