Posts Categorized: Cafeteria Plans

Revised Red Flags Rule

in Cafeteria Plans, Welfare Benefits

This week President Obama signed revised red flags rule legislation designed to exempt professionals and “other service providers” from the FTC Red Flags Rule.  It is unclear if this new legislation will change its application to health FSAs and HRAs that utilize debit cards.  The FTC website indicates that it is updating its guidance and will update the website when that process is complete.  In the interim, you can review the application of the Red Flags Rule for employee benefits, by reviewing our Legal Alert:  http://bit.ly/i5YOSm

OTC Guidance Released

in Affordable Care Act, Cafeteria Plans

The Affordable Care Act provides that the cost of an over-the-counter medicine or drug cannot be reimbursed from a health FSA or HRA unless a prescription is obtained. This new rule applies only to purchases made on or after January 1, 2011. Moments ago, the IRS released Notice 2010-59, which provides guidance regarding how this new rule will operate. A link to the guidance is appended below, and we will have additional details regarding the guidance next week. http://www.irs.gov/pub/irs-drop/n-10-59.pdf