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Announcing 2017 Limits for Flexible Spending Accounts, Adoption Assistance, Transit and Parking Benefits

The Internal Revenue Service (IRS) recently announced annual inflation adjustments for 2017. Revenue Procedure 2016-55 provides details about these annual adjustments. It includes the 2017 limits for Health Care Flexible Spending Accounts (FSAs), Limited Purpose FSAs, Adoption Assistance, Transit/Vanpool and Parking benefits. These limits are effective January 1, 2017.

Health Care FSAs & Limited Purpose FSAs

The 2017 pretax contribution limit for Health Care FSAs and Limited Purpose FSAs is $2,600. This is a $50 increase over the 2016 limit.

Adoption Assistance

If you adopt an eligible child, you may be eligible to receive up to $13,570 tax-free, from your employer. This is a $110 increase from the 2016 limit. This benefit can help you pay for qualified adoption expenses. But it begins to phase out if you have a Modified Adjusted Gross Income (MAGI) greater than $203,540. And it completely phases out if you have a MAGI of $243,540 or more.

Transit/Vanpool and Parking

There are no changes to the transit/vanpool and parking limits. The 2017 combined pretax contribution limit for transit/vanpool expenses is $255 per month. The pretax parking limit is $255 per month.

Note: Employers are not required to adopt these new limits. They can set lower limits for their plans.

Announcing 2017 Health Savings Account (HSA) & High Deductible Health Plan (HDHP) Limits

The HSA contribution limit for individual coverage will increase for the 2017 calendar year.The HSA contribution limit for family coverage, minimum annual deductibles and maximum out-of-pocket amounts will stay the same. Below are the 2017 Internal Revenue Service (IRS) limits.

2017 HSA contribution limits

Individual: $3,400 ($50 increase from 2016)
Family: $6,750

2017 minimum annual deductibles

Individual: $1,300
Family: $2,600

2017 HDHP maximum out-of-pocket amounts

Individual: $6,550
Family: $13,100.

Announcing 2016 Limits for FSAs, Adoption Assistance, Transit and Parking Benefits

The Internal Revenue Service (IRS) recently announced annual inflation adjustments for 2016. Revenue Procedure 2015-53 provides details about these annual adjustments. It includes the 2016 limits for Health Care Flexible Spending Accounts (FSAs), Limited Purpose FSAs, Adoption Assistance, Transit/Vanpool and Parking benefits. These limits are effective January 1, 2016.

Health Care FSAs and Limited Purpose FSAs

The pretax contribution limit for Health Care FSAs and Limited Purpose FSAs isn't changing. For 2016, the limit remains at $2,550.

Adoption Assistance

If you adopt an eligible child in 2016, you may be eligible to receive up to $13,460 tax-free, from your employer. This is a $60 increase from the 2015 limit. This benefit can help you pay for qualified adoption expenses. But it begins to phase out if you have a Modified Adjusted Gross Income (MAGI) greater than $201,920. And it completely phases out if you have a MAGI of $241,920 or more.

Transit/Vanpool and Parking(Updated December 18,2015)

Beginning January 1, 2016, the pretax transit/vanpool limit is $255 per month. The pretax parking limit also $255 per month. This is a $5 increase from 2015.

Note: Employers aren't required to adopt these new limits.Employers may set lower limits for their plans.

Announcing 2016 Health Savings Account (HSA) & High Deductible Health Plan (HDHP) Limits

May 1, 2015
The HSA contribution limit for family coverage and maximum out-of-pocket amounts for HDHPs will increase for the 2016 calendar year. The HSA contribution limit for individual coverage and minimum annual deductibles will stay the same. Below are the 2016 limits.

2016 HSA contribution limits

Individual: $3,350
Family: $6,750

2016 minimum annual deductible

Individual: $1,300
Family: $2,600

2016 HDHP maximum out-of-pocket amounts

Individual: $6,550
Family: $13,100.

View a comparison of the 2015 and 2016 limits, click here.

Announcing 2015 Limits for Flexible Spending Accounts, Adoption Assistance, Transit and Parking Benefits

November 24, 2014
The Internal Revenue Service (IRS) recently announced annual inflation adjustments for 2015.Revenue Procedure 2014-61 provides details about these annual adjustments. It includes the 2015 limits for Health Care Flexible Spending Accounts (FSAs), Limited Purpose FSAs, Adoption, Transit/Vanpool and Parking benefits. These limits are effective January 1, 2015.

Health Care FSAs & Limited Purpose FSAs

The 2015 pretax contribution limit for Health Care FSAs and Limited Purpose FSAs is $2,550. This is a $50 increase over the 2014 limit.

Note: Employers may set lower limits for their plans.

Adoption Assistance

If you adopt an eligible child, you may be eligible to receive up to $13,400 tax-free, in 2015 from your employer to help you pay for qualified adoption expenses. This is a $210 increase from the 2014 limit. This benefit begins to phase out with Modified Adjusted Gross Income (MAGI) greater than $201,010 and completely phases out for MAGI at $241,010 or more.

Transit/Vanpool and Parking

There are no changes to the transit/vanpool and parking limits. The 2015 combined pretax contribution limit for transit/vanpool expenses is $130 per month. The pretax parking limit is $250 per month.

Note: Employers are not required to adopt these new limits. They can set lower limits for their plans.

Mileage rate for eligible medical visits changed to $.23 per mile

December 2014
Effective January 1, 2015, the standard mileage rate (as set by the IRS) for the use of a car, van, pickup or panel truck for eligible medical visits will be $.23 per mile. The mileage rate for travel that occurred between January 1, 2014 and December 31, 2014 will remain at $.235 per mile. The cost of fares for buses, taxis, trains and subways will continue to be reimbursable for the full amount.

Announcing 2015 HSA & High Deductible Health Plan (HDHP) Limits

May 1, 2014
The limits for health savings account (HSA) contributions, minimum annual deductibles and maximum out-of-pocket amounts for high deductible health plans (HDHPs) will increase for the 2015 calendar year. Below are the 2015 limits.

2015 HSA contribution limits

Individual: $3,350
Family: $6,650

2015 minimum annual deductible

Individual: $1,300
Family: $2,600

2015 maximum out-of-pocket amounts

Individual: $6,450
Family: $12,900

View a comparison of the 2014 and 2015 limits, click here.

IRS guidance on health care Flexible Spending Account (FSA) carryover and improper health care debit card payments

April 22, 2014
The IRS recently released a memorandum (No. 201413005) with additional guidance on the carryover option for a general purpose FSA and limited purpose FSA and the impact on health savings account (HSA) eligibility. A second IRS memorandum (No. 201413006) provided guidance on correction procedures for improper health care debit card payments. Important points related to these issues are summarized below. Please know that our system is currently set up to support these processes.

FSA carryover and HSA eligibility (No. 201413005):

Employers that offer a general purpose FSA or limited purpose FSA without a grace period have the option of allowing employees to carry over up to $500 of unused funds to the next plan year.

Additional guidance:

  • A member can’t enroll in an HSA if they have coverage in a general purpose FSA at any time during the year. This is true even if the coverage is only due to carryover funds from the prior plan year.
  • If a member has a general purpose FSA, they can continue to submit claims from the prior plan year during their run out period. This will not impact their HSA eligibility, unless they carry over funds to the next plan year.
  • If a member has carryover funds and wants to enroll in an HSA for the next plan year, they have three options (if offered by the plan):
    1. The member can elect to move their carryover funds from a general purpose FSA to a limited purpose FSA for the next plan year.
    2. An employer can automatically change the member’s general purpose FSA to a limited purpose FSA for the next plan year.
    3. The member can decline or waive the carryover option for their general purpose FSA prior to the beginning of the next plan year.

Correction procedures for improper debit card payments (No. 201413006):

The correction procedures explained in this memorandum are currently used for PayFlex debit card payments.

Additional guidance:

  • An improper debit card payment is a payment that was not confirmed as an eligible expense.
  • Correction procedures for improper card payments include sending documentation to verify the expense was eligible, submitting a claim for another eligible expense or repaying the plan.
  • Once all correction procedures have been exhausted, the improper payment becomes “business indebtedness.” To the extent the employer forgives this debt:
    1. The amount is included as income and reported on Form W-2 as wages.
    2. The amount is subject to withholding for income tax, Federal Insurance Contributions Act (FICA), and Federal Unemployment Tax Act (FUTA).
    3. The amount is reportable in the taxable year in which the debt is forgiven by the employer.

FSA Carryover Update

December 17, 2013
On October 31, 2013, the Department of Treasury issued a press release and informational fact sheet announcing a major policy change relating to health care flexible spending accounts (FSAs) that has many positive implications for all FSA constituents - including administrators, employers and participants. The Department of Treasury has modified its FSA "use-it-or-lose-it" provision to allow a limited rollover of health care FSA funds. To view IRS Notice 2013-71, click here.

Highlights are as follows:

  • Employers that offer a health care FSA program have the option of allowing employees to carryover up to $500 of unused funds at the end of the plan year.
  • An employer cannot offer both a grace period and a carryover. Employers offering a health care FSA program with a grace period would need to eliminate the current grace period if choosing the carryover.
  • The employer can keep the grace period for the dependent care FSA even if they eliminate it for the health care FSA.
  • The employer chooses the amount of the carryover, which can be any amount up to $500.
  • The carryover amount does not count against the indexed $2,500 salary reduction limit.

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PayFlex wins 2015 award for Best Benefits Delivery

January 27, 2015

Paybefore has selected PayFlex as a 2015 Paybefore Awards winner in the Best Health Benefits Delivery Program category for our PayFlex Card® offering! Nominated for this award by MasterCard®, PayFlex was selected by a panel of five industry experts who served as judges for this year's competition. Award entries included nominations from around the world.

At PayFlex, we pride ourselves on leading by innovation, being a trusted advisor for our members and serving as an integral part of their financial wellness goals. Some of the support for our nomination and award included the fact that PayFlex was one of the first to offer a debit card as part of our consumer directed account-based programs.

Our innovation goes beyond just cards. We recently developed and launched an industry-first health care digital wallet with Money2SM for Health!

For nine years, the Paybefore Awards has conferred the most prestigious recognition of excellence in the worldwide prepaid, mobile and emerging payments industry.

New identity theft services for PayFlex debit cards

October 23, 2014
MasterCard® recently added Identity Theft Resolution Services to all MasterCard debit cards.
Since the PayFlex debit card is a MasterCard, card holders now have access to these services at no cost.

What does this mean for PayFlex members?

If a member’s PayFlex debit card is lost or stolen and the member believes they are a victim of identity theft, the Identity Theft Resolution Services can assist the member with the process of restoring their identity.

Identity Theft Resolution Services include:

  • 24/7 access to MasterCard’s certified resolution specialists
  • Internet monitoring to proactively detect stolen personally identifiable information and compromised confidential data online
  • Assistance from a specialist with notification to all three major credit reporting agencies to place blocks on cardholders’ records and obtain free credit reports
  • Assistance with completing paperwork to alert various parties of the potential fraud
  • Education about how identity theft can occur and protective measures to avoid further occurrences
To learn more about the Identity Theft Resolution Services, call the MasterCard Assistance Center at 1-800-MC-ASSIST (1-800-622-7747).

Money2SM for Health - a better way to manage health care expenses

March 2013

Citi® launched an innovative health care digital wallet called Money2 for Health. PayFlex, an affiliate of Aetna Life Insurance Company (Aetna), was selected as the chartered benefits company in the project’s development. Money2 for Health is designed specifically for health care and allows members to manage and pay their health care bills all in one digital location via mobile, tablet or personal computer. Members can link one or multiple accounts to make payments. For example, a member can link both their checking account and their PayFlex HSA and choose which one to use to pay each time. The program was recognized for Top Innovation in 2013 by American Bankers magazine. More recently, Money2 for Health won an Edison Award in the category of Electronic Funding Solutions.

This material contains only a partial description of the Money2 for Health program. Information is believed to be accurate as of the production date; however, it is subject to change. Please visit Health.Money2.com for the most up to date information.

The Money2 for Health program is administered by Citibank, N.A. Neither Aetna nor PayFlex direct, manage or control the services provided by Citi and do not assume any responsibility or liability for the services Citi provides. Aetna and/or PayFlex may receive a fee from Citi. The program provides access to a payment service, and each member has sole financial responsibility for the patient responsibility portion of his or her claims.

Money2SM, the Money2SM logo and Powered by Citi are service marks of Citigroup Inc. Citi is a registered service mark of Citigroup Inc.

Upcoming Events

Every year PayFlex takes part in a variety of industry conferences. Whether we’re sponsoring or simply exhibiting, we like networking with you! Take a peek at our upcoming conference schedule. We look forward to connecting with you at one of these events!

Institute for Healthcare Consumerism (HIS) – West Forum & Expo

November 16-18, 2015
Las Vegas, NV
http://www.theihccforum.com/2015vegas/

Contact a PayFlex Advocate

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Saturday, 9:00 am - 2:00 pm (CT)