10-10-2022 Council Packet - Laserfiche WebLink

Home Browse Search

© 2019 Hitesman & Wold, P.A. MEDSURETY, LLC Cafeteria Plan 1-888-816-4234, www.medsurety.com Basic Plan Document 21 (v) For eligible expenses, the electronic payment card is used at a merchant (of any kind) that participates in an inventory information approval system developed by the card provider that verifies, at the time of purchase, that the goods being purchased constitute medical care. (7) Special rules may apply to the use of the electronic payment card to purchase over-the-counter drugs and medicines other than insulin. Notwithstanding the rules described above regarding the use of the card to purchase medical care, unless and until the IRS issues guidance providing the following procedures need not be followed (in which case such guidance shall be incorporated herein by reference), the card may be used to purchase such over-the-counter drugs and medicines only in the following circumstances: (i) At any 90% pharmacy if the expense is substantiated after the purchase in accordance with paragraph (6)(i) above. (ii) At drug stores, pharmacies, non-health care merchants that have pharmacies, and mail order or web-based merchants that sell prescription drugs if (a) the cardholder presents the prescription to the pharmacist; (b) the pharmacist assigns a prescription number and dispenses the over-the-counter drug or medicine in accordance with applicable law; (c) the pharmacy retains a record of the transa ction, including the name on prescription, prescription number, date, and the amount of the purchase; (d) the pharmacy’s records are accessible by the employer or its agent; (e) the debit card system does not allow over - the-counter drugs or medicines without a prescription number; and (f) the expense is substantiated in accordance with the standard rules described above in paragraph (6). (iii) At merchants having healthcare related merchant codes (other than merchants described in item ii above) if the expe nse is substantiated in accordance with the standard rules described above in paragraph (6). Note: If the over-the-counter medicine cannot be purchased with the electronic payment card, it may still be reimbursed using the manual reimbursement procedures described in paragraph (a) above. (8) If a claim is not substantiated pursuant to items (ii) through (v) of paragraph (6) above, and the Participant does not substantiate the claim pursuant to paragraph (6)(i) above within a particular time period (as established by the Plan Administrator or is designee), the Participant’s use of the card will be terminated at least until such time as the claim is substantiated or the unsubstantiated claim is recovered by the Plan. Furthermore, the Plan shall seek to recover any unsubstantiated electronic payment card claim by demanding repayment from the Participant, withholding an amount equal to the unsubstantiated expense from the Participant’s compensation (if and as allowed by applicable law), and/or offsetting such amount against future eligible claims under the Plan. If such amounts cannot be recovered, the Participant shall be indebted to the Employer and the Employer shall treat the debt as any other business indebtedness. (9) The use of an electronic payment card does not constitute a “claim” under the claims procedures. (10) For purposes of the Grace Period that overlaps with the first portion of the next Plan Year, claims incurred during the Grace Periods must be submitted as paper