by admin | Sep 20, 2022 | Blog
A Health Care Flexible Spending Account (FSA) is a popular option for nearly everyone. This account allows you to set aside pre-tax dollars for eligible expenses, which means you don’t have to tap into your checking account when you have medical, dental, and vision expenses for you or your dependents
The following is a brief list of expenses Health Care FSA funds do and do not cover.
What qualifies
- Feminine hygiene products
- Copays, deductible payments, and coinsurance
- Doctor office visits and exams
- Hospital charges
- Prescription drugs
- Dental exams, x-rays, and orthodontia
- Physical therapy
- Over-the-counter medications and first aid kits
- Vision exams, contacts, and glasses
What doesn’t qualify
- Expenses incurred in a prior plan year
- Cosmetic procedures or surgery
- Dental products for general health
- General hygiene products
- Insurance premiums
by admin | Sep 19, 2022 | Blog
NueSynergy offers a smart debit card to provide account holders with a convenient method to pay for qualified out-of-pocket expenses for themselves, their spouse, and/or any dependents. Here are some frequently asked questions about the smart debit card.
Question #1: Where is the smart debit card accepted?
The NueSynergy smart debit card is accepted at any qualified merchant (as determined by the employer’s plan document). In addition, the card can pay for office visit copays, deductible-related expenses, prescriptions, eyeglasses, and dental work – including orthodontia.
Question #2: What are the advantages of using the NueSynergy smart debit card?
Any participant who uses the card at a qualified merchant can pay for their eligible expenses. This means they don’t have to submit a manual claim and wait for their reimbursement. Another advantage of using this card is that participants can view real-time account information, balances, deposits, and payments by logging onto our website or the NueSynergy mobile app.
Question #3: How does NueSynergy verify the smart debit card is used only for qualified expenses?
As long as there’s a sufficient balance in a participant’s account, any qualified purchase will be paid directly from a reimbursement account once the card is swiped. The IRS requires participants to keep all receipts for benefit account expenses for seven years in the event of a tax audit. If there is an error or unusual transaction amount, NueSynergy is required by the IRS to verify the transaction. If a transaction cannot be electronically substantiated, a participant will be sent a notification via email to submit a detailed receipt from the place of purchase. The detailed receipt should show the date of service, description (or type) of treatment along with the amount owed.
Question #4: How do participants send required documentation for substantiation of NueSynergy smart debit card transactions?
Participants can submit documentation via the NueSynergy mobile app, NueSynergy member portal, or by email at CustomerService@NueSynergy.com.
by admin | Sep 14, 2022 | Blog
Health Savings Account (HSA) participants can use their HSA funds to pay for qualified health care expenses such as deductibles and prescription drugs. What many don’t know is that HSA funds can also cover these commonly used products and services:
- Dental treatment
- Pregnancy test kits
- Orthodontia
- Hearing aids and batteries
- Ambulance services
- Contraceptives
- Insulin
- Prescription eyeglasses
- Nursing services
- Physical therapy
To learn even more about HSA-eligible items, check out our extensive list.
by admin | Aug 29, 2022 | Blog
You probably know that NueSynergy offers Health Savings Accounts (HSAs), Flexible Spending Accounts (FSAs), and Health Reimbursement Arrangements (HRAs). But did you know we also administer Lifestyle Spending Accounts (LSAs)?
An LSA is sponsored and funded by a participant’s employer and is designed to support health and wellness activities in their lives. Similar to HSAs, FSAs, and HRAs, the difference is an LSA provides funds specifically for health and wellness products and services, often determined by the employer.
LSAs are unique because employers can tailor them specifically for their employees. The employer contribution is taxable as income when spent, unlike HSAs, FSAs, and HRAs which removes many of the regulatory constraints associated with tax-advantaged accounts.
Lastly, NueSynergy LSAs allow employee participants and their dependents to use annual employer contribution amounts for any eligible items that promote health and wellness. Typical expenses include health club and spa memberships, fitness classes, athletic apparel and equipment, student loan reimbursement, tuition reimbursement, and nutritional counseling and supplements.
Setting up an LSA is simple. Once a NueSynergy LSA is chosen, there are three decisions an employer should make:
- How much does the employer choose to contribute annually?
- Which health and wellness products and services will be considered eligible expenses?
- How will the employer manage unused LSA contributions at the end of the plan year – either by retaining unused funds or rolling over to the next plan year?
For a full breakdown, including a list of typical eligible items, check here.
by admin | Aug 22, 2022 | Blog
Congress has passed, and the President has signed, the Inflation Reduction Act of 2022. While the legislation largely focuses on climate change mitigation and deficit reduction, several provisions are of interest to group health plan sponsors and their advisors. Here they are as followed:
Enhanced Premium Tax Credit: The favorable premium tax credit rules adopted in the American Rescue Plan Act (ARPA) will now remain in effect through 2025. As background, the Affordable Care Act (ACA) created a refundable premium tax credit, which is available on a sliding-scale basis for individuals and families who are enrolled in an Exchange health plan and who are not eligible for other qualifying coverage or affordable employer-sponsored health insurance plans providing minimum value.
The ACA limits the credit to taxpayers with household income between 100% and 400% of the federal poverty line who purchase insurance through an Exchange health plan. ARPA eliminated the upper income limit for eligibility and increased the amount of the premium tax credit by decreasing, in all income bands, the percentage of household income that individuals must contribute for Exchange coverage. The adjusted percentage ranges from zero to 8.5%.
Medicare Prescription Drug Cost Reductions: Several cost reduction measures will benefit enrollees in Medicare Part D prescription drug coverage. Beginning in 2023, cost-sharing for insulin will be capped at $35 per month. Annual Part D out-of-pocket prescription drug costs will be capped at $2,000 starting in 2025. For the first time, the United States Department of Health and Human Services (HHS) will be authorized and required to negotiate certain Medicare drug prices with manufacturers beginning in 2026. In addition, starting in 2023, manufacturers must pay Medicare a rebate if average prices of certain drugs increase faster than inflation.
Note: Because the legislation does not include comparable prescription drug cost reductions for private plans, there is some concern that reduced costs for Medicare enrollees will result in increased costs for employer plans and participants as price increases are shifted to private plans to make up for lost revenue.
Insulin-Related HDHP Safe Harbor: The legislation amends to provide that plans will not lose their HDHP status by reason of failing to have a deductible for certain insulin products. This provision is effective for plan years beginning after December 31, 2022.
Note: The provision codifies and expands IRS guidance that allows HDHPs to provide insulin on a no-deductible or low-deductible basis under specified circumstances without adversely affecting HSA eligibility.
Source: Thomson Reuters
by admin | Aug 22, 2022 | Blog
For new FSA members, there are two carryover fund options to take note of: Healthcare to Healthcare and Healthcare to Limited Purpose. Here they are followed:
Healthcare FSA to Healthcare FSA carryover
As of December 31, any funds up to $570 remaining in a Healthcare FSA will immediately carryover on the first day of the new plan year. This means that the carryover amount is simultaneously available to pay previous plan year expenses and current plan year expenses during the previous plan year run-out period.
Healthcare FSA to Limited Purpose FSA carryover
Remaining carryover funds in a Healthcare FSA as of December 31 can only be used for previous plan year dates of service until the end of the plan run-out period. Any dental or vision expenses incurred during the new plan year can be reimbursed either immediately from the new Limited Purpose FSA, or at the end of the run-out period when any remaining funds from the previous Healthcare FSA are carried over to the Limited Purpose FSA.
