Please expect a slight delay in claims turnaround due to COVID-19 staff precautions.
Keystone Flex Administrators, LLC is actively monitoring the COVID-19 situation on a daily basis, along with any legislative updates that may be released.
First and foremost, we are still here to SERVE YOU!
Q: With so many schools and daycare's shutting down we have received a number of questions regarding if an employee’s dependent care facility closes, is that a qualified life event and can an employee stop their contributions to the Dependent Care Flexible Spending Account (DCA)? Also, when the daycare reopens, would that be considered a qualified event and then employees can elect and make a new contribution to the DCA?
Q: Can an employee open a DCA now that school is closed and they are in need of childcare?
Q: What if I have a change in home child care provider?
Q: HSA Contribution extension?
Q: Will there be a claims extension beyond the standard March 31,2020 deadline?
Q. COBRA Deadline Extensions - Employer/Employee
On April 28th, 2020, the Department of Labor (DOL) issued EBSA Disaster Relief Notice 2020-01, which extends COBRA grace periods to all plan participants.
Here is what you need to know:
Details on extensions below :
(1) the 30 day deadline for employers or individuals to notify the plan of a qualifying event
(2) the 60 day deadline for individuals to notify the plan of a determination of disability
(3) the 14 day deadline for plan administrators to furnish COBRA election notices
(4) the 60 day deadline for participants to elect COBRA
(5) the 45 day deadline in which to make a first premium payment
(6) the 30 day deadline for subsequent premium payments
For additional information about the DOL notice click here.
**All Keystone contact information is provided on all COBRA notices sent out to employees. Employees will need to contact Keystone directly with any questions regarding application of these available extensions.
The COVID-19 relief bill has officially been signed into law. This bill references the CARES ACT which includes provisions that make over-the-counter (OTC) medicines and menstrual products FSA, HSA, and HRA (if applicable to your HRA plan parameters) eligible. With this change, OTC items no longer require a prescription, and menstrual products are eligible for the first time.
Keystone is here to help make the transition for your employees as easy as possible in reference to these new regulations. We believe this is a positive change to the plans, that will further aide families during this pandemic!
Employees cannot YET purchase OTC or menstrual care items using their WEX Health card. Several things must occur before the debit cards (if applicable to your plan) will swipe for these newly eligible items. We have included a projection of that timeline below. This change will retro-back to 1/1/2020.
Until the debit card network is updated and fully functioning, and for any previously incurred expenses for 2020 that employees may have already had, Keystone will process those claims manually. Claims can be filed via the online employee portal, mobile app, or via email/fax/mail (manual claim forms can be obtained under the "forms" tab of this website).
We will continue to monitor any new developments on this daily, and post any necessary updates to this page. You can also visit FSAStore.com for additional information.
On December 27, 2020, the latest COVID relief bill, the Consolidated Appropriations Act, 2021, was signed into law. The law includes several provisions that provide relief for health and dependent care flexible spending accounts. Employers may, but are not required to, permit the following:
● Carryover of unused funds, with no dollar limit, from a plan year ending in 2020 and/or 2021 to a plan year ending in 2021 and/or 2022; or
● Extension of the grace period to up to 12 months after the end of the plan year for a plan year ending in 2020 and/or 2021.
The above applies to both health and dependent care FSAs.
● Employees who cease participation in a health FSA during calendar year 2020 or 2021 may continue to receive reimbursements from unused benefits or contributions for claims incurred through the end of the plan year in which such participation ceased (including a grace period if applicable).
● Increase the maximum age (by one year) for certain dependent care beneficiaries who aged out during 2020 and provide additional relief for such dependent care beneficiaries in 2022.
● Prospective modification of election amount for health and dependent care FSAs for a plan year ending in 2021.
As stated above, these provisions are not mandates, but are options for employers to consider. Plan amendments must be made by the end of the first calendar year beginning after the end of the plan year in which the amendment is effective (for example, calendar 2020 plan amendments must be adopted on or before December 31, 2021), provided the plan must be operated consistent with the terms of the amendment beginning on its effective date.
Please note that while we wanted you to be aware of the provisions in the law and have a chance to consider them, the law is quite voluminous and additional IRS guidance may be forthcoming. In addition, Keystone cannot provide legal or tax advice regarding this law or its requirements. For those questions, you should consult your own counsel.