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Wednesday, 15 November 2017 17:02

Remind Your Employees of “Use It or Lose It” Deadline

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The end of the year is quickly approaching which means several plans, such as Flexible Spending Accounts (FSA) and Health Reimbursement Arrangements (HRA), are ending for the 2017 year*. Depending on the details of those contracts (and whether they contain a rollover, carryover or grace period provision), employees have until 12/31/17 to use any remaining funds in their FSA or to submit claims for reimbursement under the HRA. 

Now is the time for employees to start thinking of ways to use those funds and make sure to both spend the money AND submit the claims by the appropriate deadline.
 
If they wait too long, they’ll kick themselves…which, ironically, could lead to a minor injury, requiring some bandages, which they’d no longer be able to buy with their FSA funds. :-)  As a reminder, FSA money can be used to buy things like eyeglasses, contact lenses, therapy, acupuncture, first aid kits, smoking cessation programs—and much more. A full list of eligible expenses can be found here.
 
If your company offers an HRA in which you reimburse employees for a portion of their out-of-pocket medical expenses for incurred claims, now might be a good time to send a reminder to employees to get their HRA claim forms submitted before the end of the year, or within your grace period, if any. 

This is a busy time of year, but your Fall River team is here and happy to help. Please reach out to your dedicated Client Manager with any questions. 

*Note: Not all FSA / HRA plans are calendar year, of course. Where possible, we recommend that the FSA and HRA plan years be aligned with your health insurance policy year AND deductible year, regardless of what month of the year your renewal is. This enables smooth transitions between HDHP and Copay plans with no unwelcome tax consequences for employees. 
Read 107 times Last modified on Thursday, 30 November 2017 13:43
Juliet Fitzgibbons

Juliet joins Fall River as an Account Executive and brings over 15 years of prior broker and account management experience. Her experience brings extensive knowledge on employee benefit programs, account management and creative cost-saving strategies and compliance solutions for employers of various sizes.

She is responsible for new business proposals, client renewals including plan benchmarking, rate analysis and mid-year reviews. She helps clients navigate healthcare systems and educates employers and employees through open enrollment meetings and day-to-day service requests. Juliet joined Fall River in 2015.