When is the Summary of Material Modification Notice required?
A – If a group health plan or health insurance issuer makes any material modification in any of the terms of the plan or coverage involved that is not reflected in the most recently provided summary of benefits and coverage, the plan or issuer shall provide notice of such modification to enrollees not later than 60 days prior to the date on which such modification will become effective. The summary of Material Modifications is not a PPACA requirement. This requirement has been in existence for years. Over the Counter Drugs – HSAs, FSAs, HRAs and Archer MSAs PPACA will bring changes to what is considered a qualified medical expense for FSAs, HSAs, HRAs and Archer MSAs. Beginning January 1, 2011, OTC drugs will no longer be considered qualified medical expenses for any of those health accounts o Insulin is the one exception to this rule o For any other OTC drug, employees cannot use funds from any of those accounts, unless it is prescribed by a physician HSAs, FSAs, HRAs and Archer MSAs
Related Questions
- What is considered a material modification? For example, if I have to make a change due to the lack of generation availability, is this considered a material modification?
- How do I submit a modification/amendment to a base notice posted before the release of FBO Version 4.7, i.e. before the system allowed notice number validation by type?
- What type of notice are employers required to provide to employees relating to material modifications of health insurance plans?
