The Heroes Earnings Assistance and Relief Tax Act of 2008 (Heroes Act or HEART Act) - The HEART Act was signed into law by President Bush on June 17, 2008. Under the provisions of this bill, the “use-it-or-lose-it” rule is eliminated for reservists called to active duty for a minimum of 6 months. All, or a portion of the health FSA account balance may be distributed to participants called to active duty for more than 180 days. The distribution may be made at any time after the call to duty, up to the last day reimbursements may be requested from the health FSA. No amendment to your Plan Document is required, but there will be new language in Plan Documents issued or restated after July 2008. If you have an active service member interested in taking advantage of this new legislation, please call us at (877) 424-3570 ext 4603 or e-mail us at flex-inquire@abpmtpa.com.

New Mileage Rate - The health FSA mileage reimbursement rate, for travel necessary for medical care, has been increased from $.19/mile to $.27/mile effective July 1, 2008. Therefore, reimbursement for medically necessary travel between January 1, 2008 and June 30, 2008, will be calculated at $.19/mile. Reimbursement for travel after July 1, 2008 will be calculated at $.27/mile.

Did you know? - If your company offers a Health Savings Account (HSA) as a benefit option, and is taking the contributions pre-tax, the flex plan documents need to include language reflecting this plan change. Did you know that HSA's could also affect participants with Health Flexible Spending Accounts? Health flex reimbursements for employees that choose to also have a Health Savings Account, would be limited to out-of-pocket Vision, Dental and qualifying preventative care expenses. The 2 ½ month extension may also be affected after the addition of the HSA benefit. To see if your current flex plan documents already have the Health Savings Account Benefit language, you can review a list of your Benefit Options in your Plan Document under section 4.1. You can also access your Plan Document online under the Document Library using your employer password. To go directly to your Employer Login, Click here.