Topics Covered

For plan sponsors, service providers, and advisors, here’s some of what was covered:

• Restriction on OTC Drug Reimbursements. For taxable years beginning after December 31, 2010, health FSAs (and HRAs) can no longer reimburse over-the-counter (OTC) medicines or drugs (other than insulin) without a doctor’s prescription; similar restrictions will apply to HSAs and Archer MSAs. We’ll address the impact on administration and plan design, including planning for open enrollment.
• Health FSA Contribution Limit. For taxable years beginning after December 31, 2012, the new law imposes a $2,500 cap (indexed for inflation) on annual salary reduction contributions to health FSAs offered under cafeteria plans. We’ll address the new rule, suggestions for advance planning, and the overall impact on benefit plan design.
• Simple Cafeteria Plans. A new nondiscrimination safe harbor becomes available in 2011 for eligible small employers whose cafeteria plans meet minimum contribution and eligibility requirements. We’ll explain how the safe harbor works and what it requires, how to identify eligible employers (generally those with an average of 100 or fewer employees), and how to assess when a simple cafeteria plan makes sense.

Please Note: Legislative corrections and regulatory guidance are expected to start flowing soon! Our speakers will bring you the latest guidance and analysis as of the date of the seminar.