Meet the Co-chairs - TAGLAW
Conner & Winters, LLP
Contact: Brydon M. Dewitt; Williams Mullen (North Carolina & Virgina, USA)
New federal guidance makes health flexible spending arrangement (FSA) participation more attractive to employees. IRS Notice 2013-17 provides a new exception to the FSA "use it or lose it rule."
The Use it or Lose It Rule. Under the "use it or lose it rule," amounts contributed to an FSA for a plan year may not be used to reimburse health care expenses incurred in a later plan year. Any amount remaining in a participant's account at the end of the year is forfeited. The risk of losing money in the account has discouraged employees from participating in FSAs.
Resolution No. 061-13 of the Ministry of the Popular Power for Nourishment was published in Official Gazette No. 40,281 of October 28, 2013.
Contact: Ken Mason; Spencer Fane Britt & Browne LLP (Missouri, USA)
Recent IRS guidance creates a new exception to the "use-it-or-lose-it rule" that has long discouraged employees from contributing to a health flexible spending account ("health FSA"). Sponsors of health FSAs may now allow employees to carry over up to $500 of their account balance from one plan year to the next, thereby reducing their risk of incurring a forfeiture. This "carryover" option is immediately available (even for 2013), but sponsors wishing to implement the option for either 2013 or 2014 will need to act quickly.
Contact: Blane Markley; Spencer Fane Britt & Browne LLP (Missouri, USA)
To qualify for Critical Access Hospital status, CAHs must be at least 35 miles (or 15 miles in mountainous terrains or areas that only have rugged secondary roads) from another hospital or designated by their state as a "necessary provider", cannot have more than 25 acute-care beds, must offer 24-hour emergency services and cannot have an annual average length of stay greater than 96 hours. Since 1997, CAHs have been paid 101% of their allowable costs for outpatient, inpatient, lab and other services to ensure the CAH stays open for its community. By comparison, traditional hospitals paid through the Medicare inpatient and outpatient prospective payment systems typically cover about 93% of the costs of Medicare patients.
Contact: Mark Cole; Spencer Fane Britt & Browne LLP (Missouri, USA)
The Centers for Medicare and Medicaid Services (CMS) recently provided additional information regarding the newly-implemented two-midnight rule for inpatient admissions. In response to frequently asked questions, CMS stated that it will instruct Medicare Administrative Contractors (MACs) and Recovery Auditors not to review claims spanning more than two midnights after admission for compliance with the rule during the implementation period of October 1, 2013 through December 31, 2013. Additionally, MACs and Recovery Auditors will not review any claims related to Critical Access Hospitals during this period.