Mini-Med Waivers and OTC Reimbursements Explained

in Affordable Care Act

As noted previously, IRS announced the OTC reimbursement guidance for health FSAs and HRAs, and HHS announced the mini-med waiver program. Unfortunately, there is not much substance in the guidance, leaving many plan sponsors with numerous questions as they approach annual enrollment. We have posted our Legal Alert on these releases at the link below.

Reimbursing OTC Drugs and Applying for Mini-Med Waivers

Mini-Med Waiver Program Announced

in Affordable Care Act

Late on Friday, September 3rd, OCIIO posted the annual waiver process for mini-med plans. Interested plan sponsors must send their applications to OCIIO and they will be processed in 30 days. If approved, the waiver will only apply for the next plan year, meaning that annual re-applications will be necessary. The guidance can be found at the following link:

http://www.hhs.gov/ociio/regulations/patient/ociio_2010-1_20100903_508.pdf

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.

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ERRP Approvals Released Today

in Affordable Care Act

Today, the HHS Office of Consumer Information and Insurance Oversight stated that it has approved nearly 2,000 plans representing a broad range of employers from all 50 States and the District of Columbia into the Early Retiree Reinsurance Program in this first round of approvals with more applications being reviewed every day.  Starting in September, approved applicants can begin submitting claims dating back to June 1, 2010 and, starting in October, approved applicants will begin to...Continue Reading

Mini-Med Update

in Affordable Care Act

Our August 23rd post discussed the status of the mini-med waiver program.  This program will allow mini-med sponsors to apply for a waiver from the annual and lifetime limit requirements prior to January 1, 2014.  We understand that the issuance of the waiver program requirements is imminent and the guidance may come as early as this week.  We will let you know as soon as it is released.