IRS Announces
Increased 2013 HSA Index Figures
On April 27, 2012, the IRS released the new
HSA index figures for 2013. The 2013 health savings account index figures
are as follows: minimum deductible amounts for the qualifying
high-deductible health plan for individual coverage will increase to $1,250, as does the family coverage rate to $2,500. The 2013 maximum
contribution levels for individual coverage are $3,250 and family coverage
grew to $6,450. The maximum contribution levels for catch-up contributions for
those 55 and over remained at $1,000. The final change was for maximums
for high-deductible health plan out-of-pocket expenses for both individual
and family coverage. Individual coverage maximums for HDHP out-of-pocket
expenses are now $6,250 whereas family coverage is now $12,500.
FSAStore.com
Advantage Administrators is pleased to announce our new partnership with FSAStore.com. You can now use your Flex Debit card to purchase, pre-qualified, FSA items online. For more information on this new service, click here.
2012 Medical
Mileage Rate
Effective on January 1, 2012 in recognition of fluctuating gas prices, the
standard mileage rate for the use of a car (including vans, pickups, or panel
trucks) has decreased by half of a cent. The new mileage rate for 2012 is now 23
cents per mile for medical purposes. Please NOTE: Mileage that is used with a
personal automobile to obtain medical care may be an eligible deductible medical
expense for a flexible spending account or health reimbursement arrangement if
it's used primarily for and is essential to medical care.
New Guidance on Reimbursing Over-the-Counter (OTC) Drugs
According to the most recent guidance issued by the IRS in 2011, OTC drugs can be reimbursed only if one of the following is produced as part of the substantiation:
- A receipt identifying the purchaser (or patient), the date and amount of purchase, and an Rx number.
- A copy of the prescription, which includes the dosage (amount and interval), duration and patients name. The prescription must comply with state law requirements to be a valid prescription. In most states, this would include at a minimum the physician's name and license number and normally must be on a prescription pad.
More information will be coming with your 2012 enrollment packets.
Is your Pharmacy certified to use your Flex Benefit Card? Check here .
When
is a child not a dependent? Click here for an excellent article explaining how a child
qualifies as a dependent. |
Advantage
Administrators, formerly known as R.D. Drenkow & Co., Inc., was founded in
1987 by ERISA attorney Rodney D. Drenkow as an independent employee benefit
consultant and administrator. Our experienced staff can help you establish a
benefit plan that will satisfy the needs of your employees. As an independent
third party administrator, we provide all the services necessary for
tax-favored employee benefit programs, such as: Trust Accounting, IRS
Reporting, Consulting, Documentation and Compliance Testing.
