Medical Mutual Announces FSA and HRA Substantiation Changes and New CDHP Agreements
Medical Mutual of Ohio recently announced that they are simplifying their substantiation administration process for flexible spending accounts (FSA) and health reimbursement arrangements (HRA). This applies to small group (2–50), 51+, 100+ groups.
There will be no impact to the group’s FSA and/or HRA administration pricing. Please see below for important information regarding these changes.
What is Changing
- Member transactions less than $100 will be auto substantiated and not require substantiation documentation.
- Any transaction, regardless of dollar amount, at known low-risk merchants (e.g. hospitals, doctors), will no longer require substantiation. Eligible merchants will be determined by Medical Mutual.
These changes are implemented with the intention of reducing the number of member substantiation receipt requests and ultimately reduce employer disruption.
Existing Groups with a Medical Mutual CDHP
In late April, Medical Mutual will mail groups an updated consumer-driven health product (CDHP) agreement, along with a postage-paid return envelope and instructions. The updated agreement will allow them to apply their new substantiation process. For existing groups with a signed agreement on file, the new substantiation rules will only be applied once the signed agreement is returned to Medical Mutual. Groups with no signed agreement on file will automatically be transitioned to the new substantiation process. It is important that all groups sign and return the updated agreement.
Important Notes
- The revised CDHP Agreements will be posted to MyBrokerLink with the revision date of 4/21 in the title.
- Always download the latest version of the agreements from MyBrokerLink.
- Members should still keep transaction receipts for tax/record-keeping purposes.
Contact your Cornerstone representative with any questions.
