ShareThisCustomizable Components
The following options are available for you to customize the LGC's Flexible Spending Account (FSA) offerings and create tax-saving plans tailored for your employees.
Debit Card Feature
Participating employees can easily manage their FSAs with a designated debit card for exclusively purchasing eligible medical products or services up to the amount specified in their FSA plan. This provides employees with convenient access to their FSA funds while eliminating the need to complete and submit reimbursement forms. If you choose to provide your employees with this option, they will receive a Benny™ Prepaid Visa® Card Brochure, Debit Card Frequently Asked Questions and Important Information About Receipts to help them learn more about the debit card feature.
For plans that allow the purchase of over-the-counter items, the debit card works at retail establishments that have implemented an Inventory Information Approval System (IIAS). Check the IIAS Participating Merchant List regularly to view and download the most current listing of certified IIAS merchants. The debit card is also accepted at pharmacies or drugstores which have either implemented IIAS or registered with the IRS the fact that 90% of their gross revenues from the previous year are from healthcare items. Please check the 90% Merchants Rule List for those pharmacies that are registered with the IRS. NOTE: The Benny Prepaid Benefits Card is only accepted at pharmacies and drugstores appearing on either the IIAS Participating Merchant List or the 90% Merchants Rule List.
Over-the-Counter Medications
At your group's election, employees who participate in a healthcare FSA can be reimbursed for certain over-the-counter (OTC) medications like allergy medicines, cough syrups and eye drops with their designated pre-tax dollars. The LGC can provide you with a List of Eligible/Ineligible Expenses to share with participating employees that identifies both allowable OTC medications and items not considered eligible for reimbursement.
Extended Reimbursement Deadline
In the past, the Internal Revenue Service's "use-or-lose" rule required employees to use all of their designated FSA funds during a plan year or forfeit remaining balances. Now, however, employers may opt to offer an extended reimbursement deadline allowing participants in either the Dependent Care or Healthcare FSA to carry forward balances for up to two-and-a-half months and receive reimbursement for qualified expenses incurred during those extended months. This feature can take the pressure off your employees to spend FSA monies before a plan year ends. Consider this add-on feature when offering the LGC's Dependent Care Reimbursement or Healthcare FSA at your workplace.