10-10-2022 Council Packet - Laserfiche WebLink

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© 2019 Hitesman & Wold, P.A. MEDSURETY, LLC Cafeteria Plan 1-888-816-4234, www.medsurety.com Basic Plan Document 22 claims (as discussed above) in order for the claim to be processed and paid from the Participant’s remaining account balance from the Plan Year just ended. If the electronic payment card is used for expenses incurred during the Grace Period, the benefit shall be paid from the Participant’s account balance for the new Plan Year, not the Plan Year to which the Grace Period relates. (c) Electronic Payment Cards – Dependent Care Flexible Spending Account. If provided in the Adoption Agreement, a Participant may receive reimbursement of an eligible expense under the Dependent Care Flexible Spending Account (if applicable) by use of an electronic payment card at the time the eligible expense is incurred. A Participant must elect to use the electronic payment card, and must agree to abide by the terms and conditions of the electronic payment card program as set forth in a separate agreement with the electronic payment card provider. If required, Participants must execute a new agreement prior to the start of each Plan Year. In addition to the terms and conditions of the electronic payment card program, the use of the electronic payment care shall be subject following conditions: (1) At the beginning of each Plan Year or, if later, upon the Participant’s Entry Date, the Participant must pay the initial eligible expense to the dependent care provider and submit a paper claim to the Plan for such expense. (2) Upon substantiation by the Claims Administrator of the initial eligible expense, the Plan will make available through the electronic payment card an amount equal to the lesser of: (i) the amount of the approved claim, or (ii) the contributions made by or on behalf of the Participant to the Dependent Care Expense Reimbursement Plan for the Pan Year to date. (3) The electronic payment card may then be used to pay for subsequently incurred eligible dependent care expenses. (4) The amount available through the electronic payment card may be increased only as additional dependent care expenses are incurred and substantiated via submission of a paper claim, except as provided in paragraph (5) below. In no case will the amount available through the electronic payment card exceed the contributions made by or on behalf of the Participant to the Dependent Care Expense Reimbursement Plan for the Plan Year to date minus the amount o f expenses previously reimbursed during such Plan Year (whether such reimbursement was made in cash or by crediting the electronic payment card). (5) Dependent care expenses may be automatically substantiated without submission of a paper claim only as provided in this paragraph (5). If (i) an electronic payment card transaction collects information that matches information for a previously approved paper claim with respect to the dependent care provider, and (ii) the amount of the electronic payment card tran saction is equal to or less than the previously approved paper claim, then the claim paid via the electronic payment card is substantiated without further revi ew. In such instances, the balance of the electronic payment card may be increased with respect to the automatically substantiated claim once the expense paid through the electronic payment card has been incurred. Example: If a Participant uses an electronic payment card to pay a day care provider on the first day of the week for the care to be pr ovided during that week, and the claim is automatically substantiated as provided above, the balance of the electronic payment card may be increased with respect to such claim at the end of the week.