Broker Check

Bringing Money Back: Legislative Updates & Product Changes

Ashley Sicilia

Employee Benefits Assistant


Spring is finally here! As always, Tycor wants to keep you informed of legislative updates and product changes.  In this article, we will review how Ameriflex has you covered when it comes to loss of employer FSA funds and identity theft. If you’re already an Ameriflex client, you have access to the Ameriflex Guarantee and ID theft services from MasterCard. The IRS has released a notice regarding employer HSA overpayments; in some scenarios, you may be able to recover lost funds. For mid-size groups (51+), Independence Blue Cross (IBC) will pay for a variety of wellness programs and activities via wellness credits. Wellness credits allow groups to tap into well-being programs and activities – at no added cost!

The Ameriflex Guarantee & ID Theft

Ameriflex is rethinking the way they cater to their clients. The spending account administrator offers what they call, “The Ameriflex Guarantee”. This benefit is designed to protect you, the employer, from financial loss in your flexible spending account (FSA) plan. For employee FSA accounts, an employer “front-loads” the funds and throughout the year deducts contributions from an employee’s pay. Because employees are permitted by law to access and use the entire elected amount of FSA contributions prior to actually contributing the elected amount, an employer could potentially lose out on money, should an employee terminate after spending more than what they had actually contributed. If you are an Ameriflex customer, the Ameriflex Guarantee allows you to recover those lost employer funds. An employer is automatically eligible to file a claim as long as they are an Ameriflex FSA client.

Here is another perk – If you are an Ameriflex cardholder, you automatically get access to ID theft protection from MasterCard. This program is powered by CSID and offers ID theft detection and resolution services at no additional cost to you the employer or the cardholder. To participate, Ameriflex members need to register their information with MasterCard. Not only does the program monitor the Ameriflex card for any fraudulent use, they can monitor personal bank accounts, personal identification card information, and health insurance IDs. It’s up to the member to disclose as much or as little information as they want. Let Tycor know if this is a service your employees could benefit from!

Get Made a Mistake? Get Your Employer HSA Money Back

Generally, an individual’s HSA funds are considered “non-forfeitable”.  There are, however, certain situations that allow employers to potentially recover funds contributed in error. In a notice released on December 28th, 2018 (Information Letter 2018-0033), the IRS lists types of errors that may be corrected. Here is a summary of the types of errors:

 

  • If the employer contributed an amount that exceeded the amount allowable by law
  • If an employee was never eligible for the contributions
  • If an employee was eligible at the beginning of the year but not eligible at the end of the year
  • If the employer contributed an amount higher than what the employee had elected to contribute
  • If an incorrect spreadsheet was accessed or if an employer confused an employee with another employee of similar name
  • If the employer or third party made a data-entry error
  • If duplicate payroll files were submitted, resulting in duplicate contributions
  • If an election amount change was not processed timely, resulting in an amount other than what the employee had elected
  • If an incorrect system calculation occurred
  • If a decimal position error occurred

If a recovery of funds is needed, the employer should request the recovery from their HSA trustee or administrator. The recovery must be made within the same year as contributed. If not, the amount contributed must be included on the employee’s Form W-2.

The above information is a general summary of the IRS notice. If you have identified an error, Tycor suggests you seek advice from your attorney or tax professional before any recovery action is taken.

Independence Blue Cross Wellness for Mid-Size Groups (51+)

Independence Blue Cross (IBC) offers plenty of online tools to help you implement an employer worksite well-being program. But what you may not know is, if you have a mid-size group (51-99 individuals enrolled), your group is automatically granted 5,000 wellness credits to use towards a plethora of different programs and activities that promote wellness and well-being. A few examples include: cooking classes and nutrition education, cancer prevention, massages, health fairs, risk reduction, health screenings and assessments, food and mood classes, stress management, diabetes education, yoga and fitness classes, and goal setting! It is safe to say there is something for everyone!

IBC will pay those vendors directly and deduct the expenses from your credits balance. You may always contact IBC regarding your credits, however, we highly encourage you to keep a record of your usage in the event you need to reconcile your balance. It’s also important to note, credits do not roll over, but groups are awarded 5,000 credits every year at renewal. To utilize this benefit, you will need a worksite champion – someone within your workplace to develop and implement the wellness program. Don’t let these credits go to waste!

Tycor will continue to update you on product and legislative changes. If you have questions on this article or other benefit related items, give us a call at (610) 251-0670. We are here to help!