Question:
An employee has a child who has reached age 13 and is unable to care for himself. What steps does the employee need to take in order for the child to remain eligible under a Dependent Care Reimbursement Account?
Answer
Children 12 years of age and under who reside in the participant’s household are eligible dependents under a dependent care account, as well as adults or children who are mentally or physically incapable of self care who spend at least eight hours a day in the household. To continue the child’s eligibility, the participant must provide documentation, such as a letter from a doctor, describing the reason for the child’s need for care. This information should be submitted with the claim form. Fringe Benefits Management Company (FBMC) will maintain the information for future claims during the plan year. This information will need to be submitted each plan year the employee enrolls in a dependent care account.
Answer:
Yes, the cost for these items can be reimbursed
Question:
Are expenses at retail-based clinics such as Walmart’s RediClinic eligible to be reimbursed under a Medical FRA?
Answer:
Yes, these expenses may be reimbursed to the extent that any non-physician making a determination of medical need, conducting screenings and recommending a course of legal treatment is professionally qualified to do so. A description of the types of medical services and screenings provided at a RediClinic can be found at www.walmart.com/catalog/catalog.gsp?cat=554492.
Question:
Are taxes on items allowable flexible reimbursement expenses?
Answer:
Yes, any taxes paid on qualified medical care services and products are eligible for reimbursement. This includes local, sales, service, and other taxes.
Question:
What happens if someone has a receipt for an over the counter item from a small merchant that doesn’t itemize on their receipts? Should I send a copy of the Bar Code or label from the item?
Answer:
In order for an over-the-counter expense to be reimbursable, the submitted receipt must clearly state the purchase date, purchase price, AND the name of the drug, item or medicine. A bar code or label would not be sufficient.
Question:
How do I apply for an EZ REIMBURSE MasterCard?
Answer:
The EZ REIMBURSE MasterCard is a simple way to receive quick and convenient reimbursement for your Medical FRA expenses. Applying is easy. Once you enroll in a Medical FRA due to a qualifying event, just complete and mail the EZ Reimburse MasterCard brochure within 60 days of your enrollment date. The deadline to request an EZ Reimburse MasterCard for your Open Enrollment election was June 1. For more information, see Frequently Asked Questions on the FBMC Web site.
Question:
If an eligible expense is higher than the available balance on the EZ REIMBURSE MasterCard, will the card reimburse up to the maximum available or will it reject the entire transaction (resulting in the need to file a paper claim)?
Answer:
The card transaction will be declined and the employee will have to file a paper claim for reimbursement
Question:
When FBMC provides a receipt transmittal cover sheet with the monthly statement mailed to the employee, will the transmittal form be "pre-filled" with the pertinent details?
Answer:
No. Participants can print the EZ reimburse card transmittal cover sheet from the FBMC Web site or call the FBMC Customer Service Department for a copy. The participant has to complete the form.
Question:
Does the application for the EZ Reimburse card get reported to the credit bureaus and show up on your credit record as a credit card?
Answer:
No.
Question:
The EZ REIMBURSE card brochure says that if you fail to submit documentation for certain expenses it will be reported as income on your W-2. Currently, you lose what you don't spend but it is not reported as income. If it is reported on a W-2 as income, will you get the money back that you didn't spend, or is it reported as income that you never receive?
Answer:
No. The money that you don’t spend in your Medical FRA is forfeited. As for the money spent via the EZ REIMBURSE card that requires substantiation, if the employee doesn’t provide that documentation, the funds are reclassified as taxable income.
Question:
Can the EZ REIMBURSE card be used to pay for mail order prescription drugs?
Answer:
The card can be used to pay for mail order prescriptions like any other "credit card" type payment method. The employee would send the EZ REIMBURSE card number on the payment remit sheet and as long as the expense does not exceed the available balance on the card, the transaction should process.
Question:
What is an individual's potential liability if the EZ REIMBURSE card is lost or stolen?
Answer:
The Card Holder Agreement participants receive with their cards explains the liability an employee faces when a card is lost or stolen. Employees will need to remember this card only works at medical healthcare and drug store facilities. If a thief tries to use it, for example, at a gas station, it will not work. The thief would have to be savvy enough to know what kind of card it was to use it and then as long as it is reported in a timely manner, there is no liability on the employee’s part.
Question:
How will the EZ REIMBURSE card work when an employee purchases a prescription that costs an amount other than a known copayment? For example, my medication costs $14.39, which is less than my co-payment under the COVA Care plan.
Answer:
The transaction would go through, but FBMC would require documentation to substantiate the amount.
Question:
How do you know what items require documentation? What are some examples?
Answer:
DHRM will be providing FBMC with the copayments for the COVA Care and Kaiser plans and will be passing healthcare enrollment along with the FRA election information this year. If the card is used by a healthcare provider, say a doctor or hospital, and the copayment "matches" one on the file, the expense will be processed and no additional information will be requested.
If the expense is different from any of the copayments, the card will process for the healthcare provider, but FBMC will request supporting documentation from the employee. The employee would need to send in the same type of documentation that they would send for a paper claim submission, such as an EOB.
Question:
When you use your card, will it be denied for ineligible purchases or will the purchase go through?
Answer:
The card may be used at a non-healthcare provider, such as a drug store or discount store,but certain restrictions may apply. These providers are in the process of converting to a new system, IIAS, which will identify all "FRA eligible expenses" and allow card acceptance for the expenses and no follow-up paperwork is required. If the store does not have IIAS, the card may accept the transaction but the employee will need to file supporting documentation for the expense.
Question:
Can employees get more than two EZ REIMBURSE cards?
Answer:
No, unless as a replacement for a lost or stolen card.
Question:
If an employee has an EZ Reimburse Card, and there is money in the account at the end of the plan year, can the employee use the card during the "run-out" period (through September 30) and also be eligible to use the card starting July 1 of the new plan year?
Answer:
Participants cannot access previous year funds from the card and must submit a paper claim during the run-out period to deplete the previous year’s account.
New cards will not be issued every plan year. The appropriate funds are loaded onto the card for the new plan year. Here’s an example: