uberPool and Lyft Line Commuter Benefits

Great News! Transit to work, just got easier! You can now use pretax dollars to pay for uberPOOL and Lyft Line when you commute. This means you could save up to 40% when you rideshare to work via uberPOOL or Lyft Line.

Great News! Transit to work, just got easier!
You can now use pretax dollars to pay for uberPOOL and Lyft Line when you commute. This means you could save up to 40% when you rideshare to work via uberPOOL or Lyft Line.

Do you use uberPOOL, or Lyft Lines to commute to work? Now, you can use PRE TAX dollars to pay for your ride share, giving you more alternatives to your daily commute. HRCTS is pleased to announce our VISA ICard has been approved as payment for these vendors, providing you the opportunity to save up to 40% when you rideshare to work!

Lyft Line enables commuters to save money by commuting using their pre-tax dollars. Lyft Line matches people going to the same place at the same time to share an eligible van pool vehicle (six or more seats).  Marketplaces such as:  Miami, Boston,New York, and Seattle can now us their HRCTS VISA iCard to their Lyft Line commute.


UberPOOL has promoted the four-passenger maximum as a convenient way for people going in the same direction to share a journey and that the pretax commuter benefits will make it more affordable.I'm a new Text block ready for your content.


Use of the HRCTS VISA iCard is currently available in the following uberPOOL marketplaces: Atlanta, Boston, Chicago, Denver, Las Vegas, Los Angeles, Miami, New York City, Philadelphia, San Diego, San Francisco, and Seattle, and in the state of New Jersey.



Health Safety Net Surcharge Decrease

Decrease to HSN Surcharge

The Health Safety Net (HSN) Surcharge formerly known as the Uncompensated Care Pool, is a fund created by the state of Massachusetts to finance health care for the low income and uninsured within the state.  As we have previously notified our clients, the surcharge tax is levied upon all health care services rendered at an acute hospital or ambulatory surgical center in Massachusetts. Any individual or entity that makes payments for the purchase of health care services by hospitals and ambulatory surgical centers must pay the surcharge.
Each year the state of Massachusetts reviews the surcharge rate and fund usage, to determine if any adjustments need to be made for the following fiscal year. This year effective October 1st, 2016, the Health Safety Net Surcharge percentage is 1.76%. Below is a chart which reflects the surcharge percentage change from last year to this year, and the dates in which they were effective for.

     FY                                 Surcharge %                                               Coverage Period
2017                                     1.76%                                  October 1st, 2016 – September 30th, 2017
2016                                     1.86%                                  October 1st, 2015 – September 30th, 2016

As your TPA, HRC Total Solutions, makes payments to the HSN on your behalf. The HSN Surcharge is calculated and paid on a monthly basis. HRC Total Solutions determines the amount of the payments subject to the surcharge by multiplying the total payments made to qualified Massachusetts acute hospitals and ambulatory surgical centers at the end of each calendar month by the surcharge in effect.

2016 PCORI Fee Reminder

PCORI Fee Overview and Guidance

The Affordable Care Act imposes fees on issuers of specified health insurance policies and plan sponsors of applicable self-insured health plans to help fund the Patient-Centered Outcomes Research Institute. The fees, required to be reported annually on the 2nd quarter Form 720 and paid by its due date, July 31st, are based on the average number of lives covered under the policy or plan. The fees apply to policy or plan years ending on or after October 1, 2012, and before October 1, 2019. HRCTS will make available an Average Covered Lives Report to all clients that are responsible to file and pay the PCORI fee each year. You can request this report by contacting your Account Management Team.

The IRS recently released the revised Form 720 that insurers and sponsors of self-insured plans will use to pay the Patient-Centered Outcomes Research Institute (PCORI) fee. The fee is due by July 31 of the year following the calendar year in which the plan/policy year ended. Sponsors of any plans that ended in 2015 must pay the 2015 fee by July 31,2016.  Plan sponsors can now complete their planning for payment of this fee. The IRS has also confirmed health insurers and self-insured health plan sponsors can deduct PCORI fees as ordinary and necessary business expenses. The fee is based on the number of covered lives including employees, retirees and COBRA participants along with their covered dependent spouses and children are all counted. However, only the employee, retiree or COBRA participant needs to be counted for an HRA or a health flexible spending account (health FSA) -- dependents covered by these accounts can be excluded.

The types of plans that must pay the PCORI Fees by July 31, 2016 include:

  • Health/accident plans
  • Health Reimbursement Arranagement (HRA) plans that are not an excepted benefit (Employer contribution is greater than $500)
  • Health Flexible Spending Account (FSA) plans that are not an excepted benefit (Plan has employer contributions with the maximum reimbursement greater than two times an employee’s salary reduction election or employer contribution is greater than $500)
  • Retiree plans

Calculating the Fee:

The amount of the PCORI fee is equal to the average number of lives covered during the policy year or plan year multiplied by the applicable dollar amount for the year.

  • For plan years that end on or after October 1, 2014, and before October 1, 2015, the fee is $2.08.
  • For plan years that end on or after October 1, 2015, and before October 1, 2016, the fee is $2.17.

For policy and plan years beginning on or after Oct. 1, 2016, and before Oct. 1, 2019, the applicable dollar amount is further adjusted to reflect inflation in National Health Expenditures, as determined by the Secretary of Health and Human Services.

IRS Form 720 and Instructions:

IRS Form 720 can be accessed at http://www.irs.gov/pub/irs-pdf/f720.pdf which is an interactive document so that can be completed on line.


The PCORI fees are entered on line 133 for the appropriate plans. See pages 8 and 9 of the IRS Instructions for completing these fields. Instructions can be found at http://www.irs.gov/pub/irs-pdf/i720.pdf.



Complete the fields on page 7 and make your check or money order payable to “United States Treasury”.

Additional information on the PCORI fees can be found here:
Patient-Centered Outcomes Research Trust Fund Fee (IRC 4375, 4376 and 4377): Questions and Answers

• An IRS chart that shows which types of benefits the fee applies to:  Application of the Patient-Centered Outcomes Research Trust Fund Fee to Common Types of Health Coverage or Arrangements

IRS Form 720 Overview

IRS Form 720 instructions (see pages 8 to 9)

Please Note:
This information is provided for educational purposes only. It reflects the understanding of HRC Total Solutions and our partners using the available guidance as of the date shown and is subject to change. It is not intended to provide legal advice.  You should not act on this information without consulting legal counsel or tax advisors.  (Updated June 16, 2016)

IRS Releases Inflation Adjustments for 2016

On Wednesday, October 21st, the Internal Revenue Service announced inflation adjustments for the 2016 tax year.

For FSA plans the election limit has remained steady at $2550.  For tax year 2016, the monthly limitation for the qualified transportation fringe benefit remains at $130 for transportation, but rises to $255 for qualified parking, up from $250 for tax year 2015. Revenue Procedure 2015-53 provides details about these annual adjustments

The “high deductible health plan” annual deductible cannot be less than $1,300 for self-only coverage or $2,600 for family coverage, and the annual out-of-pocket expenses cannot exceed $6,550 for self-only coverage or $13,100 for family coverage.  You can read the full details in the IRS publication - Rev. Proc. 2015-30.
As always if you should have any questions regarding this change, please contact the Client Relations Team.

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