Uniform Coverage in Payment of Dependent Care Benefits

[Guest Paul Jalazo]

While it is clear that uniform coverage is required for a health fsa and it is further clear that the regulations specify that this same requirement does not apply to a dependent care benefit, is there any prohibition against an employer voluntarily applying the "uniorm coverage" rule to their dependent care benefit?

[Guest JerseyGirl]

There may be no regs. preventing this, but I wonder why an employer would want to expose themselves to a risk like that.

[Lisa Hand]

The risk question is a good one. Also remember, you can not reimburse expenses in advance of the actual date of service. By reimbursing DCA expenses as the funds are payroll reduced, this assists in the proper adminstration of this benefit. Otherwise, you not only have exposure, but risk compliance problems as well as additional complications in claims adjudication.