Updates for Open Enrollment Materials

As you prepare for your 2007 open enrollment, you will want to consider the following updates:

Debit Cards
Debit cards provide a convenient way for your employees to use their FSA and HRA funds. If you offer debit cards, you will want to know that the IRS has now made the substantiation process easier.

Dependent Care FSAs
New guidance clarifies that a dependent care FSA may reimburse for  (1) specialty day camps providing instruction as well as child care (such as tennis and computer camps); (2) "incidental" charges for meals and supplies, so long as there is no separate charge for the snack, t-shirt, etc.; and (3) transportation costs charged by the provider to pick-up or drop off the child, but only if the dependent care provider actually provides the transportation.  The new guidance also explains how to reimburse for dependent care when the employee is on a leave. 

Annual Health Plan Notices
Many group health plan sponsors include the required annual notices in open enrollment packets. If you are doing so, remember annual notices are required for The Women's Health and Cancer Rights Act, Medicare Part D, and HIPAA special enrollment.

Go here to learn more about these updates.

If you would like additional information about these issues or assistance with your open enrollment materials, please contact your Ice Miller benefits attorney, or Christopher Sears, Stephanie Smithey, Linda Rowings or Greg Nichols.