June 2014

Happy June from HR Simplified! With the 4th of July quickly approaching we are busy working to provide both you and your particpants the great service you've come to expect from your entire team. As such, we have some exciting COBRA and FLEX developments to share with you. We think you'll be as excited to hear about them as we are to make the announcements!

Have you Implemented, or are you thinking about Implementing, the $500 Carryover?

Recently additional guidance has been released regarding this new provision that provides additional clarity and answers to a number of outstanding questions regarding the interaction of the carryover's impact on HSA eligibility. If you have already implemented the carryover provision this new guidance provides much needed information for possible plan changes to be considered. Should you be taking a "wait and see" approach before making a final decision this additional information goes a long way to helping you understand the impact the carryover can/will have on your plan and participants.

We have put together a brief Q&A of the new guidance - with examples where necessary. If you are interested in receiving this information, please contact your Account Executive and they will be happy to forward it along for your review and to address any additional questions.

Debit Cards Will Now Deactivate on the Last Day of Pre-Tax Eligibility

Currently debit cards are immediately deactivated upon HR Simplified receiving notification of a termination even if coverage extends beyond the date we receive the termination information. This often leads to the card being deactivated one day and the account termination being effective another. As your partner, we understand this is potentially a confusing message to deliver to the impacted participant.

A process has been implemented so that the debit card deactivation will occur on the same day as the account termination. This will hold true for groups that have a date of event termination policy as well as those that continue the account through the end of the month. This will allow you to provide a clear message to participants regarding their account closeout, debit card use, and eligible expenses as part of your termination process.

All transactions will follow the receipt notification/auto-substantiation procedures through the end of the participant's eligibility despite the impending status change. The Plan will remain compliant as documentation will be requested and if necessary repayment of ineligible claims.

Additional COBRA Reports Are Now Available

In our continuing effort to increase the level of service we provide, two additional reports have been added to the monthly information posted to the COBRA website. These new reports are live and available for your review!

The first report provides an extract of participants in a notified, enrolled, and recently termed status. You can then use this report and manipulate the data to fit your needs. The second report is an Excel version of the Payment Detail Report(s). This new report will combine the premium received into a single report regardless of the payment method.

Mike Melnychuk
CEO & President HR Simplified, Inc.

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